Subcontracting - Cleaning Talk - Professional Cleaning and Restoration Forum
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post #1 of Old 04-09-2019, 02:44 PM Thread Starter
gcs
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Subcontracting

Pro's/Con's subcontracting?

I've had several larger company's call me in the last 2 years to bid on local jobs and up until today I have always turned them away. Today, I agreed to meet this Friday with a guy from ABM to bid a local clinic BUT I'm apprehensive about subbing any job. Some of my concerns are as listed below. Anyone with experience subcontracting please chime in, I need more insight from others in the business.

Concerns:

I've never subbed so I don't know exactly what to expect
Receiving payment ON TIME
Loss of profit due to middle man
Less control of the account

Are there any advantages to subcontracting? Will I be stuck in a contract if things go south?
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post #2 of Old 04-09-2019, 08:21 PM
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Being the middleman in my experience for the national services is never quite profitable. They're all different so it doesn't hurt to check it out.

To address your concerns (again it depends on the outfit) but on time payments usually happen, however they make you jump through hoops aren't typically are 60-90 days.
Yeah middleman, you aren't going to make nearly as much, the contractor takes the bulk.
You're a sub, you have no control. You do what the specs require. Most have the facility's manager check your work and sign off on it. It it doesn't clear payment is delayed.

If you need quick money just starting out they are good. You'll want a lawyer to go over the contract cause they aren't in your favor.
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post #3 of Old 04-15-2019, 04:09 PM
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They are basically acting as a franchisor and you can expect to make franchisor level profits. They are doing the sales and marketing plus developing the brand and reputation. You get paid for the operational aspects. Your profits go down but so do some of your costs. It could be a good fit if you run your business to fit the model. If you try to tack it on as just another customer you will hate it.

Aaron
Top Notch Windows
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post #4 of Old 04-19-2019, 03:02 PM
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gcs, thanks for the ? and thank you guys? for your answers. My ? about subbing would be "if the company asking to bid on a job is a cleaning company then why are they they asking me? getting paid would be an issue also, does the payment come from the local company or a corporate office somewhere else?
My experience has not been good when payments come from out of state corporate H.Q. / Office.
If the account was small perhaps I would consider it as a Test Case for possible future business and if they burned me then the loss would be small.
Brad BD janitorial
P.S. used to get calls from "placing companies" looking for janitorial services contractors to clean customers in my area and the "placing company" would then pay me for the service. Never pulled the trigger or went further than the phone call. Noticed that those types of calls have dropped of significantly to almost 0.
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post #5 of Old 04-19-2019, 04:56 PM Thread Starter
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Thanks for the information

I actually landed the job without subbing it lol the client fired ABM & hired us Just so ya know, I had nothing to do with that either. ABM was wanting me to subcontract a local facility & I told them I'd entertain the idea and meet with their project manager but the day before we were to meet the Building manager from the clinic called me and ask me to give them a bid. I was then told they fired the company for lack of performance and they wanted me to begin right away! Its a win win guys
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post #6 of Old 04-19-2019, 05:10 PM Thread Starter
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ps....The project manager from ABM told me if I bid the job for around $1000 a month they'd PROBABLY accept my bid. But if I bid the job for $1200 they most likely wouldn't accept my bid. He told me this after I had informed him I had never bid a sub job so I wanted to know how the bidding process goes.

If a client pays you good money to maintain their facility and you decide to sub it out do not pay substandard rates. Its simply not good for business. What's that old saying you get what you pay for, this is true and this will definitely send your client looking elsewhere.

It really ticks me off to know this company was paying their service provider good money and the service provider was making (if I had to guess) over 50% profit on the contract. I bid the job at double the rate I mentioned above and still landed the contract. The ladies in the clinic are extremely happy with our services. The medical clinic was absolutely filthy. Several staff members left us small notes telling us how much they appreciated our services and to please NEVER leave.

Even got myself a box of SUGAR COOKIES as a gift from the entire staff!

The big dogs don't always out perform us little pups

I will never franchise or subcontract, it takes away from the quality of the services or so that is my personal opinion

Happy Easter!
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post #7 of Old 05-17-2019, 10:21 AM
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tuantranbk

Quote:
Originally Posted by Mike Krall View Post
Being the middleman in my experience for the national services is never quite profitable. They're all different so it doesn't hurt to check it out.

To address your concerns (again it depends on the outfit) but on time payments usually happen, however they make you jump through hoops aren't typically are 60-90 days.
Yeah middleman, you aren't going to make nearly as much, the contractor takes the bulk.
You're a sub, you have no control. You do what the specs require. Most have the facility's manager check your work and sign off on it. It it doesn't clear payment is delayed.

If you need quick money just starting out they are good. You'll want a lawyer to go over the contract cause they aren't in your favor.
Thank you for the advice. Wish you all the best.
Cheer !
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post #8 of Old 05-17-2019, 10:24 AM
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Quote:
Originally Posted by Mike Krall View Post
Being the middleman in my experience for the national services is never quite profitable. They're all different so it doesn't hurt to check it out.

To address your concerns (again it depends on the outfit) but on time payments usually happen, however they make you jump through hoops aren't typically are 60-90 days.
Yeah middleman, you aren't going to make nearly as much, the contractor takes the bulk.
You're a sub, you have no control. You do what the specs require. Most have the facility's manager check your work and sign off on it. It it doesn't clear payment is delayed.

If you need quick money just starting out they are good. You'll want a lawyer to go over the contract cause they aren't in your favor.
Thank you for the advice. Wish you all the best.
Cheer !
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post #9 of Old Yesterday, 02:51 PM
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i think it's a question of money in the end.. if it's worthwhile for you or not..
Also if you are subcontracting with a big company more chances you get paid on time.
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