Currently, I am a sub contractor for a Cable tv installation company. I am in tech school to learn electrical mechanics. Most of the career questions I ask here are for research, so that I can explore my diffrent options for the future. I was just curious if contractors use sub contractors for electrical purposes.
So how do you work out the sub's invoicing? Is he paid piece work? I would like some examples. I know that there is going to be a difference from area to area and so forth, but I should be able to get a generalized idea.
#33561 - 01/25/0406:35 PMRe: sub contractor electrician
I would think you would pay them by check, straight time. Submit a 1099 at the end of the year and explain to them that they are responsible for their own taxes. Depending on how much they work for you , it might be a good idea for them to do quarterles to help ease the amount of taxes owed plus advise themselves to think of proper deductions.
[This message has been edited by Wirenuttt (edited 01-25-2004).]
#33562 - 01/26/0402:22 AMRe: sub contractor electrician
Electrical Subs being hired by an EC (a sub themselves) is not a new consept.
It used to be very commonly done when an EC needed someone to install Feeders through an existing Parking area, into an existing PoCo Vault. The Sub'ed EC doing this would be "Approved" by the local PoCo to enter the Vault. That same sub would hold the liability to pass Inspections.
Now with the current increases in LANs, Security/CCTV, etc., the EC becomes more of a "Technical Systems GC" - and farms out what ever installations which are beyond the capabilities of that "GC EC".
Even heard of some ECs farming out "Normal" work, just to keep jobs on track.
Something commonly farmed out (common to me...) is Saw-Cutting. Once in awhile, Demo gets farmed out.
Being a Represenative / Consultant for a GC, I got to be involved with many Sub Contractors - including Electrical Contractors - on many Projects.
Oh, I forgot Lighting Fixture Suppliers and Gear Suppliers - they are Subs too!
Scott " 35 " Thompson Just Say NO To Green Eggs And Ham!
#33563 - 01/27/0412:31 AMRe: sub contractor electrician
You have to be careful to make sure that all your subs have the appropate business licenses, insurance and regristrations. I know of at least one EC who did not do his paperwork correctly and IRS got him for back wage withholding, back social security contributions, then his insurance co wanted back work comp payments. Just dot the i's, and cross the t's. I record there pay as a vendor's bid price for the work they do.