Managing subcontractors tips

Managing subcontractors tips

Investor · Ellicott City, MD · Member since 2014 · 21 posts · 2 votes

My husband and i have successfully completed two flips with a help of general contractors. Two different GCs, one was one, the other was not. But with fairly good margins we were able to profit on both. So naturally we decided to up the game and manage our own subs. We are also focusing on building a rental portfolio and doing fewer flips. The challenge comes not so much to finding people willing to work on our terms (pricing, payment upon completion of a task and learning some time saving techniques) but rather being able to hold/keep them long term. We have an ability to provide continuous work since we have 3-4 houses under construction. Always pay on time, as agreed. Our guys seemed to be happy ... until one day they simply didn't come to work and stopped answering the phone. We try to communicate their challanges and make sure the process works for all of us. But still they leave and we don't know why. I would appreciate any tips from experienced GC on building teams that last longer then a few months. Right now we have some guys who like to be paid per day and some being compensated per task.

1Reply
46 views

Most Popular Reply

Contractor · Denver, CO · Member since 2009 · 399 posts · 166 votes
7y

The trades market is booming right now. If you are beating down subs on their price or taking the cheapest labor that comes around. They're either going out of business or ditching your work for better paying work. Find good subs, don't beat them up on price and pay them quickly. 

See this reply in the discussion

4 Replies

Jump to latestLatest
  • Investor · Ellicott City, MD · Member since 2014 · 21 posts · 2 votes
    7y

    * typo: one contractor was great, the other was not.

  • Contractor · Denver, CO · Member since 2009 · 399 posts · 166 votes
    7y

    The trades market is booming right now. If you are beating down subs on their price or taking the cheapest labor that comes around. They're either going out of business or ditching your work for better paying work. Find good subs, don't beat them up on price and pay them quickly. 

  • Interior Designer/Real Estate Investor · Eugene, OR · Member since 2013 · 168 posts · 91 votes
    7y

    @Emilio Ramirez is absolutely right.  Contractors are back to picking and choosing the jobs they want to do and getting paid top dollar to do it.  If you continue to beat them up on pricing rthey will move on to better paying work every time and not come back to you until they need a "paycheck" vs a profit.

  • Contractor · Erie, CO · Member since 2019 · 4 posts · 2 votes
    7y

    I would add one comment, that having signed agreements with your subcontractors is critical.  Having performance agreements, schedule agreements and payment agreements all spelled out will help keep them on the job.  It may deter some from ever showing up/bidding your projects, but as @Emilio Ramirez stated, you want good subs, so you may need to be willing to pay a little extra.  

    Good Luck.

Join the conversationCreate a free account to reply, vote on answers and follow this thread.