Subcontracting Fees and Hydro Seeding

[FreeRadical 45]

I was wondering how much you guys take (percentage) of the jobs you sub out. Most of the LC's around here keep 25% regardless of the amount or size of the job if they sub the work out. I have never had to sub out any work but may be faced with it now.

I got a call today from a real estate agent who is getting ready to develop 100 acres. They want pricing on all the major excavating including storm sewers, roads cut, curbs, etc. This is a major job, I do not have the equipment to do the work but I do know excavating contractors I can sub it to.

Any input from anyone who has had a job of this size will be a big help.

They also have 21-1/2 acre lots already under develpoment and want us to install the lawns and the plants after construction is finished. Does anyone have any info on where to buy hydro seeders and what do you suggest as far as brand? How much are you guys getting for hydro jobs in your areas?

Oh by the way, we got this referral from them seeing us working and the signs on our trucks. It pays to advertise guys and to look professional!!

Thanks
Ron

[Billz]

Well, in my area, I get 10% for subbed work...with the costs they are describing, it sounds like you will still make alot of money on this deal, I would be careful not to over-price them with the big 25% upcharge...

[Phil Nilsson]

My first impulse is that since you bring no "horsepower" to the job, that you partner (not) sub out ... hard to run the Kentucky Derby on a rented horse ... the way I would approach this because you have to expect lots of other bids ... before you talk to subs in detail if they are unaware of this site ... get them to sign a no-compete and then together work out the numbers. Maybe expect a low of 5% to a high of 10% for those items that you can't touch ... the 21 lots I would bid independent of the others. On the 21 lots since they're only 1/2 acre ... this might put you into a small hydroseeder ... look for used ... from a party that attempted to go full time 100% as hydroseeder and didn't "make it". There are plenty around who try to just do hydroseeding and quit it for lack of work. I think you'll save maybe 30% to 50% on a unit used a season or two.