Businesses often require subcontractors for assistance on large, specialized or diversified projects when they do not have the resources on hand or need additional expertise. In these instances, hiring an expert to work on one or more short-term projects can be beneficial in terms of cost, quality and efficiency.
Here are 7 ways that hiring a subcontractor can solve an immediate problem for your company:. There will probably come a time when your business needs to take on bigger projects in order to grow. Subcontractors or team partners can be a valuable resource in these scenarios and allow you to take on new, larger clientele.
When your business needs some extra hands on a large project, hiring subcontractors is often much more cost effective than bringing on new, full-time employees. It also helps avoid risk by hiring a reliable and safe firm with substantial niche experience. Even though subcontractors are typically cost more than self-performing in-house, it is still more cost-effective in most cases.
Subcontractors do not get benefits, office space or equipment. Hiring contractors also relieves you of having to pay employee taxes and a full-time salary.
When all is said and done, hiring a subcontractor is about 20 to 30 percent more cost effective than hiring full-time additional staff. Subcontractors will often offer a superior service and provide expertise that you cannot get from your staff. In most cases, they have been working in a specific field for a number of years and have had ample opportunity to hone their skills.
Furthermore, a subcontractor is likely to have done similar work before and will be able to get the job done quickly and efficiently. Increasing productivity is probably the biggest benefit of working with a subcontractor.
Rather than bogging your employees down with simple but mundane tasks, you can outsource these projects to a third party. Doing so will allow your staff to focus on core business needs and may actually get the job done faster if your subcontractor has expertise in this area. Hiring subcontractors allows your business more flexibility than if you were to hire new, permanent employees. When you check his work, you find that he has done a poor job and that the client will never accept it.
Firing a subcontractor could be seen as a break of contract, and in any case, would leave you needing to hire someone else to complete the work. Subcontractors also are not responsible for the terms of the original work agreement between the contractor and client. It is very important to hire subcontractors that you trust, and that have a reputation for both doing quality work and acting in good faith when it comes to their business.
Subcontractors should be professional in both their business dealings with contractors and in their behavior in the work environment. As a contractor, the scope of projects you can take on grows with the number of quality, professional subcontractors you have access to. Therefore, it makes sense to build your network of professional contacts as much as possible. Working with subcontractors presents a unique set of challenges but is a great way to increase your profits and create customer satisfaction as a contractor.
Subcontractor vs Contractor: Understanding the Difference This resource article talks about some of the differences between contractors and subcontractors who work in the field of construction. What is a Contractor? What is a Subcontractor? Dangers and Pitfalls of Subcontracting As a contractor, it is important to make careful decisions when hiring a subcontractor. Key Takeaways It is very important to hire subcontractors that you trust, and that have a reputation for both doing quality work and acting in good faith when it comes to their business.
Using contractors and subcontractors Advantages and disadvantages of using a contractor or subcontractor. You can often specify the type and duration of contract you need for the contracted job.
Contracting and subcontracting allows you to obtain temporary cover for a permanent post or a work project. Your own staff may resent contractors being paid more money for doing similar work to them. If you use a contractor that then uses a subcontractor, you have no direct control over the quality of subcontractors' work. Workers can be employees or subcontractors of the contractor - you need to understand relevant tax implications and other rights.
See employment status - implications for tax and workplace rights.
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