Originally Posted By: bnelson This post was automatically imported from our archived forum.
Has anyone brought a 2nd inspector on board as an indenpendant contractor, NOT an employee? What I would like to do is very much like a franchise, I suppose, but wonder if I could legally have ONE sub-contracting inspector perorm inspections with my reporting system, my business name, etc., but with his own E and O and other overhead. I would essentially be an administrator, checks would come to me, and I’d take my cut and send him a check at the end of each week.
My lawyer says "No problem" and will begin drafting a contract for the relationship, but I'm sure this sort of thing is being done elsewhere and wonder if any industry standards have been created at this point? My problem with an employee-type arrangement is not my own costs of labor burden so much as I want this guy to maximize his takehome so he's motivated to do top notch work. One local multi-inspector firm in my area starts their inspectors at 20% of the inspection fee, and they can work their way up to a whopping 28%!!! Enough said?
The stipend I would pull off the top beats sending away (for free) up to 25 inspections a week now because I get booked out.
Originally Posted By: jkormos This post was automatically imported from our archived forum.
Brandon, congratulations first you need to calculate your business expenses, a little something for the company, and then your inspectors cut. I would give the inspector a higher fee for leads that they generate on their own less your business expenses.
Originally Posted By: ccoombs This post was automatically imported from our archived forum.
Brandon
Sounds like a great idea! I put together a business plan for a multi-inspector firm, but they would all be employees. My concern was liability for the company and control over the employee. As a contractor I would think s/he would provide all his own equipment and vehicle. If I provide all the equipment, then it would be more difficult for them to leave the company and start their own company. With the E&O insurance paid by the company, I would know it was paid in full.
On the contractor/employee side of things, there might be more benefits to being an employee. As a contractor he has to pay his own taxes. He will pay more in taxes this way. He may have issues with qualifying for loans because he is considered self-employed. Although there are some tax advantages being a contractor, s/he may not be able to take full advantage?or even enough to justify the higher taxes.
With a contactor or employee situation, I have some suggestions. If they will be doing any driving related to work, get a copy of their driving record every 6 months. Make it a requirement that they inform you of any tickets or accidents (even if not on company time). Outline the requirements for car insurance as well as E&O insurance. Your company and you should be listed as additionally insured. I would also require that they not moonlight. All inspections, even if for their family members, should be done by the company?.even if only for a very minimal fee. My state has limitations on enforcing a non-compete agreement, but you should put one in the contract because it will be a deterrent?even if not enforceable. A non-solicitation and confidentially clause will help limit their ability to solicit work from company contacts as well as taking information if they do leave. I would look into adding some type of umbrella insurance policy to protect you and the company.
There is a very large company in my area that starts their inspectors out at about 20% and will increase them to as high as 45%.
Originally Posted By: rparker This post was automatically imported from our archived forum.
Brandon I work as a contractor for a large firm in my area.I do like the set up I have .I have done more inspection in one year than I did on my own.I recieve almost 1/2 the fee for the inspection and pay my share of the e&o .I do supply my own wheels and tools .But all the office expenses and marketing are handled by the firm.I also recieve bonuses for working weekends,after 430pm and for my own referalls.Like i said its the best thing thats happen for me
Originally Posted By: bnelson This post was automatically imported from our archived forum.
Rob,
Glad to hear your situation is working out for you. Can I ask what kind of terms you agreed to in your contract? Non-compete, hold harmless, etc.? Continued success to you, and thanks for your post.
congratulations