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#155564 - 01/16/05 04:53 PM Sub Contracting
ToHo Offline
Member

Registered: 12/29/04
Posts: 46
Loc: N.Y.
I reiceved a call from a local home center and was asked if I would do there electrical installs for them. They want to use a lisenced electrical outfit. I guess in the past they had a handy man doing the electrical installs. The oppurtunity does'nt seem bad. If nothing else its good expsure for the company.I was wondering if anyone had any experience dealing with this type of sub contracting. Thanks... ToHo

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Business, Office, Estimating, Legal:
#155565 - 01/16/05 05:12 PM Re: Sub Contracting
Electricmanscott Offline
Member

Registered: 01/12/02
Posts: 1478
Loc: Holden, MA USA
I have not done this but what I have heard of it are higher than normal insurance requirements.

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#155566 - 01/16/05 06:39 PM Re: Sub Contracting
nesparky Offline
Member

Registered: 06/21/01
Posts: 650
Loc: omaha,ne
I looked into this a while back. Check out the pricing the home center gives out vs what they will pay you. I found out that the ones I looked at had low ball prices for your work and kept 45% of that price as a fee for getting you the contact. there was no money in the jobs for overhead or profit. If you like working for less than you pay 2nd or 3rd yr apprentices this might appeal to you. But if you want a profit you have to tell the home center that all the install prices will be set by you and they will only get a set price for each referal that results in a signed contract not just a contact.
_________________________
ed

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#155567 - 01/16/05 07:22 PM Re: Sub Contracting
slumlordworker Offline
Member

Registered: 12/20/03
Posts: 88
Loc: south bend indiana
i looked in to it and the insurance requirement was just too high for me at the time also one company wanted everybody in my company to be drug tested have a criminal background check on file do a credit check and everyone was suspose to have name badges. sounded like a crock of crap to me plus some of the advertized prices they offer are so low u would have to be a hack living on the streets to work for that rate

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#155568 - 01/17/05 04:13 PM Re: Sub Contracting
Electricmanscott Offline
Member

Registered: 01/12/02
Posts: 1478
Loc: Holden, MA USA
You have to be kidding. Drug testing, criminal background check, name badges, a crock of crap? Sounds perfectly reasonable to me.

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#155569 - 01/17/05 04:39 PM Re: Sub Contracting
Wirenuttt Offline
Member

Registered: 11/10/02
Posts: 267
Loc: Massachusetts
I had just given a guy that worked in the electrical dept of the big box store my business card. He gave my number out to anyone who asked for an electrician. It was private no involvement with the stores policies.

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#155570 - 01/17/05 04:44 PM Re: Sub Contracting
Joey D Offline
Member

Registered: 10/10/03
Posts: 263
Loc: Arlington MA U.S.
I wire hot air furnaces for a company that gets the jobs from Home Depot. I think they pay a 10% fee of the job back to the Depot. They charge what they want to so it works out.

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#155571 - 01/17/05 06:45 PM Re: Sub Contracting
Active 1 Offline
Member

Registered: 02/22/03
Posts: 684
Loc: Grayslake IL, USA
I don't think I would want to sub for the big stores because I don't see them as a partner but an enimy.

A NEW HOME DEPOT OPENS EVERY 48 HOURS!!!
HD HAS 7,000,000 IN SALES EVERY HOUR!
http://www.gsb.stanford.edu/news/headlines/vftt_nardelli.shtml

HD OPENED IT'S 1,000 RENTAL DEPT IN 2004! http://rermag.com/Home_Depot_1000_121304/

HD buys Lightmor Canidas largest lighting distributor. One of many planned acquisitions, aimed at taking a bigger bite of the estimated $100-billion-a-year commercial building supply sector.
http://www.theglobeandmail.com/servlet/ArticleNews/TPStory/LAC/20050106/RHOME06/TPBusiness/Canadian

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#155572 - 01/17/05 07:18 PM Re: Sub Contracting
Dave55 Offline
Member

Registered: 05/08/04
Posts: 666
Loc: Crystal Lake, Illinois, USA
I read a poster at the local supply house that said, "We will never compete with you". It showed an ad of HDs for installations of ceiling fans, etc.

Personally, I'm not very fond of kick-backs.

Dave

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