Being a Subcontractor
Advantages
- Steady work flow
- Less marketing needed
- Simpler administration
- Learn from established businesses
Considerations
- Lower rates than direct work
- Less control over schedule
- Dependent on head contractor
- Payment timing issues
Hiring Subcontractors
When to Use Subs
- Specialized work outside your license
- Overflow work
- Skills you don't have
- Large jobs requiring more labor
What to Check
- License and qualifications
- Insurance (get certificate)
- ABN and tax compliance
- Quality of previous work
Contractor vs Employee
Sham contracting is illegal. True contractors:
- Control how they do the work
- Can work for others
- Provide own tools
- Bear risk of loss
- Quote for the job
Subcontractor Agreements
Always have written agreements covering:
- Scope of work
- Price and payment terms
- Timeline
- Insurance requirements
- Quality standards
- Defects liability