SUBCONTRACTOR Agreements! ► How WE Split PROFIT And Work Together On Job Sites
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- Опубликовано: 19 июл 2024
- Subcontractor definition: A subcontractor is an individual or in many cases a business that signs a contract to perform part or all of the obligations of another's contract. ... The incentive to hire subcontractors is either to reduce costs or to mitigate project risks.
So overwhelmingly the most popular question I've been receiving over the last season and even the last few months, was HOW do Mike, Brandon and myself work together. How do we decide who keeps the profit on a job, how we do we hire each other out and not destroy friendships over MONEY.
Very simply, in the beginning of the season, we created individual contracts and subcontractor agreements to determine our costs between each of our companies. Although handshakes are cool, it's always good to have formal agreements between friends and companies to help communicate expectations when doing work together.
Lamens answer: how do we pay each other? We had an itemized break down on almost every task that could come up during the summer, that we may need to hire each other out for.
If I needed Mike to make a 10 yard mulch delivery for me with the F350? XX Rate.
If I needed to sub out Mike to mow lawns for me for the day, we had a set rate per hour for him and the rig.
If Brandon needed Mike to bring his JD Tractor for a landscape install, we had a set rate for the tractor for the day (or half day).
We had everything spelled out in each contract, so we knew what the cost of each person, task, or equipment was going to be. THEN we were able add those costs into the rest of the job costs, ie materials, expertise, hours, labor, DESIRED PROFIT, and then come up with our numbers to present bids on work.
I will say this, the reason most friendships and business relationships fail is generally speaking, DUE TO MONEY related discussions. PLEASE, be mature when doing business with friends. Have solid agreements in place so there is NO (or significantly LESS) awkwardness when hiring each other.
The last thing you need to do is lose friendships over a few hundred bucks. Take some time, before the craziness of the season, and work out rates between each others companies if you decide to work with friends. You can ALWAYS trade services, labor, etc. But the point of these is to at least have something to fall back on so each party involved can know their costs, know the costs of hiring each other, and keep it simple when tacking jobs all year.
Hope this helps you guys out! Mike is selling his subcontractor agreement contract (and the rest of his contracts) on his new website and platform called thedebtfreelandscaper.com
Get the document here: tinyurl.com/y8pjsaat
Mike's Channel The Debt Free Landscaper:
tinyurl.com/yd89gd8u
He's made them very affordable for the lawn community, and helped make them available for you guys who want to polish up the back end of your business. They're the same programs and contracts I've instated in my business since fall of 2017. Check them out! PS, of course Brians10 works there. Lol..
If you guys found this one helpful, shoot it a big thumbs up, and leave me a comment down below if this is something you may plan to use in 2019.
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Was this info helpful for you guys? I know it’s a little more 202, but as your guys businesses grow, topics like these become really important. I know this year was a lot of learning for me, and this area was always an enigma. Thanks to Mike and Brandon, this year worked out great when working together.
Very so much im in Baltimore trying to strart my subscription jobs at apt complex but where do you find the jobs or can yall subscription jobs for me or we get together i do a lot of apt turnover for Baltimore complex
So how are you calculating your markup for profit on top of their subcontract costs?
Great video! Having something like this is how you will eliminate future arguments. You guys will be friends for a long time because you have a mutual understanding of how you’ll operate your business and won’t upset each other at work. This is a super helpful video! Thanks Brian & friends!
Carson Schifsky that’s the goal! Thanks pal 👊
Friends built from work is good.work built from friends is bad
Excellent content Brian. I had a business partner one time 15 years ago to go along with a million dollar a year landscape & maintenance firm. Long story short, because we only had a gentlemans agreement, nothing on paper. The business ended up folding within nine months and I lost my license in the process. Partnerships are GREAT, but put it all on paper guys & gals like Brian is mentioning. Thanks for the vid, my man! You guys are blessed!
Rob & Marisela Francis thanks Rob!
Rob & Marisela Francis .... I went through something like you did about 13 years ago and learned my lesson only to be in business by myself but definitely got to have an agreement and I've come to the conclusion that a partnership is the only ship that doesn't Sail
I’ve never thought about that nice to have relationships with others in case you have an emergency etc to keep your business going, great information Brian.
