Hiring permanent workers will always be a necessity, but subcontractors are also a necessary part of the construction industry. There are many advantages to hiring a subcontractor versus a permanent employee. This article will name a few reasons why it may be better to contract work out to a subcontractor.
Our Jacksonville construction lawyers understand the nuances of working with subcontractors and highly recommend working with reputable subcontractors. To get started, connect with a Jacksonville contractor lawyer to draft the appropriate contract agreements to ensure your business relationships get off on the right foot.
For Short-Term or Large Projects
For larger projects, it is common to hire a subcontractor with a specific skill set to take on aspects of the project that you are not particularly skilled at or you do not have the manpower available to execute. Instead of passing on more complex projects, tap into the expertise of a subcontractor to get the job done. Additionally, you’ll gain more flexibility since the contract is not a long-term commitment.
To Increase Productivity
Considering that subcontractors specialize in a particular field of construction, they are able to perform the work more efficiently which speeds up that aspect of the project. Subcontractors can lessen the general contractor’s need to spend time on the site by taking care of the secondary tasks allowing the contractor to focus on their core tasks.
To Cut Costs
Contracting with a subcontractor rather than hiring a permanent worker can be more cost effective. Since a subcontractor is not your employee, not only will you have less legal liability, your overhead costs will be lower because you will not have the burden of the typical expenses that come with hiring employees such as employee taxes, vacation, insurance, and sick time. Additionally, subcontractors typically use their own equipment which means less wear and tear on your equipment.
Hiring a subcontractor is a case-by-case decision. One thing is certain, building a quality network of subcontractors can open the door to many more lucrative opportunities for your business.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.