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Subcontracting in the Snow & Landscaping Business 1 Ed Laflamme LIC The Harvest Group 284 New Canaan Road Wilton, CT 06897 www.harvestlandscapeconsulting.com.

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Presentation on theme: "Subcontracting in the Snow & Landscaping Business 1 Ed Laflamme LIC The Harvest Group 284 New Canaan Road Wilton, CT 06897 www.harvestlandscapeconsulting.com."— Presentation transcript:

1 Subcontracting in the Snow & Landscaping Business 1 Ed Laflamme LIC The Harvest Group 284 New Canaan Road Wilton, CT

2 N IGHTMARES N IGHTMARES Yikes! 2

3 Financial People Equipment Expertise Workloads Geography 3 Why Subcontract?

4 Financial 1.Don’t have the cash 2.Can’t take on more debt 3.Reduce exposure if job is lost 4.Sub smaller jobs to free crews 5.Fix the cost to prevent overruns 4 Why Subcontract

5 People Don’t have the right people Don’t have enough people Equipment Need Specialty Equipment Not Enough Equipment 5 Why Subcontract

6 Expertise Don’t know or have the experience Don’t have the license Avoid dangerous work Don’t have the right insurance Work Loads Can’t make the time requirements 6 Why Subcontract

7 Location of Job  Too far away  Undesirable location 7 Why Subcontract

8 1.Only potential sub is a direct competitor 2.Customer expects you to do the work 3.When you need the revenue to cover overhead 4.Potential damage to site doing snow work 8 W HEN N OT TO S UBCONTRACT

9 How To Find Good Subs – Network – Newspapers – Yellow Pages – Internet – Tradesman 9 Q UALITY S UBS

10 Qualifying the Subs Insurance References Visit their jobs unannounced See proof of licensing Get size of company, equipment, history Competitively priced? Reputation Driving records Web sites Criminal & credit records 10 S UBS

11 Pricing Your Subcontract Work Pass through – no markup Sub gives standard price – conservative markup Sub gives volume discount you markup more Note: Beware of the really cheap price 11 P RICING

12 Requirements  General Liability including property damage  Workers Compensation  Auto liability – property & casualty  Inland marine coverage on equipment, tools, materials sub will have on site  Special coverage’s, i.e. snow plowing, tree work, pesticides 12 W HAT L IMITS S HOULD S UBS C ARRY ?

13 Assuring Quality Work 1.Written Specs 2.Meet & review work on the site 3.Have – on site supervision 4.Have work in progress meetings 5.Take the “pulse” of your customer 6.Have sub understand level of quality expected 7.Progress/final payment tied to your satisfaction 13 Q UALITY

14 Attaining Operational Success Communication is the key – Example 1.Alert sub of pending storm – from long range weather forecasts 2.Contact sub within 24 hrs before the storm 3.Contact within 4 hours before predicted start 4.Notify when to go 5.Require them to notify you upon arrival on job 6.Give them feed back after storms 7.Be sure to get all contact information from your sub 14 Operations

15 Protecting Relationship With Your Customer Prevent sub from talking with customer?  Be careful what information you share  Don’t confide confidential information  Consider having sub wear your uniforms  Consider putting your signs on their trucks  Inform your customer you may use subs  Your contract should have sub provision  *Video or pictures of all jobs pre-season 15 Your Customer

16 1.Consider setting safety requirement 2.Hold safety meetings & include subs 3.Be sure equipment on jobs is safely used 4.Consider checking OSHA ratings on subs 16 Safety

17 Relationships with Your Subs 1.Seek their advice 2.Set ground rules & expectations up front 3.Be friends but business is business 4.Pay your subs according to your agreement 17 Subs

18 Referrals from Subs Ask for referrals from their customers Refer your subs when appropriate 18 Subs

19 Dot All the I’s Some Contract Essentials N AMES, ADDRESSES, CONTACT NUMBERS W ORK SITE LOCATION D ESCRIPTION OF THE WORK S TART & END DATES AND ANY SPECIFIC TIMING C OST OF LABOR & MATERIALS OR PHASES OF THE WORK 19 Legal Aspects

20 Payments Signatures of those authorized to sign Special requirements Consequences for non performance Consequences for non payment Consequences for cancellation of contract 20 Legal Aspects

21 Guarantees Safety requirements Sub-contractor can not sub contract clause Non compete & confidentiality clauses Contractor (you) ability to sub clause 21 Legal Aspects

22 Q UESTIONS ? 22

23 Ed Laflamme LIC The Harvest Group 284 New Canaan Road Wilton, CT


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