Sub-Contracting

[LJH09]

Hi,
I'm not sure if this question is on the right part of the forum, apologies if not.

I have a gardening business. A lot of my customers ask me to do patios and bases for outbuildings, which I don't have the time or capacity to do. I've recently been passing these jobs onto a local firm, who do the work off my recommendation. However, it's now got to the point that I'm passing around 2-3 jobs a week to this company, where they now have very little advertising to do, as I'm finding the majority of the work for them. I'd like to expand this to another company/sole trader and have someone in mind, but wondered if there was a way I could sub-contract and charge a percentage of what they earn from the jobs as a type of commission? I don't particularly want to move to employ someone myself as my business is still in relatively early stages. I can't seem to find anything about it online or what to look for.

Opinions and recommendations would be really appreciated.

Thanks

 

[Mark T Jones]

There is no reason why you can't do that, I'd suggest that you make everything clear & open.

There are a number of approaches as to how you structure a deal - Personally I favour reciprocity over commission (wherever possible) - IMO it makes things 'cleaner'.

 

[SERC1204]

Keep in mind how you refer the work on. If you go down the sub-contractor route, the customer's agreement is with you and you therefore bare that responsibility.

 

[BubbaWY]

Keep in mind how you refer the work on. If you go down the sub-contractor route, the customer's agreement is with you and you therefore bare that responsibility.

Id agree with this. Id suggest keeping it as simple as possible - maybe an agreed percentage of every job you pass on as opposed to the customers agreement being with you.

 

[JEREMY HAWKE]

A sub contractors agreement is always a good idea
Cost each job individually

 

[pentel]

However, it's now got to the point that I'm passing around 2-3 jobs a week to this company, where they now have very little advertising to do, as I'm finding the majority of the work for them.

Agree a commission with them for each job. You pass the enquiry on to them, they pay you for each lead / job.