Great video as always guys! This is really important to have in business and it is very respectable that you guys are helping offer a guide!
It's great that you guys work together the way you do. It's nice to have a good working relationship with people that do the same type of work that you do. You never know when something can come up and you'll need help or you can help them. Having good friends are priceless.
6.4 HemiDriver 💯!
I love these kind of videos. I had a friend who thought he was entitled to half of the profit. This is a great way to not make it awkward! Thanks for sharing 👍
Lol yeah been there
This is why I love working for the guy I work for, he’s honest and looks to benefit others, and us guys return the favor. Everyone is happy. If I get a side job, he lends me the equipment I need and in turn we work hard to keep his clients super happy and keep his business on the up and up. Cause and effect, he helps us, we make sure to help him.
Hey Brian, I network with other friends in other home service business's BUT we don't subcontract. For example, a friend of mine builds decks. Often times the customer wants landscaping around the deck or a rock bed under the deck. He recommends me and i deal directly with the same customer. 9 times out of 10, that customer takes the recommendation of my friend already doing a job for them.
That can work too for sure
Nice video and tips Brian, Brandon and Mike, i don’t really subcontract because I have been blessed with the equipment to do the jobs that I need to but that is how you make friends is working together!
HUGE GAME CHANGER! Great great info! I was struggling with this last year. And I did this in my head, I knew my buddies prices. But now I know who costs what. But I will say that hopefully Contractor A doesn't get upset when you use Contractor B because he was there to respond 1st, has a cheaper rate, or has hard feelings by a past event from another contractor, etc. Or you could maybe just have a certain elect of you MVPs. And not alot of the same type of contractors, like masons, mowers, lighting etc. Great video, seems like a long good relationship between you guys. Very good job!
Good stuff Brian. You gotta know your overhead number. Everyone wants a lot of money but how many know how much money they actually need. You and Brandon would be great partners someday. Next level. You both have really good focus and a good grip on what you want for the future. I look forward to watching you grow. Peace.
Glad to see you guys doing good an working well together when needed keep it going
Fantastic video as always. I did a lot of stuff on hand shakes when I was younger. Some worked out, some didn't. Now that I'm older, having it in writing actually is best for all involved!!! It actually has saved friendships in some aspects, and situations have arised where one of the ppl. involved actually did get mixed up and forget their portion of the obligation. Having it in writing saved the day...As always keep killin it, and Dirty Jersey out!!!
For sure!
Loved the video as always, lots of great information!
As a CPA, I don't know why I watch these videos, but I can't stop.
🤷♂️ thanks for watching tho!
Smart way to network with each other. You guys are lucky . We don't have anybody that we can count on around here.
Good help and friends are harder to find, that’s a fact.
Jay if I was down there, I'd have your back!!! Born and Raised in Jersey, but I swear I'm a Country boy at Heart!!! At the end of the day, wifey looks like she's ride or die for you guys!!! As always, God bless, and Dirty Jersey out!!!!
@@moneymakingmikeg.9555 appreciate the support 😉
Great video Brian 🤘 this is the next step for a lot of guys in the industry but...possibly another place where guys will cut corners and run into issues...and Brian, I loved your point about “free trips” and having to maintain your work while being out of town and keeping it together
Thanks man! Folks may not understand how thankful I am to be able to go on these trips, but it’s true, it costs a lot of time and money to do it! I’ve always said I’m thankful that people get it on my channel, it’s called a partnership. 👊
Great advice guys! I've been looking to partner with another local guy and now I know how to manage that conversation. Appreciate the topic.
AWESOME Info !! I appreciate you guys VERY much !
Brian....great video brother. Got to keep the relationships good. I call them partnerships lol. Gives me a new perspective to think from going forward too.
Totally!
Great video guys keep up the good work a lot of information loved it
Loved the content. Very helpful. I look forward to learning more from you guys. Maybe in the future I could take some notes on the subcontractor agreements. I have been running my business for a few years but recently had to take a little time off. Looking to get back into it and soak in all the knowledge possible. Great thing about it is Iam in Michigan also.
