*
I own a small insulation company and when I see a house under construction I always stop and try to drum up some business. I have found that you can advertise till the cows come home, but you just can’t beat the personel call. Anyway, many of the homes in our area are built by owner builders. Some of these people are not the best informed and have no idea who all of their subs will be even after they start. Often times I am asked if I “know” anyone.
As a former GC I know about all phases of residential construction and how to estimate. I was thinking,while I am there I might as well offer all the services I can. I could line up subs in trades that usually charge by the unit like drywall, masons, painters, flooring and get a per unit price from them and then sell their work at a higher price.
I figure it might be worth it to the subs to reduce their prices to me a little because they do not have to deal with the customer(so no estimates and collections)and I may find work that they never would have had anyway. It would really be good for the tradesman that did good work but was just starting out and did’t have a following, or a person experienced but new to the area. Of course I would only use reputable people that did good work.
I am not looking to get rich at this because it is only a “side” job, but I want to be compensated fairly. Is there any way that I can give the homeowner/contractor a reasonable price as well as pay the sub a wage that is not killing him. I would get the jobs and collect the money and make sure the customer is satisfied. What would be a reasonable fee for me 10%, 20%? What are your thoughts?
Discussion Forum
Discussion Forum
Up Next
Video Shorts
Featured Story
The RealTruck AMP Research Bedsteps give you easy access to your truck-bed storage.
Featured Video
Video: Build a Fireplace, Brick by BrickHighlights
"I have learned so much thanks to the searchable articles on the FHB website. I can confidently say that I expect to be a life-long subscriber." - M.K.
Replies
*
lynne
Do the words General Contractor or Project Manager ring any bells?
Vince
*For the owner builder this would be great. It would be like hiring a GC for only the trades you don't want to do the work yourself or the trades you are having a hard time finding subs for. The price you give the owner builder probably wouldn't be much more than what the sub gives to the owner builder direct, since you are getting cheaper prices up front, so it sounds like a win-win situation. The sub gets the work and is working for a GC/PM that refers them to other jobs, the GC/PM makes a small profit but is not involved in the entire process and the owner builder gets a part time GC for the trade but doesn't have to pay any extra fees on top for the whole project.Even Better:I would just market myself to the owner builders as a building consultant that finds subs for free/no obligation. Have the subs pay you a finders type fee and in the process ( the owner builder will have questions or want your opinion on issues) you bill out your time at a high hourly rate to the owner builder for any consulting that you do for them. Probably a great little niche in the right location.
*i no estimates and collectionsThat means that you are putting yourself in the middle and responsible for warrenty work and paying the sub, but not the overall profit or being there regulary to manage the sub's.I think that Sean has a much better idea. You charge a consulting fee and stay off to the side.
*The referral fee is the way to go or you'll be in the middle of all the misunderstandings and headaches. Do it thew other way and you are a general with all the liabilities, insaurance, licenses, etc. Talk to a lawyer first to do it that way.
*Just a note . As a sub I would INCREASE my price to do owner/builders. One offs all the time, they never have a chance to learn the system, problem w/recievables (owner/builders underestimate what it takes to build and run out of money at the end), they make many more mistakes/corrections. Owner/builders are trying to do what a contractor has done for 10/20 or 30 years. There is a knowledge base that is built up by error and near error or by working w/subs. This cannot be duplicated by an owner/builder on the first house. They can build a house and it will be fine most of the time, but a builder that does it full time is much better. In our area there was an Owner/builder school for a few years. We did just a few jobs for them and ran into many problems. We declined work from them after about 1 year. They faded away after a couple more years. Their office basically took a few from homeowners to set them up w/contractors. I suppose they had a program to teach the homeowners "how" to do it. Could work on some level. But make it a full time job, not a side job if you are going to do it well.
*
I own a small insulation company and when I see a house under construction I always stop and try to drum up some business. I have found that you can advertise till the cows come home, but you just can't beat the personel call. Anyway, many of the homes in our area are built by owner builders. Some of these people are not the best informed and have no idea who all of their subs will be even after they start. Often times I am asked if I "know" anyone.
As a former GC I know about all phases of residential construction and how to estimate. I was thinking,while I am there I might as well offer all the services I can. I could line up subs in trades that usually charge by the unit like drywall, masons, painters, flooring and get a per unit price from them and then sell their work at a higher price.
I figure it might be worth it to the subs to reduce their prices to me a little because they do not have to deal with the customer(so no estimates and collections)and I may find work that they never would have had anyway. It would really be good for the tradesman that did good work but was just starting out and did't have a following, or a person experienced but new to the area. Of course I would only use reputable people that did good work.
I am not looking to get rich at this because it is only a "side" job, but I want to be compensated fairly. Is there any way that I can give the homeowner/contractor a reasonable price as well as pay the sub a wage that is not killing him. I would get the jobs and collect the money and make sure the customer is satisfied. What would be a reasonable fee for me 10%, 20%? What are your thoughts?