What is the downside to subcontracting?

The disadvantages contractors doing this work lie in costs: The hourly expenses are high, and the professionals are independent in that they don't report to supervisors inside the company. These factors make it challenging to control the costs of these subcontracts.

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South Dakota Subcontractors Package

South Dakota Subcontractors Package

Name: South Dakota Subcontractors Package
Brand: US Legal Forms
Price: 59.00 USD
Rating: 4.71 (321 reviews)

Category:

South Dakota Construction - Contractors - Subcontractors

State:

South Dakota

Control #:

SD-P081-PKG

Format:

Instant download

Description

This package contains essential documents for Subcontractors to use to manage their construction project and protect their legal rights. The heart of this package is the subcontractor's agreement that complies with state law.

This package contains the following forms:

1. South Dakota Construction Contract - Cost Plus or Fixed Fee
2. A Construction Project Information Sheet
3. A Change Order Sheet
4. A Certificate of Completion
5. A Weekly Equipment Summary
6. A Time and Material Log
7. A Bid Log
8. A Bid Follow Up Letter
9. A Summary of Estimate
10. A Final Project Punch List
11. A Worker Safety and Health Plan
12. An Accident Report Form

Purchase this package and more than 50% over purchasing the forms separately!

South Dakota Contractors Forms Package

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Owner's and Contractor Affidavit of Completion and Payment to Subcontractors

View this form

Sample Complaint by Contractor for Amount Due

View this form

Contractor Indemnification

View this form

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FAQ

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.

Lack of staff development. Contractors will use more time researching potential subcontractors. Contractors will lose their control over the timeliness and quality of work. Poor performance quality.

The biggest drawback for workers is the lack of benefits provided. Most, if not all, companies that hire temporary workers do not offer health insurance, retirement plans, or vacation and sick days to them. Workers are responsible for funding these benefits, and they're expensive.

Some subcontractors are paid with a lump sum of money by their employers. For example, a technical writer contracts with a company to write a manual. The company agrees to pay that writer a certain amount of money to write the manual. The writer then writes the manual for the company and submits it.

Licensing. Scope of Work and Payment. Timing. Defense and Indemnification.

The disadvantages contractors doing this work lie in costs: The hourly expenses are high, and the professionals are independent in that they don't report to supervisors inside the company. These factors make it challenging to control the costs of these subcontracts.

Subcontracting in general is where one company will take a piece of work and give it to some other business organization to carry out that work.The more subcontracting, the more fissuring of the work, the greater the risk for health and safety at the bottom of those chains.

Start with procurement standards. Execute all subcontracts prior to starting your projects. Help those who help you. Award the job to the lowest fully qualified bidder. Use contract scope checklists. Make sure you have tight clauses. Meet to review the proposed subcontract.

A rule of thumb for independent contractors is that the vendor should be allowed to mark up your pay rate by about 15 percent when billing the client. This allows the vendor a respectable profit without making the bill rate outrageous.

South Dakota Subcontractors Package

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FAQ

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South Dakota Subcontractors Package

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