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Project Delivery

Project Delivery
 
  Contract Employee or Sub-Contr...
July 26, 2012 9:44 AMMs. Kate Svob...
 

Contract Employee or Sub-Contractor?
From: Ms. Kate Svoboda-Spanbock, AIA, CID
To: Project Delivery
Posted: July 26, 2012 9:44 AM
Subject: Contract Employee or Sub-Contractor?
Message:
The only way to do this fairly (as someone who was on the other end of it for years) is:

Encourage the subcontractor to make it a real business.

They should do the work for a fixed fee for a specific scope of work.

They should charge twice as much for that fee as they want to take home.

They should work for whomever they want while your project is ongoing (although you may have some stipulations in your agreement as to how many hours they work on your projects per week or better, when certain benchmarks occur) and you should refer them to your friends as well.

You can then mark up their fee as you would any consultant - not tripling it as you would for an employee, but maybe adding 10-20%.

They need their own business cards because they are in fact running a business, and if anyone asks, they are your drafting or production consultant or simply assisting you.

Finally, encourage them to take a business practices class so that they will know what they are really getting into.

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Kate Svoboda-Spanbock AIA
Principal
HERE Design and Architecture
Los Angeles CA
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