Bringing in a subcontractor can help you meet your deadlines and save costs. Reliable subcontractors take a load off your plate and let you focus on other elements of the project, too.
However, if you’ve been in the business world for some time you’re sure to have heard your fair share of subcontractor nightmare stories. Some folks get scammed by subcontractors who can’t really complete the task, while others have to live with subpar performance after making a hasty hire.
Do your research before taking on a new subcontractor and try to hire locals. This will reduce the risk of hiring a second-rate worker and will build your network in the town or city where you operate.
When to Bring in a Subcontractor
Bringing in a subcontractor can be a difficult decision to make if you’ve never employed workers on a fixed-term or contractor basis before. You’ll usually have to pay a premium for their services, but you won’t have to pay for things like health insurance or other benefits.
Ideally, you’ll plan to bring in a subcontractor before a project begins. This can help you avoid unexpected costs and will ensure that you can find a contractor who fits your needs. However, you may find that you suddenly need to reach out to a trusted contractor when a job goes wrong. Other common reasons for hiring a subcontractor include:
- Save costs by bringing in a subcontractor who will complete a niche job
- Your timeline is suddenly squeezed but you still need to deliver on time
- You do not have the skills internally to complete a given project
- You cannot afford to pay benefits for new hires
- You need to scale your operations on a project-by-project basis
These common reasons to hire a contractor are legitimate and will help you run a more profitable business. For example, if you run a maintenance business, but don’t have the budget to hire a fleet of gardeners, you may hire a few landscaping contractors instead.
Avoiding Scams
Unfortunately, the world of subcontracting is rife with shady contracts and scams. A quick search online will yield plenty of results for folks who say they’re willing to work for almost no pay. While these deals may look appealing, avoid the temptation to get in contact with cut-rate “contractors”. These shady folk might be running common business scams like phishing or engineering schemes. Educate yourself and stay ahead of these criminals when you do decide to reach out to a contractor, take care to protect sensitive details about your business. Some profiles may be running phishing frauds or social engineering scams. Double-check prospective contractors’ credentials before giving out any information that could be used against you or hire local, well-reviewed contractors to avoid any risk of manipulation.
Hiring Local
The best way to find reliable, trustworthy contractors is to hire locally. Local folks understand the area, too, and can provide expert insights that will improve the project you are working on. Other reasons to hire local subcontractors include:
- Good PR: Local folks want to support firms that support the local economy. Partnering with local contractors can support a word-of-mouth flow of business toward your company, too.
- Community Insight: Local contractors can speak honestly about how your business is perceived in the community. This is invaluable if you’re new to the area or are looking to expand.
- Stable Workforces: Hiring local contractors can improve your next recruitment drive and convince folks that you’re a great business to work for.
- Simple Onboarding: Unlike full-time hires, contractors are easy to bring on. They usually have experience completing the tasks you assign to them, too, and may even exceed the performance of your full-time employees.
Hiring local contractors can clearly save you time and money. Bringing in folks who live in the same city or town as you can also help you develop important business connections. This can help you connect with more exclusive clients who may share a mutual connection with your contractor.
If you do decide to hire local, treat your contractor like a customer. Make sure they have all the right tools for the job and are reimbursed fairly for the work they complete. You don’t want the town’s most respected contractors to speak poorly about your firm and shouldn’t overlook the power of word-of-mouth advertising.
Conclusion
Hiring a subcontractor can reduce your operating costs and help you meet demanding timelines. Bringing on a fleet of subcontractors can help you scale your business more effectively, too, meaning you won’t be left with unaffordable wages when business is slow.
Protect your business by hiring local contractors whenever possible. This will reduce your risk of being tricked by scammers and will improve your standing in the community. Just be sure to work with folks who are well-reviewed and make sure your contractors are treated well during their time with you. This will boost your brand image and ensure you get that bathroom remodel completed on time.