I help mid-sized builders Improve Business Operations. Good operations are key, but upgrading and implementing new strategies takes time and experience.
Should general contractors build a crew or hire subs? In my opinion, subs are a more intelligent choice Part of this is selfish; employees increased my stress level, and I did not need any more stress. My mindset was different when I hired subs for everything. Subs can be challenging to manage, that's true, but employees have their own management issues. Along with benefits, HR issues, payroll, and WC insurance. Subs are focused on their niche and get really good at their trade. To grow, I find more subs or help them grow with me. Bad sub? Don't hire them again; find a new one. Hiring and firing are expensive and can be legally complicated. I prefer to hire good managers; they manage subs, not the crew. I have gone as far as hiring out my project management to 1099 contractors by the job. Which do you prefer and why? #businessblueprint
I would say either way works depending on the project type and scope you have to deal with. For simple privately owned projects going with a home base team or employee should help maximise your profit margin, and reduce some stress, but subs may greatly affect the profit in such projects. But when you have a massive capital projects, subs truly can help you do wonders, especially those who understand what their niche is and know how to align that with your goals. Team of in-house employees in my opinion would come with a whole lot of managerial issues. But your higher ups managers in either case should be team members you can trust and count on.
I personally 100% agree with this post. It takes time to find the right subs but when you do, you build a team of professionals. And in my eyes and experience a team is way more efficient and effective then a crew
Drew Throndson
9mo
It is a case by case basis. Clients\owner may not want to see subs for all scopes. It takes serious time and effort to find and fund crews to perform quality work. Where you maybe able to find a top of the line, extremely costs effective and faster subcontractor crew to hire. You want to provide best quality that exceeds client expectations . Always have back up plans that may work better than top end crew performing.
Jerry Aliberti
9mo
Pushing the risk on subs would be an ideal option for myself BUT it comes with consequences. Which are less control of schedule and more cost to bid. Pros and cons to both, but not having to worry about the increased payroll may offset alot.
Benny Johnson
9mo
We do not self perform any work, and use both employees to manage subs. We do have one contract superintendent though.
Ben Wilson
9mo
Pros and cons to both, currently with my personal goals I sub most work to fit that, but as with everything, it’s situational
Ian Verrett
9mo
Duane, I am in agreement with you. I prefer to sub contract out all work. This choice, for me, has lowered my stress level, while also increasing my income.
Japheth Parkash
9mo
The very process we are going through now. Have 4 trades we are doing currently on a major multi family project and planning to make a small 3 to 4 man team to handle part of a trade and act as a punch crew. But lot easier to use subs especially if one travels for couple of hours for commercial work
I help mid-sized builders Improve Business Operations. Good operations are key, but upgrading and implementing new strategies takes time and experience.
9moIn my experience, larger companies sub out their work, and the bigger you are, managing large crews becomes a job on to itself.