Keywords: subs, subcontractors,
We all make assumptions about things in our day-to-day lives. In the painting world people assume that the painters coming out to do their work are employees and not subcontractors. The person doing the estimating commonly refers to the painters as “our guys”, but that doesn’t necessarily mean they are actual employees. It is critical that you talk about this with the Estimator, Salesperson, and the Project Manager. Many people even ask us when they make the initial call and estimate appointment. At MTS Painting we put it in writing that all painters are employees of the company. So why does it really matter?
SUBCONTRACTORS
“Subs” can keep the expenses lower for the contractor and sometimes the savings are passed on to the homeowner. The painting company doesn’t have to pay the subcontractors worker’s compensation insurance, unemployment taxes, payroll taxes, vacation & holiday pay, or sick days. The company likely doesn’t supply tools or provide transportation to and from the jobsite. Saving money seems like a benefit – but at what cost?
The cost of using subcontractors to the painting company is a loss of control over the jobsite and the project. The company cannot legally enforce a work schedule on the subs. Have you ever had an appointment broken because the tradesman had double booked? Subs cannot be told how to do the job, or what tools to use. There is less consistency in the work as they are not being trained on company systems and methods like an employee would be. While the company has insurance, the subs may not, leaving you, the owner of the property, unprotected.
We have heard many horror stories about painting companies that use subcontractors. A less than five-star paint-job outcome isn’t always the fault of the sub. Sometimes it is the situation where the contractor incorrectly estimated the time and materials of the project and once the subcontractor accepts the job, but upon starting the job he or she figures out that the job will take substantially more than was originally estimated and contracted for, then the sub is in a pinch. If one of the contracting entity’s doesn’t find a way to cut corners or eat the mistake, someone will lose money. Whenever the contractor and subcontractor are at odds with each other, the homeowner is caught in the middle. In the end, the homeowners may save a little money if the project goes well. But if it doesn’t . . . they are taking significant risks of money and end workmanship.
There is a possibility the subcontractor will have their own Contractor’s License and be fully insured legal entity, and therefore the customer will be protected. But why would the sub do work under the other contractor for a lower price? Will someone be making money just because they found the client somehow, and that could be an added cost to the customer. A legal contractor will cut out that middleman and have a better price, or provide better quality for the same price.
EMPLOYEES
In our opinion employees on the payroll is the only way to go. The company maintains ultimate control over quality, safety, scheduling and especially culture. Payrolled employees are all covered by workers’ compensation, liability insurance and an umbrella policy that protects the homeowner from accidental injury or damage to the property. We set the schedule and show up when we say we will. We supply the proper tools and equipment and ensure they are properly maintained and in safe working order. We provide a consistent and predictable product because of the systems, training, and processes we have implemented at MTS Painting.
MTS Painting honors our contract, even on the rare occasion that we make a mistake on the estimate. We stand by our crew and our workmanship. We make sure they have enough paint and enough time to ethically complete the project to Industry Standards without shortcutting to save the profit margin. We build and maintain a company culture of trust and loyalty between office staff and field employees because we are all on the same team.
Next time you are looking to hire a painting contractor or any trade contractor, make sure to ask if they have employees or if they use subcontractors. Please consider the risk you gamble with in most cases. Call us to schedule a free estimate or to learn more about what MTS can do for you, including getting it done right the first time and on-time.