Why You Should Use Subcontractors On Your Classic Car

When making a decision to perform restoration on a car, many hobbyists ask themselves whether they should do all of the restoration and repair work themselves or whether they should farm it out to subcontractors. The benefits of restoring a vehicle by yourself is attractive for many reasons. From a financial standpoint, you will save a lot of money by doing the work yourself. Ego enters into the decision also. You will be able to point with pride to your restored auto and take the entire credit for rebuilding it. Doing the work yourself also lets you do the work exactly the way you want it done. You know that you won't be taking any shortcuts to get the work done and can be assured that the work quality will be of the highest caliber.

But, realistically, the great majority of us do not possess all of the skills necessary to perform each restoration task that may be required on a restoration job. How many of us can perform with expert skill the upholstery, welding, painting, or mechanical work that needs to be done? At some point most restorations will require an expert's touch that is beyond your level of expertise.

So what do you do? What most amateur restorers do, more than will admit, is to outsource some of the more specialty work to a subcontractor. And if you do it correctly, it's an investment and tradeoff well worth making.

There are certain guidelines you should use in selecting a subcontractor if you want to get the best work possible from them.

If at all possible, avoid hiring a subcontractor out of his area of expertise. If you need an expert on 1940 Ford engines, don't hire a general mechanic who dabbles in engines. Instead, look for a subcontractor that is an expert in working with Ford engines from that general era. Can't find one? Then look for a subcontractor in Ford engines overall. The bottom line is try to find a subcontractor who is used to working with components on the specific classic car that you own.

If you have not previously worked with a subcontractor, you will want to see actual examples of his work. Photographic can be doctored and are therefore not reliable. If you're not satisfied with the quality, continue your search.

Get 5 or more references from satisfied customers. Call them and talk to them. Ask about the timeliness and quality of the work they received and any other concerns that you may have.

Once you find and decide upon a subcontractor, ask him for a written detailed work, price, and time estimate of the work that you are asking to be done. If he is not willing to give you a "written" estimate, you should probably pass on having him do the work.

Be sure to ask about warranties on their work. You may or may not be able to get a warranty on parts. But a confident subcontractor will have no problem guaranteeing his level of work.

Don't look at subcontractors as a necessary evil. Instead look at them as partners. Subcontractors can be a great asset to you and potentially save you loads of time. And in many cases the use of subcontractors may be the only way you can get your auto restoration finished.

Carl Phllips writes car restorations articles such as classic car pricing and classic car value. Please visit his site for additional contributions.

It's That Time of Year Again!

And no I am not referring to holiday cheer, parties, gifts and the like. And not even ringing in the New Year with its associated celebrations and resolutions. But, as all you bookkeepers and accountants are aware, year end for most companies is right around the corner.

One of the first issues to be deal with no matter the timing of your fiscal year end is all those pesky payroll chores. W2's to be prepared, proved and mailed. And let's not forget our favorite year end chore - preparation of 1099's. If you have been keeping on top of things through out the year, then these processes should not be too onerous.

One thing you should know if you are not using a payroll service, but preparing your W2's in house is that on the W2 form Box 12 has new two codes this year. Code AA is for Roth Contributions to a 401k plan. And Code BB is to be used for Roth Contributions to a 403 (b) plan.

And don't forget to report fringe benefits such as cash which includes bonus, severance, vacation or sick pay, and non-cash gifts. These might include concert or sporting event tickets, meals, gift certificates or cards. Remember these benefits are subject to Income, FICA and FUTA taxes. Check with your accountant for the laws in your state as well. You do not need to report employee discounts, working condition fringes or use of employer owned or leased athletic facilities or what are termed as de minimus fringes (you know that free turkey the company gave to everyone). If you have any situation that might be unusual or that you don't know whether it should fall into the reportable fringe benefit category, then do check with your accountant.

This is also a good time to have your employees review their withholding requirements and to supply W4 forms to them should they need to make changes.

