How does sub contracting work? I hired a roofing company to put a roof on my house,...
I hired a roofing company to put a roof on my house, and they sub contracted the job out to someone else.
These guys are doing a fantastic job of roofing. It looks wonderful and I am so impressed.
How do they draw from paid? I paid 1/2 the charge to another contractor.
Does he get the other half and split it beside them? I dont get how this all works.
Answers: Lots of times a company will hire a different company to do the work for them when they are so busy that they cannot do it themselves. They will wage the other company out of the money that you paid them. They can pay the other company alike amount that you paid them or some other negotiated amount.
This is alike as hiring Home Depot or Lowes to do work in your home. They take a factor of the money as "middlemen". The only problem with this is making sure your contract have guarantees that the sub contractor will be paid in full and also carry insurance and bonding in case something happen. if you paid $100, your contractor would pay the other citizens $80 and keep a profit for himself...
(I know the numbers arent realistic but freshly for sake of arguement.)
But the contractors usually have an agreement with respectively other and will scratch each other's back...