Received offer of sub-contracting

Hey fellow Inspectors!

I received a call today from a competitive inspection company asking if I would be open to a discussion of subcontracting to him to perform inspections on a 1099 basis. I have questions.

  1. What is y’alls opinion on this?
  2. What kind of compensation would be reasonable for me to ask for/require?
  3. Who’s liability/E&O would this fall under?
  4. If I up-sell the client on additional services, should I be able to retain 100% of the fees associated?
  5. If presented with a situation where I schedule one of these sub-contracted jobs, but then one of my own customers calls in with a full priced offer at the same time, how should this be handled?

Thanks for this and any other suggestions you might have for me. Looking forward to hearing back from you.

Thoughts in italic above.

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Well, having been on both sides, the lead firm (if they had a brain in their head) would be looking for something like 2:1 at the very least. If you were the sub, you’d need to provide them with a certificate of insurance with them listed as additionally insured. They would want to still mark up whatever else you do. As for your last question, you’d just have to very nimble with your calendar. Whoever books first, gets served first.

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I spent a considerable time doing sub contract inspections for a local franchise company. Each and every question you ask had to be addressed in the agreement between your company and the other company. Fees were split 60-40 to me. booking was done by them and I provided all my equipment and tools. Provisions should be made for termination of the agreement.
E&O was the franchise responsibility (I did contribute to the fee)

The arrangement, for me was a great ride. Keep an open mind and proceed with caution. You are in the driver’s seat cause they approached you. Same happened for me.

Cheers

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Agree with Doug… :smile:

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Awesome advice. Thanks so much, Emmanuel.

Thanks too all of you for responding so quickly. This helps prepare me for meeting with him.

So I have another question for you all about this before my meeting today. If I offer services which the inspector I would be subbing for does not, can I reasonably expect to retain 100% of those fees if I up-sell the client? For instance, sewer scopes. Thanks in advance!

If you were subbing work, would you want your sub to upsell the client on the side, behind your back, and charge 100% for it? It’s not your client, it is your employers client unless you are partners and such details are worked out in advance… See where I’m going with this? bottom line, it’s something you should definitely discuss with your employer so there are no surprises and then battles. Be upfront and honest about what you want to do and work out details that work best for you.

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I totally understand what you are advising and you’re right. I need to be upfront about my concerns and ideas ahead of time (which I do pride myself on). Thanks so much!