By now you should have reviewed your vendor list and made sure that all subcontractors are marked to receive 1099's. Your software program should be set to print a 1099 for each marked vendor that has earned $600 or more during the calendar year. You also should have already checked that you have entered the correct addresses and EIN's for each company/person receiving a 1099. Make sure you verify with the company that the name registered with the IRS for the EIN you have in your files is the same name you will be issuing the 1099 to. For example, if you have been making checks out to John Smith he might have an EIN in his dba (doing business as) name. Or maybe you have been issuing checks to the dba and he is using his personal social security number as his EIN in which case his 1099 must be issued in his name. It is very important to use the matching name and EIN number when issuing 1099's. Otherwise you will be receiving a letter from the IRS requesting you to verify the information and even perhaps asked to withhold backup taxes from your vendor to be submitted to the IRS. Having each vendor make out and sign a W9 form when they begin doing business with you and also at the beginning of each new year will help insure you have the right information. You can get these forms at any IRS office or online at http://www.IRS.gov. They do not have to be submitted to the IRS as they are for your records only.

The filing dates for W2's is February 28th however you are required to have mailed the forms to your employee no later than January 31, 2007. These dates are also in effect for filing of 1099's.

So enjoy your holidays while they are here, for come January 2nd you will be quite busy.

You will be quite busy.

Copyright all rights reserved D. L. MacMillan

Donna MacMillan, Advanced Certified QuickBooks consultant and president/founder of D. L. MacMillan & Associates offers a unique set of services covering all aspects of successful business growth and financial health for all business types and sizes. Offering comprehensive, confidential, and professional services, D. L. MacMillan & Associates can analyze, design or redesign your current systems to maximize productivity, cash flow and solidify your bottom line.

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How to Assure Quality Imports From China - Part One - Inspecting Subcontractor Factories

As you visit each of your factory's various departments, you may learn a portion of the production is subcontracted to other factories. Unless special circumstances apply, the subcontractors are usually near by.

The factories find this to be a sensitive issue and may be reluctant to disclose it.

They may try pretending the other factory belongs to them and is an extension of the production of the factory you are in. There is probably nothing further from the truth. Often, relatives of your factory's owner run the other factories and they doing each other favors. It is very common in China.

The problem you are looking to uncover is if the subcontractor has a totally different quality standard (if they have one at all). That means whatever quality assurance the factory has given to you may be contradicted or jeopardized through their cooperation with subcontractors.

The main reasons factories use subcontractors are:

To save money by squeezing the subcontractor to accept lower prices than they are capable of achieving themselves
To overcome a temporary production capacity shortage
To do a favor for a friend or relative that does not have enough orders to run their factory efficiently
Cover-up labor rights violations
Access to production equipment such as injection machines, spray-painting, and mold shops that they do not have

The problem is you have no idea how well or poorly the subcontractor's factory is managed without visiting. Your factory might not make this visit easy but you should insist.

Possibly your factory has several subcontractors. The more subcontractors, the more risk you will be taking that some of them have quality problems. This is a very good reason to insist on visiting them.

You cannot simply go wandering into the subcontractor's factory. You are going to need cooperation from your factory. Most likely one of the staff will accompany you and your visit will probably be limited to the area of the subcontractor's factory that is performing work for your factory.

Be sure to apply the same stringent quality and performance requirements as you did to your own factory. It is the only way you can protect your own business interests and to assure the quality of your imports from China.

Klaus-Dieter Hanke is a professional exporter/importer for more than 2 decades. He is the author of a successful eight ebook series "Importing from China".
His company WebMediaBiz provides consultancy services to worldwide importers.
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Home Building - What Every Smart Home Owner Builder Must Know About Subcontractors

When building or remodeling, you need professional help. Rarely does an Owner Builder go it alone. The subcontractor could be the single most indispensable building professional for the homeowner builder.

What is a Subcontractor?

Subcontractors are not builders. They are trades people. They specialize in their craft. They do not manage your entire project nor should they be counted upon to coordinate their efforts with other subcontractors. Whether a plumber, framer, electrician, excavator, roofer, carpenter or other trade, a subcontractor simply provides his unique service.

When you build or remodel, you use whichever tradespersons you need to complete the task at hand. These professionals must be evaluated, hired, and managed throughout the building or remodeling process.

