# Subcontractor pay



## GrassRoots (May 26, 2013)

Thanks to all the people involved for this website! I have found a wealth of knowledge and tips here in the past few weeks. So, here is my question to all the veterans. I have started as a sub. I've only been doing this work for about two months. It has its pros and cons already. The concern I have is with the pay. The State contractor has agreed to pay me 50% of the bid for doing the work. My labor cost and supplies have to come at my expense out of the 50%. He says he gets 25% for the paperwork aspect of this business, and the National company is getting the other 25%. Is this typical practice, and if so, what should be my future goals to set myself up as a State contractor instead of a Sub?

Thanks in advance!


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## PropPresPro (Apr 12, 2012)

GrassRoots said:


> Thanks to all the people involved for this website! I have found a wealth of knowledge and tips here in the past few weeks. So, here is my question to all the veterans. I have started as a sub. I've only been doing this work for about two months. It has its pros and cons already. The concern I have is with the pay. The State contractor has agreed to pay me 50% of the bid for doing the work. My labor cost and supplies have to come at my expense out of the 50%. He says he gets 25% for the paperwork aspect of this business, and the National company is getting the other 25%. Is this typical practice, and if so, what should be my future goals to set myself up as a State contractor instead of a Sub?
> 
> Thanks in advance!


First: Nothing is typical in this business anymore!

Second: Welcome to PT! Head on over to the Introductions section & tell us a little about yourself. Some of us here don't like to talk to strangers! 

Third: No need to post the same thing in multiple threads, we'll see it the first time, really.


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## GrassRoots (May 26, 2013)

First: I'm beginning to see that everyone has their own way of doing business.

Second: Understand the strangers thing. Just posted an intro. I'm no spy or anything. I'm just rookie looking for a little advice. Not trying to stir anything up.

Third: sorry, I will restrain my need for answers to one thread.


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## Craigslist Hack (Jun 14, 2012)

GrassRoots said:


> First: I'm beginning to see that everyone has their own way of doing business.
> 
> Second: Understand the strangers thing. Just posted an intro. I'm no spy or anything. I'm just rookie looking for a little advice. Not trying to stir anything up.
> 
> Third: sorry, I will restrain my need for answers to one thread.


That is roughly how some people do it. Typically if you want to be the guy working directly for the national you need to cover the entire state.


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## ontimepres (Jan 4, 2013)

I will respectfully disagree, to work directly for the national you do not need to cover an entire state. Most (ok several that I know of) nationals have their own pre-determined service areas you need to commit to in order to come on board ... that's when and if you can manage to get yourself in front of them.


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## Craigslist Hack (Jun 14, 2012)

ontimepres said:


> I will respectfully disagree, to work directly for the national you do not need to cover an entire state. Most (ok several that I know of) nationals have their own pre-determined service areas you need to commit to in order to come on board ... that's when and if you can manage to get yourself in front of them.


Ok there are no good ones, but the better ones want this.:whistling2:

if you want to work for Scamguard or some other lowball outfit sure you can cover 3 counties and do $40.00 grass cuts and get $20.00 a cube. I don't know of any that pay $50.00 a cube, and $100.00 for a grass cut that are talking to guys that only cover regions of a state. I could be wrong please enlighten me.


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## Gypsos (Apr 30, 2012)

Craigslist Hack said:


> Ok there are no good ones, but the better ones want this.:whistling2:
> 
> if you want to work for Scamguard or some other lowball outfit sure you can cover 3 counties and do $40.00 grass cuts and get $20.00 a cube. I don't know of any that pay $50.00 a cube, and $100.00 for a grass cut that are talking to guys that only cover regions of a state. I could be wrong please enlighten me.


 
I do not know of any of them that pay $50 per cube or $100 for a grass cut regardless of your coverage area. Please enlighten me on that one.


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## GTX63 (Apr 12, 2012)

Those type of rates don't exist with preservation companies anymore. Those are private client rates.
Some companies will assign you to a county(s), or zip codes, "zones" and yes, statewide in cases.


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## BRADSConst (Oct 2, 2012)

Gypsos said:


> I do not know of any of them that pay $50 per cube or $100 for a grass cut regardless of your coverage area. Please enlighten me on that one.


I have heard of 1 company that pays almost HUD rates. However, the volume is extremely low and the due dates are extremely tight.

I have yet to see one in my area so I can't speak first hand for the validity of the above claim.


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## STARBABY (Apr 12, 2012)

5 Brothers and NFR both pay $50 CYD,but both will adjust your (HUD BS thing)


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## Craigslist Hack (Jun 14, 2012)

STARBABY said:


> 5 Brothers and NFR both pay $50 CYD,but both will adjust your (HUD BS thing)


There are a couple of others that can be added to that list but they have low Volume as someone stated. 

Just to clarify they pay HUD -20%.


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## GrassRoots (May 26, 2013)

Craigslist Hack said:


> That is roughly how some people do it. Typically if you want to be the guy working directly for the national you need to cover the entire state.


So, as a rookie in this industry 50% of the bid is what would be the arrangement normally? If/When I set up to the plate and proceed to acquire my own contracts with the national, do they take 25% of the bid price as a fee or something?


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## PropPresPro (Apr 12, 2012)

GrassRoots said:


> So, as a rookie in this industry 50% of the bid is what would be the arrangement normally? If/When I set up to the plate and proceed to acquire my own contracts with the national, do they take 25% of the bid price as a fee or something?


25% Seems a little high, not saying it doesn't happen but at the national level 10% is more consistent with what I'm seeing on maintenance orders and bid approvals.


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