All,
I am currently an estimator for a asphalt paving company. We submit bids and subsequently do a bunch of jobs for companies that advertise themselves as "Paving Contractors", but are really more of a construction manager that simply has the client, takes our price, and adds 10-30% to it. They are basically a middle man. Do any of you operate in this fashion? I am thinking of starting a lawn care company with the focus on commercial sector. I plan on keeping my current job so I only want to take on 10-15 hours of mowing a week that I will actually self-perform. What I want to try and focus on is growing my clientele and subcontracting much of the work...... Snow Removal, Landscape designs & installs, Plant and Tree Maintenance, fertilizer & chemical spraying, ect.
I would also advertise and do the same thing for pavement maintenance/ parking lot maintenance (asphalt repairs, striping, sealcoating, catch basin repairs, curb repair ect.)
My thinking is even if I do not make much money on some of the stuff I subcontract out, by just having the client and serving as their one stop shop for all grounds and pavement/parking lot maintenance I will be presented with opportunities that allow for some decent profit.
It is not uncommon for us to bid an asphalt job for $20K and our competition submits a price that is either lower for $15k or higher at $30k. That leaves a lot of room to do what I am describing. I would solicit several quotes from dependable contractors that I have built up a good working relationship with, take the lowest quote, mark it up and in many cases still be cheaper than the highest quote. So....lets say for example I get three quotes for some asphalt repairs, they come in at $16k, $20k, and $21k.
I add $3k to the $16k quote and make $3k for a little time and effort and a little risk.
Obviously you would need a good subcontract agreement that would transfer as much risk and liability to the subcontractor as possible.
Do any of you do some of this or even subcontract any of the work your customers need done?
I am currently an estimator for a asphalt paving company. We submit bids and subsequently do a bunch of jobs for companies that advertise themselves as "Paving Contractors", but are really more of a construction manager that simply has the client, takes our price, and adds 10-30% to it. They are basically a middle man. Do any of you operate in this fashion? I am thinking of starting a lawn care company with the focus on commercial sector. I plan on keeping my current job so I only want to take on 10-15 hours of mowing a week that I will actually self-perform. What I want to try and focus on is growing my clientele and subcontracting much of the work...... Snow Removal, Landscape designs & installs, Plant and Tree Maintenance, fertilizer & chemical spraying, ect.
I would also advertise and do the same thing for pavement maintenance/ parking lot maintenance (asphalt repairs, striping, sealcoating, catch basin repairs, curb repair ect.)
My thinking is even if I do not make much money on some of the stuff I subcontract out, by just having the client and serving as their one stop shop for all grounds and pavement/parking lot maintenance I will be presented with opportunities that allow for some decent profit.
It is not uncommon for us to bid an asphalt job for $20K and our competition submits a price that is either lower for $15k or higher at $30k. That leaves a lot of room to do what I am describing. I would solicit several quotes from dependable contractors that I have built up a good working relationship with, take the lowest quote, mark it up and in many cases still be cheaper than the highest quote. So....lets say for example I get three quotes for some asphalt repairs, they come in at $16k, $20k, and $21k.
I add $3k to the $16k quote and make $3k for a little time and effort and a little risk.
Obviously you would need a good subcontract agreement that would transfer as much risk and liability to the subcontractor as possible.
Do any of you do some of this or even subcontract any of the work your customers need done?