When evaluating your potential hire, consider and determine the following:

They should be licensed and bonded/insured
Experienced in your market and knowledgeable about local codes
Have references that you can easily verify
You must get at least three competing bids for each trade
You should evaluate the quality of building materials they use
Inquire about their availability and time for your project

Homeowner builders can elect to provide some of their own labor to reduce the overall cost of labor or they can hire these subs for every aspect of the job. Either way, someone has to manage and coordinate their efforts.

Managing Your Subcontractors

In a traditional building environment, the General Contractor (GC) hires and supervises the work of the subcontractors. A GC can also be referred to as a builder. You, as an Owner Builder, may or may not be using a GC to help you. If you have not hired a GC for your project, you will be in charge. This can present a challenge to the average owner builder.

One of the bigger challenges you, as an owner builder may face, is the reluctance of a subcontractor to work directly for you. They worry about your ability to pay them, coordinate the efforts of all the trades, evaluate their work, and keep the project going.

These are legitimate concerns and you, as an owner builder should prepare properly to dispel these concerns. I typically advise you to utilize one of the following suggestions:

Hire a GC to be your Construction Manager
Implement a good building Process Management software program
Retain an experienced home building coach

Most of my clients have utilized the second and third suggestions combined. A good home building coach with a proven process management system provides an excellent and low cost solution.

Successful Home Owner Builders

A smart homeowner and home builder will always use talented professionals where it makes most sense. Regardless of the time and experience you may have, subcontractors will likely play a big role in your success.

Take the time to analyze them carefully and always get all agreements in writing.

You can learn so much more about home building and remodeling online. One great option is to take advantage of a very informative yet simple to follow *free* e-course that you can find by clicking here http://www.DreamHomeCreation.com You will also find other tips and tools, surveys, videos, and additional articles by Mel Inglima.

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A Database Driven Business Management System Is Right for All Businesses

A database driven business could be traditional or web-based. A lot of designers are focusing solely on web-based businesses in their advertising and marketing strategies. The message sent to traditional businesses might not be the right one. Here is the correct message.

Regardless of the type of company you own, you can implement the latest technological advancements to reduce costs, generate profits, do research, invent new products and develop new procedures.

You can use computer programs for creating marketing strategies, to find out where your customers are likely to be and how best to reach them. Your system can be used to evaluate the effectiveness of your advertising campaigns.

Designers working as contractors or subcontractors for your company can evaluate your needs, give advice and develop the programs. They can also help with implementation and train your employees if necessary.

You might need several databases to provide the necessary storage for files. You will definitely need a backup system to prevent loss of information, which is equivalent to lost money.

With all of the industrial espionage going on today, your computer files need to be secured. You need protection from worms and viruses. A good database driven business management system will provide all of those things.

Designers can use a number of different models and languages. XML is a popular model right now. If you are like some owners, you really do not care as long as the system works. But it is a question that your contractors or subcontractors might ask. Even some of your current employees could be interested.

If much of what your employees do every day is computer-related, they will almost certainly be concerned. It is a good idea to discuss the new system with them, as well as any contractors or subcontractors currently working with you. They may have ideas you never thought of.

The language used to create a database driven business management system matters more in terms of future problems than daily use. If you need help with your program in years to come, you may need to know what language was used when the program was developed. A designer that chooses a rarely used language could cause you problems, if he or she does not provide on-going support.

Since designers are contractors or subcontractors, they only work for you until the database driven business management system is installed or up and running. There's no long-term commitment unless you ask for it.

Tom Gruich promotes business interests. For more business opportunities in software and database design and for some of the better money-making affiliate markets, visit A Cornucopia of Articles and Videos or the Smart Database website at => http://www.adaptcode.com

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Subcontractors: Pros and Cons

I had lately some discussions about subcontracting with people featuring different points of view. I believe there’s no single universal answer to a question whether to use subcontractors. It all depends on a situation you’re in. When you’re a decision-maker you should always weigh both pros and cons of having a subcontractor in a project -- even in two similar situations, but happening in two different moments of time a result can differ.