You can pick them up at debtfreelandscaper.com. Brians10 saves 10% there still 👊
Brian you are just loved.... I support u all the way you love for helping others!! Honesty and integrity.. So 😎 I hope to meet you some day.. Keep Doing it!!
Heck I don't need college's just subscribe to your channel..lol Learn from the Best!!
Thanks pal!
Really Love the video! To Be honest I totally forgot about your business running even when you weren't there. I a summed that you had a guy working with you every day and he would take care of the daily running. Glad you have really good friends to help you out in a pinch. I do have a question about a video though. Can you do one one ice mangement . I know you have Mike as your spreader but can you show how you put it together to make it work. Thanks! I forgot to add A really Big congratulations to Brandon for going out on the limb and getting it together with his business. You sire had a lot of homework going into the spring and getting it right. Especially getting the right help and friends to help succeed!
You bet buddy!
This info definitely changed my life. Thanks guys.
Nice job! Yes! Very informative!
Great advice. I dont sub because most my clients wants most all done. Most do not want one mow and another mulch. Good advice especially if not acquainted well with each other.
Thanks for the great info
Great vid, great info guys!
😲very good information!
I needed this!! Thank you, I'll check out that contract you have online
Love it!
I'm working through this contract that I purchased through your account and I have to say that is a great template for just about any kind of contract that could be made for a general laboror. I also have to say that it is a little weird in several instances. For one it uses gender specific identifiers where there usually isn't any at all. It keeps saying things like "his tools" and "he will" and "assigned to him for the conduct of himself".... also, there is a lot of fluff in here. "Large number of clients" "Countless years and significant financial resources" ..Adding fluff doesn't not make something more valuable.. all in all, I will use this as a template and revise everything in it to fit my needs. Thanks for putting it together.
Great information.
Awesome video guys
Great info guys. Know your P/L
Here is a question. How does this go with the customer? Are they okay with the idea of someone else showing up to take care of the lawn? Are they showing up in your uniform or there own? Do they or you let the customer know your are having someone else run your route for the day?
We let the client know someone else is tackling whatever part of the job we're subbing out. They wear their uniforms since it's their own company, etc. Good question.
Thank you for making this video. Very helpful to me as I am starting to get involved in sub contracting. My question is if you need labor/equipment from your subcontractor how do you know if it is available? Do you guys share your schedules with each other on a weekly basis or something like that?
We group text daily, it never ends. We try to figure things out a few weeks in advance, knowing what days work better for each other.
Nice! Thanks!
Great video
Good topic and good video guys!
Great video..... I think you three guys make a hell of a team....smart buisnessmen.
Thanks Michael
Hey what is going on with Brandon would love to see how his year went for 2019. As always great info keep it up.
Official Mates pre nup agreement so u all no where u stand is a great thing to protect friendships and every one knows where they stand nice one.
Lol yes
Mike looks too happy!
lol
How do you minimize customer confusion with subcontracting with customers? For example, Brandon comes to the job with his truck that has lettering for his business.
We let the customer know in advance!
Could you and Mike do a video on ice management I'm looking to get into ice management down here in the Ann arbor area
Justin Becroft sure, ill ask Mike
Good info
Thanks Tony!
Awesome video. Quality info that I didn’t know. 3 excellent business owners working together. 🔥👊
👊
Brian... one thing I did not hear addressed concerns IRS rules about contractors/subcontractors. Particularly, the setting of schedule and/or hours as a requirement of the subcontractor, and if hours or a schedule is required, then is he really an employee? Same goes with the question of whose equipment/tools are being used to complete the job? Thanks
That question is above my head sorry. I’m sure Mike or someone else can weigh in to help out
Good question. If the entity you are hiring as a subcontractor operates as a legitimate business (has an EIN vs using a SSN) then they likely aren’t even eligible to be thought of as w2 labor, as is the case with the three of us operating as LLCs and not individuals.
That issue and the usage of equipment is covered and allocated for in the agreements we’ve executed.
