Subcontractors vs Employees

[Account Closed]

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.

[Account Closed]

@Account Closed

That's a great  response and one I'll take to heart.  I guess there is an intermediary choice which is hire pros.  The problem with that is having enough consistent work to keep them.  I am very sensitive to not keeping a guy like that busy because he needs and deserves it.  I am generally hiring guys who aren't working on a regular basis anyway.  So when a house is done, so are they for the most part.  At least until the next project.  Hard to keep good help around when that's your situation.  If i run an ad for help in an area, I get calls every 30 minutes for that morning, of guys looking to do something that day, and that may be all I get out of them.  That being said, I have had some guys work for me for years, on and off.  

To your questions:

Does it really only take you 3 weeks to renovate a house? Sure for the said scope of work, and me in the mix.

Do you do a good job?   Good enough, and no more or less.  I sell houses in the 100k range and the less the price the less picky the buyers generally are.  Of course the more money the home, the more pickier they are.  The quality of work follows.

Do you pull permits? I follow your question relative to the post content but, not unless I absolutely have to.

 Are you licensed to do electrical and plumbing under your permit? I am not licensed.

Long story short, I really like your idea.  At least having one pro on the job and 2 laborers.;  I don't want to be painting houses on a ladder at 65;)