Pros

1. Costs. When you have a task for fixed amount of time (no matter if it’s a week or a couple of months) it’s usually cheaper to find someone who’d do the work on contract basis. You don’t need to spend money on recruitment and sometimes it can be really expensive. The shorter or more shattered the work time is the bigger are your savings. When you need few hours of consulting every fortnight, it’s a perfect example. When you don’t know how often you’d need help, it’s probably good case to think about subcontracting.

2. Competence. You can’t specialize in everything. When you work on complex projects it’s likely you have some components to develop in areas where you have little knowledge. If you do it once and don’t plan to have them in your standard portfolio it’s good idea to find competent subcontractor who’d do it for you.

3. Flexibility. The bigger your organization is the less flexible you are. The more projects you do simultaneously the less flexible you are. The more serious commitments you’ve done the less flexible are. It’s because there’s a lot of actual work to do with the highest possible priority, where you can’t fail and it’s hard to find new hands to help. The answer is “subcontractor.” You can find one for whom new task will be the highest priority and he’ll do it be Monday overworking himself during whole weekend. Your team won’t do it. Maybe because during the weekend they struggle to finish another highest-possible-ever priority project. Or maybe because you just don’t want to have overworked the team. With the subcontractor you don’t really care if he’s overworked or not -- he isn’t your employee, so I guess he won’t quit.

4. Access time. It’s faster to subcontract another company than to recruit some new developers. You craft some standard agreement and start working. Recruitment takes more time and you have probably higher standards then for subcontractors. I’d think ten times before taking a primaballerina developer into my development team. I wouldn’t think more than a minute before taking a primaballerina developer as a subcontractor. It’s also tricky when you have a task for a dozen of people. While finding single, competent person in very short time is sometimes possible, I wouldn’t take the task to find a dozen of them unless I have “demigod” title on my card. On the other hand finding a subcontractor with a dozen of competent people in short amount of time isn’t extremely hard.

5. Equipment. You just don’t need it in the case of working with subcontractors. You don’t buy a computer, a desk, a chair; you don’t look for a room or something. You just don’t care about the equipment. Subcontractor cares.

Cons

1. Knowledge outsourced. When you outsourced a task you don’t learn anything about it. You won’t know what issues appear and how to deal with them. You won’t know all tricks and hooks implemented to make it working. You won’t go through documentations, RFCs, news groups’ posts and so on. You won’t learn the technology on the very low level, what gives you real understanding of what is actually done under the hood. It’s OK when you don’t plan doing anything in that specific area. However if you can think about another projects requiring the same knowledge I wouldn’t pay external company to learn something *you* need know.

2. Support level. That’s not true in every situation but is oh, so very common. You subcontracted something and cooperation was cool during design, development and implementation stages. But now it’s a maintenance time. Your subcontractor won’t earn a lot on support agreement, at least not as much to keep the level of financing he had earlier from you. Their motivation to cooperate with you, counted in bucks to earn, is much lower. So is the level of support. And that’s the case if you’re lucky. Sometimes ex-subcontractor doesn’t care any more if you have a problem -- their role ended with having an invoice paid. It’s your customer, not theirs. It’s you who care, not they. You pay forfeits for being late with bug-fixes? Ouch. It’s *you* who has a problem I guess.

3. Quality. There’re many extrinsic factors which improve a quality: tests on different levels, code reviews, statistics, etc. On the other hand I can think of only two important intrinsic factors to keep high quality: will to get things done well (which is a character feature so it’s rather not controllable) and perspective of maintaining the code in a long run. When working with subcontractors you can deliver some extrinsic quality-boosters, but they all vastly increases your own effort to have project completed. On the other hand it’s hard to deliver any intrinsic quality-booster, because you don’t manage subcontractors in a way you do it with your own developers. Unless you find reliable subcontractor I would be really afraid of poor quality of delivered code. Unfortunately, experience suggests that it’s really hard to find reliable subcontractor and vast majority of code produced that way is poor quality. Remember you’ll have to support it.

4. Other contracts. Does your contract with a subcontractor pay her rent? And is it true in the long run? In most cases the answer is negative. She’ll have almost for sure other projects to do. They’ll become more prior to yours. Don’t expect you’ll be treated in a way you treat your biggest customers than.

