Hey guys and gals,
Im hoping I am posting this in the right place here, if not please forgive me and let me know where would be more suitable.
This winter I have an opportunity to sub contract my dump truck under a company that does snow removal. The charge up here is 100 dollars an hour for dump truck work. This company is saying that they pay out 85 dollars an hour, and charge 100, and its due to them being the main contract holders, so they want a piece of the pie.
Now I don't have a huge experience base with sub contracting under another company, and I didnt think thats how things worked. I have subcontracted a few guys to do work for me before, and I have always paid them whatever I was charging, for their portion of the work. Is 15 percent reasonable to take off the top?
Anyone have any insight on this as even if I do the work for 85 an hour I will make a few bucks, but 15 percent off the top for having the priviledge to work under this company seems like a fair amount to me.
Comments, advice, insight appreciated!
Sub Contracting
Discussion in 'Ask An Owner Operator' started by preppypyro, Oct 11, 2013.
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On the surface it's very fair. Way more than we get. We only collect 60 to 75% of the billables.
But your in a risky business so i need to know more before I can say....like who's plow is it? Liability ? When does time start and end?, at call? when you reach assigned road? And many more questions before I could say "fair".
JMOLSAgentOZR Thanks this. -
Thanks for the reply.
Basically its like this, I have a dump truck, they provide loading, I haul the snow away. I have my own insurance and yadda yadda.
Its all night work and Im not sure the exact hours, its sort of as needed when needed, so I guess that could be considered on call.
Also forgive me but Im not sure what you mean when you say "when I reach assigned road". -
most the time when i subcontract i get 90% of the billed amount.
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The deal is $85 per hour, plane and simple. What the contractor makes has nothing to do with you. Its as simple as is $85 per hour enough for you. They could charge $4000 per hour and pay $15, its just what the market will bear.
Ezrider_48501 Thanks this. -
you are correct cetane, its what your willing to work for. aether you are willing to work for 85 an hour or not.
were the % comes in. i have some people i sub contract for pretty regularly that pay at 90% but not all jobs threw the contractor are at the same rate one job may be billed at 115 an hour and the next at 100 an hour they quote me what they bill and i aether take the job or not.Cetane+ Thanks this. -
I assumed you were plowing not just working under the loader. That's different. So when does the clock start? At the pile or at the door?
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that is a good question. here standard on dirt work is pit to pile, start your time when you get to the pit, but you bill the time it would take to drive back to the pit after the time you drop your last load. some places will give you travel time from there yard to the pit and from the location back to there yard. every once in a while your get sub standard like say an hour from the pit to unload and they only give you 30 mins after you drop your last load. all these variables can make a couple 100 difference on your gross for the day on the same rate
another thing to ask is how many days to pay. -
in utah. the going dump rate is $65 per hour. for a 3 or 4 axle truck. but there's a company from phoenix (heritage trucking) also renting their 4 axle trucks with a 5th dump axle on the back for the same price. if there's a trailer hooked up. the additional cost is $15 per hour. $20 if you got a 4 or 5 axle trailer.
billable time is from job start to finish. once you get to the job or pit for first load. ends when you dump that last load. now, if there's excessive travel. they MIGHT get an extra half hour for up and half hour back. -
i won't be doing any dump work in utah then...lol
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