Employees Vs Subcontractors

Welcome back friends for a 3rd installment!  Let’s talk about something that makes a HUGE difference for YOU, the consumer, when considering which contracting company to hire.  When you get a salesman to visit your home for a quote, ask them if their work is performed by their own employees or subcontractors.   Now here is where your poker face pays off.  Don’t except the first answer they give you.  We compete with many people that say they have their own “team” or their own 1099 employees.  Unfortunately, there is no such thing.  Just ask the IRS!  If you are employed by a company, you’ll remember that paperwork you need to fill out for your tax filing (dependents, married vs single, I-9, ect).  A person who receives a 1099 is a subcontractor.  Take a look at the highlights on the photo above. 

We just want to clarify.  There are a lot of companies out there who are very successful at utilizing the subcontractor business model.  There is absolutely nothing wrong with this model.  Just make certain that you choose what is right for your family, and you know what you’re getting and who it’s going to be performed by.  We’ve heard many stories about the topic and we would be happy to share over a cup of coffee.

We choose to do things a bit differently.  Why?  Years ago we saw the guy at the bottom getting paid a lousy flat rate to do work that is hard on the body.  We don’t think it’s fair.  In some cases the guy at the top makes all the money and the guy at the bottom gets squeezed and can’t afford to replace equipment or give his family a stable income.  We pay our crew an hourly rate (with benefits) so they are paid to care about you and your family.  This also means they are getting paid if something takes a bit more time to get it right.  How does that affect the price?  We work within the price quoted (assuming nothing is discovered or changed) for as long as it takes to get the project done, our crew make their same hourly rate.  Subcontractors on the other hand, are often motivated to get things done more quickly as their compensation is tied to a flat rate. 

It’s just who we are.

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