5. Lack of control and influence. Compare level of control and ability to influence work of your team and some external company which does something for you. You don’t control subcontractors well. You have to trust that anything they say is true. Sure, you can employ a complex system of controlling the work, but it won’t ever work superbly and you’ll spend a lot of time checking other’s work. Wouldn’t be wiser just to do the work?

6. Organizational effort. Preparing and signing an agreement. Double-checking specifications. Checking status on a regular basis. Registering all tasks, features and bugs submitted to do by the subcontractor. Managing formal communication. Losing time for pushing phones and e-mails from the customer to the subcontractor. You don’t need to do most of that when you don’t have the subcontractor. And it’s still easier to find a bunch of good developers than a good project manager, who has to deal with all those subcontracting things.

7. Costs. Yes, I know I mentioned costs on pros side. Subcontracting can be cheaper, but it can be more expensive too. Generally, an hour of work of subcontractor is more expensive than an hour of work of your colleague. You save the money during the time when the subcontractor doesn’t work for you. However, if the task is rather constant and long subcontracting will be probably more expensive. And one more thing -- usually official time and cost estimates are bigger than the reality. With subcontractors you pay for estimates now matter how easy (or how hard) the task was.

When you think about having a subcontractor in a project consider all those factors. Sometimes a single one of them can be a decision-maker -- e.g. when time is crucial and you don’t have enough your own developers it’s quite possible that nothing else matters. The thing, which is the most important here, is that there’s no universal answer. Subcontracting can’t be treated as a cure for all sicknesses, yet sometimes it works well.

Software Project Management is a blog where you can find observations, advices and thoughts about different IT projects - from micro-ISV's applications up to carrier grade solutions. Topics include but are not limited to software project management, software design, software development, team management and general ideas about software business.

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Home Improvement Contractors - How to Avoid a Love-Hate Relationship With Your General Contractor

It's no secret. Contractors don't always have the best reputations. Often, they are loved and hated at the same time. It's a bit like bitter-sweet candy that puckers your mouth when you eat it but you just gotta have some more. Should we simply accept that contractors are to be viewed as necessary evils? No, not at all. But, what do you do ensure a good experience?

 

What is a Building Contractor? 

First, I want to give some brief descriptions so we're on the same page. In basic terms, a contractor is a builder. These builders either provide specific and narrow services as "tradesmen" (or subcontractors) such as plumbers, framers, and electricians, or they can have broader duties and manage entire projects as a General Contractor. In most cases, contractors are licensed. There are different licenses for each. Some licenses provide for a broad range of duties and others are very specific.

 

In most home improvement projects, tradesmen/subcontractors are used to complete specific projects like framing an addition, adding plumbing, or installing more electrical wiring. A General Contractor can be used to hire and manage those subcontractors. If the project is small or simple, many homeowners will skip this step. Instead, they elect to find their own subs and manage the project themselves.

 

The Value of a Good Builder 

Let's refer to the General Contractor as your "Builder." A good builder brings a lot to the table. Hopefully there's a lot of knowledge and experience behind him/her. But, there's a lot more to it than just experience.

You hire a builder because you want someone to make sure that you get what you want. You want him (or her) to manage the process, hire the subcontractors, purchase the materials, get the proper permits, draw the plans, keep the job moving forward and keep you informed.

 

A good builder executes and communicates. Poor builders muddle through projects and hide from the homeowner. Good builders earn and maintain trust. Poor builders skirt the issue of trust from the beginning (often by making wild promises) and go downhill from there.

 

What Should You do as a Home Owner? 

Simply put, you want an excellent manager. One that executes and communicates. Every project has challenges and set backs. Do your research, check references, and find a builder that has these skills to go along with his knowledge and experience.

 

Your experience with the builder you choose is also up to you. Clearly state from the beginning just what you expect. Demand to be kept "in the loop" about what's going on ... especially when those challenges arise. Set communication schedules and keep them. Let the builder know that you want explanations for delays and plans on how they will be dealt with.