How I can contact you guys
3 amigos!!😁😁 but people who understand business don't question the what's and why's!!! Small minded people are soooo worried about the other person "GETTING AHEAD" That's what I get from the people who are worried about what you get back from BRIANS10 or any discount code for that matter. They're still saving money right???😤😤 I bet you don't see them out there trying to run a more successful business or a more successful life. The info that you put out is always helpful. It's up to that person to put forth the effort with the information learned.
Truth bro! Thanks for the kind words.
@@BriansLawnMaintenance you're more than welcome. People just don't get it. Sure there are perks for being an affiliate but you don't pay bills just on those affiliate kickbacks. I think you should send baby bottles to all of the ones who whine about it!!
Lol. If I didn’t know better, I would probably say the same thing. But it’s a business. And this one isn’t a non-profit lol. I’m not there yet 😂
@@BriansLawnMaintenance no doubt. I don't see anyone of them jumping up and down to put tires on your truck or send in a payment on the truck! Ask them for that and they'll be like😶
This video is help me out
This video may be a good one for viewers to comment with their city so that they can network within their community with other fellow lawn care professionals? What do you think Brian? Not sure if you want to do a networking video to officially do such? I will say here's a shout out from Newport News, VA here---Denbigh Lawn Care, LLC .
Local trade shows do best for networking imo!
Brian, off subject but I’m curious. As your business just kept growing, do you hire out someone who does your social media? It seems like your channel can post a lot, but not just one platform. From one solo guy to another idk how u have all the time to work and edit and post and do it so often.
We do it all man. Yep.
Great video I was wondering how you got all you stuff done being solo, you have better help then helper, guys the have skin in the game other then just a pay check. Great video!!!
Backyard Grill Master yessir! I had to get very creative this year on a lot of angles. Made me better because of it!
I have a question, so bear with me... I have an 8 yard Dump trailer, I get $75 per load when I deliver mulch for a friend, (he gives me cash for mulch, I give him the receipt along with the change after i get to the job so he knows im not screwing him, then gives me the $75 after I dump it). If he needs 24 yards delivered, (3 loads for me), would I still charge $75 per load, so $225? or should I give him a couple dollars off as a thanks for using me instead of having the supplier deliver it for much cheaper and only 1 load? I know thats kinda my call, but was wondering if this ever happened between you 3 guys, and how you handled it. Either way it would be a profitable 2 hours for me, wanted to hear from the pros though. Thanks
I pay a flat rate for each delivery mike does for me. It’s your call but, I wouldn’t see why you would charge less. Make money, the customers the one paying for it in reality
Hi Brian once you pay for contract how you get them just starting my business thanks
Luis Torres they’re downloadable/editable!
mike looks _happy._ 😂
kodiak wild we had just eaten delicious sandwiches at Primanti Bros 😋😂
@@debtfreelandscaper3046 😂 that would do it.
hello, I wanted to ask, How does an independent contractor make profit by hiring subcontracters to work for him?
Is the subcontracting agreement you posted in the link only for landscaping?
Nope! We’ve had many folks over the years utilize it in various industries.
What kind of gas do you use and does the gas effect your equipment's performance.
Just regular 87, 89 in handheld
If a contractor has shareholders or co owners, can the co-owners contract on behalf of the company under the primary owners license in general contracting? Thanks for the vudeos
Not sure sorry that’s above me!
Hi where’s his website for the contract form?
Excelente. Video inf. Thank you!!!
Bedell has his stuff at www.DebtFreeLandscaper.com
How do you go about telling your clients your rates have gone up ?? We have some clients that have been with us since we first started and I feel bad telling them we have to raise our prices. In California where I live everything is getting expensive so now we have to raise our rates if we plan to stay in business.
I call it a price adjustment. Price goes up $2-$5-$10/Week, whatever it is.
Brian's Lawn Maintenance I will be speaking to our clients, I have a feeling some will choose to look for someone else but we have overhead to cover. Thank you.
What camera (and lenses accessories, if applicable) do you use?
Canon 80d
Awesome. Thanks. What tripod are you using on your dash in this video?
Hey Brian, do you use home advisor or Angie’s list to get jobs?
Nah neither
Do you guys have a paperwork agreement for a gutter cleaning company sub contracting Gutter system installation out to other companies?
