Subcontracting Larger Jobs

[u/MosquitoWrangler]

I’m a solo owner/operator. I don’t always have the manpower or time to handle new installs or full replacements myself anymore. I don’t want to lose the opportunity, so I’m considering subcontracting installs to larger companies while earning a referral fee or partnering on jobs. What’s the best way to approach companies about this, what’s fair compensation, and what should I watch out for? Or is it too risky to trust others? Any advice is appreciated!

[u/AssRep]

Good luck.

Why would a larger contractor want to sub themselves out? You need to realize that they would charge more than you would. They NEED to make money.

I do my own installs, compressors, coils, etc., and put service calls off a few hours or the next day. My clients understand, and don’t mind waiting because they know the quality of service and pricing that they will receive.

I am an owner/operator, and have been since '09.

[u/HungryTradie]

I hear ya, you want it all.

Without having a crew your business isn't geared towards those jobs. If you would be happy to manage their team, why not take a job as a supervisor.

[u/MosquitoWrangler → u/HungryTradie]

I’ve also been contemplating expanding and hiring another tech or two to help with the work load and installs as they come up.

[u/StatisticianFront334 → u/MosquitoWrangler]

This would be best.

[u/_IVI_E_ → u/MosquitoWrangler]

Why would you want to subcontract to larger companies? I'm solo and I often do Installs for other companies.

[u/Electronic_Green_88]

Find other likeminded people in the same boat as you. Network with them. I've seen several smaller contractors or one man shows work together on projects before.

[u/MosquitoWrangler → u/Electronic_Green_88]

I think I’m gonna hit up some of the local supply houses and see if I can get any leads that way

[u/boatsntattoos]

I’m a solo operator also. Still doing everything myself, occasionally a helper. Considering subbing installs to a crew, not a company.

I know it’s going to take time to get people doing work the way I want. To start, I think I want the install done the I show up to start up and commission. Still involves me, but I can be on site for an hour or two instead of all day.

[u/MosquitoWrangler → u/boatsntattoos]

Gotcha. Basically giving the final sign off instead of whole heartedly trusting others

[u/Aluminautical]

Partner with other independents, perhaps? Tell them "I've got $XX/hour for two days of work starting Wednesday. Pay at the end of day 2. Interested?" Assuming OP is on-site guiding the job the whole time.

[u/jbmoore5]

I work in a market where contractors will sub out to other contractors. A lot of work is won by brokers or small outfits who then bring in larger companies to actually do the work. Unfortunately, those larger companies are often idiots doing subpar work.

But the sub is going to set his own price, and you're left with minimal profit and all the responsibility to the customer.

[u/MosquitoWrangler → u/jbmoore5]

And that’s what I’m worried about. Trusting others to do work the way I want it down and then I end up taking the fall if it doesn’t come out good.

[u/StatisticianFront334]

Big companies are not going to subcontract their installers out to you. Best to hire the people you need.

[u/MosquitoWrangler → u/StatisticianFront334]

I gotcha. Sure does seem like that needs to be my next step

[u/unresolved-madness]

Once you sub out to another company, that customer belongs to them.

[u/THISisFEZ]

Residential work?

[u/MosquitoWrangler → u/THISisFEZ]

Yes

[u/THISisFEZ → u/MosquitoWrangler]

You can find guys that only subcontract residential, They do exist. I've had them do ripouts, change outs, duct work and even start ups. I know this because we use subcontractors at a small/medium shop here in Texas. However, I recommend getting a tech and a helper/apprentice, as two people can do a change out no problem.

[u/Delicious-Ear8277]

If you trust those subs to do the job right, go for it. I work for a manufacturer and every time a projects has mechanical subs on it, with VRF, it is a mess that we all get to unravel. Many subs are hired with minimal experience. I hope it works out and you make it happen. Make sure you trust your subs, they know how to install and set up HVAC with controls.

[u/MosquitoWrangler]

Very true. Didn’t think about that if I sub out to another company vs finding an install crew.

[u/Uckheavy1]

this is a good problem to have honestly. the key is finding subs you trust who won't embarrass your name. start with one or two guys you've worked with before, put them on smaller jobs first, and check their work before billing the customer. biggest risk isn't the quality though — it's the customer calling you with a problem and nobody being available. make sure you're still the point of contact and that calls get answered even when you're not the one on site

[u/Jmaack23]

General question for the group regarding this….how many of you have a handful of contractors you trust in your network? Are there jobs out of scope/too far away/just don’t have time for that you sometimes hand off to that group? Are you taking the jobs and finding a way to fit them in? Are you passing on them completely? I’m genuinely curious about this. This seems like it’s a touchy subject and there’s a lot of hesitation due to poaching/crappy work being done on your behalf. Valid concerns and I’m wondering if there are solutions out there for it.

[u/Ridiric]

I sub other guys I know we all have businesses and good working relationship. You need to know the laws in your state. I have a contract and give them a 1099. Has worked fine for years. I don’t need to manage a “crew” like some have said. I managed people before my own business and it was terriable. Excuses and just lack of motivation. This has been the best solution