 

Remodeling Can Be a Great Adventure 

Love-hate is for the birds and it just doesn't have to be that way. You want a great result in your home improvement project but why go through hell getting there? I don't know about you, but I'd forget the bitter-sweets and start poppin' some chocolates.

You can learn so much more about home building and remodeling online. One great option is to take advantage of a very informative yet simple to follow *free* e-course that you can find by clicking here http://www.DreamHomeCreation.com You will also find other tips and tools, surveys, videos, and additional articles by Mel Inglima.

Building Your Dream Home - Part 2

Razing the Cottage

With new house plans and permits in hand, subcontractors hired and a Septic Design in process, it was now time to raze the existing cottage. I considered employing the local fire department to burn it down, however I chose the demolition route instead. Though I did not contact the Fire Department, I was convinced that this route would have led to multiple delays and pitfalls, as I would have been at the whim of several town employees and weather conditions. The demolition route required only the excavator subcontractor and had less weather related schedule risks. In addition, the demolition cost and effort was very reasonable. Within two days, it was as if the cottage never existed on the land. It is important to note, however, that the cottage was relatively small. It was 22' x 30'. If the cottage had been significantly larger, then the Fire Department route may have made more financial sense.

The demolition effort itself basically consisted of three parts. First, all of the furniture and appliances needed to be removed. Most of these items were old and musty and were not worth saving. Next, the excavator used a large backhoe and tore apart and crushed the building into small pieces. Finally, the excavator loaded the debris into several 20 cubic yard dumpsters, which were then hauled away by a dumpster company. Finding the appropriate dumpster company was a little bit of a challenge, as there are strict regulations on the disposing of certain home construction material. In addition, the dumpster costs can dramatically increase depending on how far away their facilities are from the construction/destruction site.

Breaking Ground

After the cottage was razed, and the stakes were placed outlining the boundary of the new home, it was time to break ground. This was a very exciting time as my dream was about to begin to take shape. I was building a large contemporary home with a wall of windows facing the lake front. Admittedly it was only a hole in the ground, but this hole represented the rough footprint of my future house. Seeing the hole, I could begin to more easily visualize my future home.

Digging out the hole and preparing the site for a foundation is one of the most critical aspects of building a new home. As a result, I spent several occasions with both the Excavator and Foundation subcontractors reviewing the house plans and the site prior to, and during the excavation. It was imperative that all of us were on the same page to ensure that the foundation walls, with all its jogs and step ups/downs would be located and installed per the plans. During these meetings a few adjustments were necessary to the foundation plans, however with all the team members involved the changes were minor and absolutely necessary. The changes helped prevent more serious problems later on and ensured that the outside aesthetics of the home were maintained.

As I already indicated, the foundation is extremely important to any quality home. If the foundation is not built upon a solid footing, nor constructed of the appropriate concrete strength, the foundation walls will crack in short order. These cracks can lead to water in the basement, settling in the framing, and eventually cracks in the finished walls and ceilings. Consequently, it is imperative that the excavation site not only be properly dug out, but also backfilled with crushed stone and sand to provide for a stable base and to enable proper drainage underneath and around the home. In my case I had the excavator dig out sufficiently to enable 18" of crushed stone to be backfilled into the hole and still meet my foundation plan requirements.

Once the site was prepared for concrete, the foundation crew installed concrete footings 18" wide and 12" deep. In addition they installed several cement footings in the middle of the house footprint for lally columns. The footings represent the base of the home and support the concrete foundation walls and the home itself. Due to the fact that it was winter, Calcium Chloride was used as an accelerator to speed the curing time of the concrete. In addition water had pooled in a portion of the hole, so constant pumping was necessary during the curing time.

After a couple of days, the foundation crew installed forms for the concrete walls. A day later the foundation walls were poured. Three days later the forms were removed and the foundation walls were in. I then had my excavator subcontractor return. After tarring the outer walls, just up to the level of where the finished grade would be, he installed a perimeter drain around the foundation and then backfilled the foundation with clean sand and fill. It is important that boulders and clay not be used as backfill material. Boulders can crack the foundation walls while being pushed into place, and clay can lead to improper drainage around the home.

