Saturday, November 15, 2008

What is a Sub-Contractor

What is a Sub-Contractor?

Carpentry Sub-Contractors are dependant upon others for their livelihood, and they are often not in a strong position to set their own pricing. They get the “Going Rate” for whatever their specialty is. Often akin to slave labor, as prices tighten up, so does their pay.

Woodwork and other types of Companies have been trending towards sub-contractors and contract positions to avoid offering benefits and the need to take deductions and remit them to the government. It allows them to offload many expenses like pension, benefits, unemployment, compensation etc.

They force the sub-contractor to get a compensation and legal clearance certificate prior to starting the job.

It is a fuzzy line to pinpoint the difference, but one thing for certain--being your average woodwork sub-contractor is not an enviable position to be in presently.

Governments have created new definitions that generally state that a sub-contractor that only works for one contractor or client is an employee.

Lets say that you have had a sub-contractor working pretty steadily for 3 years, but you really didn’t sign any contracts for each job. The sub-contractor just invoiced hourly, rather than spelling out any jobs and amount to be billed ahead of time. The sub-contractor didn’t actually work for any other contractors whether you knew it or not.

That sub-contractor is actually an employee in the eyes of the government.

They will hand you a bill for all the deductions and compensation that should have been paid on that employee.

GardenStructure.com doesn’t deal with sub-contractors and hasn’t for quite a few years.

We believe that a builder that has his name on the contract, his share of the profit and the pride of producing a work of art will always take more care and produce a better product than a sub-contract worker will.

Our builders on the whole get more referrals and produce more magazine quality work than any of our competitors do crew vs. crew.

We are presently gearing up for spring and do have areas available.

Click here for info about our Deck and Pergola Builders Group then get in touch with Lawrence Winterburn for more details at 888 293 8938.
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