Unfortunately I do not, but you may be able to find one for free on Google!
My husband is an independent contractor with a company that handles tv repairs. He often needs help, but doesn't want to hire employees. Could you better explain, step-by-step, how he should go about subcontracting repair work with other field technicians?
I can, give me a few but absolutely!
@@BriansLawnMaintenance Great! Thank you.
So what’s happens if one of you guys don’t break even on a job? Will the individual still want their rate or is willing to take less?
Not sure how we wouldn’t make profit on a job. That’s never happened really,
Brian's Lawn Maintenance human mathematical error it’s uncommon for a successful estimator to make but it happens
Well in this theoretical example I guess who’s ever job it is. The subs don’t carry the weight of the owners faults.
Brian's Lawn Maintenance the question arose because a company that has given me many projects subbed out to me. Did a rookie mistake and offer to pay me the full amount of his bid which equalled my rate, but instead I was okay with receiving less because at the end of the day I earned money and sometimes we have to go out our way for others.
Totally man. I see both sides.
Do you have an example of a sub contract agreement (document) that you could show me or email me? I have a fire mitigation tree job I am able to do with huge profit but need to sub for some work.
My friend mike sells one at debtfreelandscaper.com
Budro sounds like shawn michaels the wwf wrestler lol
Guys look in to your states subcontractors laws. Law suits will be the least of your worries. Do it wrong and you are responsible for work comp and payroll tax. I would definitely talk to your accountant or check with your state. Brians10 won’t save you nothing if you do it wrong😂🤪
Agreed, we’re all on the same page and are in compliance, no worries :)
Have you ever ask for commission per job when you subcontract it out?
That's an appropriate question. Just depends on the job and the contractor.
I get jobs subbed out to me and though it's not in writing we agreed I get 80% he gets 20% real cool deal
The only way something like this works is if your doing business with reasonable adults! Most people are neither!
sean yep, people are greedy. Don’t be greedy, just be honest with what you need to profit, and don’t demand more than you need. Put everything on paper, and do your job, and everyone will be happy and everyone will benefit.
Goat Gang Hoodie
Recommended insurance?
We use State Farm, nothing fancy!
I gave away $10k worth of landscape jobs 2018 season to a local landscape company because I only mow,mulch,prune and cleanup as a PT lawn care solo guy.He sent me $200.Going forward this season being my 2nd season I don’t want to giveaway 10k worth of jobs I want to see some of that profits especially since they are my weekly mowing clients. I wouldn’t want to work for him hourly. What is the best way to approach him about making money off some of the jobs for 2019 ? Do you have a equipment defender discount code ?
Try to set up an agreed upon profit share. Maybe 5-7% of the net profit of whatever job he does. Or a flat referral fee rate, say $100, $200. Just get creative and figure out what works best for you guys.
Yep, Brians10. Rock on buddy
Where is the Mowers reviews!!!!!!!!!!! lol
Backyard Grill Master This week! Been swamped sorry :(
@@BriansLawnMaintenance Bull shit stop hanging with you buddies an get the mowers reviews done! lol :-0)
You see bedells black trucks all around Oakland County...
He’s an army!
Finally lol
Captain Obvious saving the day again god bless
when are you coming to dearborn to meet you brian this cisco from cla lawncare & snow removed llc
I’ll be at the Farmington Weingartz open house and the MGIA in spring
Working with friends doesn’t work. Plain and simple.
We clearly just described how it did and does for the last 12 months, and Brandon and I for uhm, 9 years. So. Now this is just awkward, plain and simple.
Brian's Lawn Maintenance fair enough Brian. But you must concede that what works for one does not necessarily work for everyone. I was not trying to be negative towards you personally. I have always enjoyed your videos.
Well of course, not everyone’s situation is the same as ours. But you can’t make blanket statements like you did. There’s millions of friends who work together in business and partnerships. Some of the biggest companies were made and started with friends working together. Microsoft, Apple, Amazon. Thanks for the support buddy
18 minutes to talk about something that should take 5 minutes. Manginas. They're more invested in growing their YT channel than cutting grass.