With the foundation in and backfilled I was ready for framers.

The Framing Stage

The framing stage is probably the most exciting part of building a home. In a relatively short period of time, literally days, a house begins to take real form. Within less than a week knee walls were up, floor joists were installed and a plywood sub-floor was down. After a couple of weeks, the first floor walls were up and ceiling joists were being installed. I was so impressed I was convinced my new home was a month ahead of schedule. Boy was I wrong.

Before I elaborate on my misconception I should jump back for a minute. While the excavation work went on, I was also engaged with the Framing subcontractor. The Framing subcontractor needed to order framing material including lumber, doors and windows, shingles and siding. Inevitably there were issues with the availability of material and delivery dates, and as a result, we spent a fair amount of time resolving these issues. Fortunately, due to constant communication and quick problem solving we were able to have the initial delivery of lumber arrive on the site within a day after the backfilling of the foundation.

It is important to note, that it is at this time of the project that the large outlays of money begin to occur. Lumber costs for a home construction are quite large, and final payments are due to the Excavator and Foundation subcontractors. Excavation/Sitework and Foundation installations are a significant portion of the cost of building a home. In addition, the Framing subcontractor requires a portion of his labor to be paid in advance.

Also, it is very important that Homeowner Construction Insurance be obtained prior to the construction phase. This insurance protects the Homeowner/Builder against material theft and job injuries. All of your subcontractors and their employees should be insured but don't count on it. During any building project, subcontractors are bound to hire extra help for short stints and I would be surprised if these temporary employees were added to the subcontractor's insurance policy. The homeowner/builder insurance policy is small change compared to the risk of theft or the threat of injury lawsuits.

As I indicated earlier, I was in for a surprise with the framing phase of my home. As mentioned, the initial framing moved quickly. However it was still winter and frequent snow storms and extremely cold weather began to hit. This dramatically slowed progress. In addition, with the fresh supply of snow it quickly became apparent that my framing crew had an affinity to snowmobiling. So even on the sunny days my framing crew was frequently absent. No matter my level of complaining or prodding I was unable to control my framing subcontractor's work ethic.

Consequently, I had to contact my plumbing, electric, and fireplace subcontractors to inform them of the delay. This was extremely painful to have to do, as I had no definitive date on when I would actually need them and each of them had very full calendars. As a result, to be able to call them at the last minute and expect for them to drop what they were doing to come to work on my project was highly unlikely. Again, through regular communication with these other subcontractors I was able to mitigate some of this problem, however my project did experience significant schedule slips due to my framing crews shenanigans.

In retrospect, I am not sure what I could have done to have prevented this problem. Reference checks on the Framing subcontractor had been positive. I guess I should have asked what his hobbies were and made sure they did not correspond to the season I wanted the work done. It is also a fact that unexpected things do happen on any project and one should expect it and plan accordingly. For example, put some contingency dollars and schedule into your project for events such as mine. Also, I can not stress enough to establish a rapport and regular communication channel with all of your subcontractors. Do not assume anything during a project of this size.

To Be Continued ....

In Part 3 of "Building Your Dream House", the Framing continues and Rough Electric and Plumbing begin. Stay tuned...............

Over the past 20+ years Mr. Donovan has been involved with building homes and additions to homes. His projects have included: building a vacation home, building additions and garages on to existing homes, and finishing unfinished homes. Mr. Donovan's formal education and profession have been as an Electrical Engineer and Marketing Manager.

Me_Donovan@comcast.net
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http://www.homeaddition.blogspot.com

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Hiring a Sub-Contractor For Jobs

A Subcontractor is an individual or a company hired by a general or principal contractor to perform a specific task as part of a large-scale project.

