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Updated about 9 years ago,
Subcontractors vs Employees
Back in NY I was setup with a workers comp policy and had a handful of guys who worked for me. I used them for flips and rentals repairs. Since then I have moved to Pa and need to come up with a new solution. As I see it I can do 1 of 2 options, setup a new workers comp in Pa or use subcontractors.
I have only used subcontractors on a handful of occasions, siding and roofs only. With my employees I would act as manager and have anywhere from 1 to 3 guys working with me. I would do all the electrical and plumbing and trim work, while they did the basic tasks like cleaned and painted.
Now I am working full time as an investor and need to ramp up my workforce and get more done quicker.
As an employer I was paying my guys around 13/hour and the overall cost was small. The problem with this approach is I am inconstantly baby sitting them and still stuck doing half the work myself.
The problem I would expect to see with subs, is they are expensive and harder to control.
I am sure some of you have been in my situation and I would like to know what you did to take your business to the next level.
Thanks.