A subcontractor can be a sole entity - eg an electrician undertaking work for a building contractor - or any national organization. A subcontractor works on a contract with the contractor for some provided services and generally the contractor doesn't employ the subcontractor as a regular employee. Subcontractors perform a part of the project for which the contractor is responsible. For instance, a contractor may hire an electrician to complete a part of the contractor's overall project. The contractor is liable to the customer for the total work including the part done by the subcontractor. Subcontractors work on contracts without any fixed termination date and the work can be stopped at any moment

Important points to remember Before Hiring a Sub-Contractor:

1. While hiring a sub-contractor be sure that he has the respective state's license for his said trade.

2. Know the background and work ethics of the sub-contractor it must be checked whether there are any complaints logged against the sub-contractor to prevent yourself from hiring someone who can cause problems.

3. In the written document, it should be specified that the subcontractors' aren't employees and that they are to pay their own taxes and benefits.

4. To protect both parties businesses, the working relationship must begin with a comprehensive written contract.

5. Have on paper a list of materials used so that if any changes are made, both parties including the homeowner signs off on the changes.

6. Don't let the clients deal with the sub-contractors on jobs.

7. Make sure to go through the sites and let the sub contractors know what is expected of them. A sub contractor is responsible for all works and needs to check and rectify the work performed by the sub contractor.

8. It is very important to review and inspect the work completed by the sub-contractor on each job.

9. While dealing with a sub contractor, it is very important to save the records of dealings with him which contain the contract papers, repairing list and cost incurred, up to date copies of certificates etc. Keeping records of all kind of conversations even after the project is completed is sometimes helpful.

10. Both the parties should have a good relationship with each other. For the general contractor, working with a dependable subcontractor implies completing jobs as per requirements. And for the subcontractor, a sound reputation gives better opportunities for his career and future jobs.

The written agreement is the base of a subcontractor agreement. It is the base document in the file of documentation which is needed when a sub contractor is hired. But there are basic points which should be checked before starting work:

? Certificates of insurance. There must be a condition in the agreement that makes it mandatory for subcontractors to carry workers' compensation insurance, general liability insurance etc. Make sure that certificate of insurance issued by the subcontractors' insurer shows that workers' compensation is currently in place and details the coverage's, expiry dates and limitation of the policy.

? Indemnification. Have a contract with a "hold-harmless" clause which is also called indemnity agreement.

Once you have the above guidelines in place you will notice that the sub contractor is more efficient on all jobs and deadlines will be more regularly adhered to.

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Hiring Home Builders - Your General Contractor is Not Your Plumber

You can't just get away with saying "Builder" any more. If you are building or remodeling your home, you're going to need building professionals at some point. Even as an "owner builder" you'll be working with industry contractors.

You need to know who these professionals are to plan and manage your project well.

Question: What's the difference between a General Contractor (GC) and a subcontractor?

Answer:

It's really a question of who manages the project. If you are managing the project as an Owner Builder, you are the General Contractor (or GC.) Tradesmen, like plumbers and electricians work for you.

Instead, you could elect to hire a GC and let him hire and manage these trades people (also called subcontractors/subs.) There is normally one GC and many subcontractors. This may seem obvious but the confusion comes in when so many people refer to both the GC and the subs as their "builders." Sure, they're all builders but they have very different responsibilities.

The Subcontractor Specializes

A plumber is a builder, an electrician is a builder, a roofer is a builder, an excavator is a builder, and so on. But, they all specialize in their specific expertise. They do not manage the entire home building project. They don't coordinate their efforts with other "builders." They simply perform their tasks.

These are known as subcontractors or tradesmen. They specialize. They do not generalize.

The General Contractor Generalizes

The General Contractor (GC) on the other hand, does generalize. The GC is more of a manager or supervisor and "Jack of all trades." He or she will take charge of the entire project, hire and fire subcontractors, manage their coming and going, inspect the quality of their work, keep the project moving forward, and ... hopefully ... report to you about what is going on.

Also, a GC may not do any labor and may have no employees. A tradesman will usually have a crew and manage his crew while being "managed" by the GC.

Keep this in mind if you plan to be your own GC. It's a big job and I recommend that you hire a Home Building Coach to assist you.

We'd like to give you a FREE email course called "Dream Home Creation" that you can find by clicking here http://DreamHomeCreation.com The order button is on the upper right corner of the page. Again, there is no charge or obligation. You will also find other tips and tools, surveys, and additional articles by Mel Inglima.

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