TCF481: Contractor Q&A: What is a Good Warranty Timeline?

Listen in as Tom and Dan answer your questions about who should handle materials and quotes when you hire a sub, a reasonable warranty timeline, explaining profit margins to customers when you hire a sub and determining what rate to charge.

 

In this episode, we answer the questions…  

Question1: I hire subs, and take care of the quotes, materials, orders, designs, etc. Is that your responsibility for hiring them? And what is the general contractor and subcontractor offering on each project?

• If you're subbing out to a framer, expect the framer to buy the materials.
• You can negotiate when the work is done.
• Take responsibility for the material to ensure top-quality finishes are used. 

 

Question2: What is a good warranty timeline? I'm a deck builder.

• If you're building something structural, it would be several years
• Warranty is not a problem. It becomes a customer service opportunity to get in front of people and get the deal done.

 

Question 3: If you took 25% on a project after subcontracting, and the customer asked for a breakdown, how would you explain it to them?

• You are the one they hired, so if your sub goes out of business, you are responsible for paying for repairs, you are warranting the job, and they are coming after you, not your sub.
• 25 percent is too little—it should be double what your subs charge you
• Your customer should never know your targets.

 

Question 4: We offer a wide variety of services. Would you recommend charging different rates for different projects as long as I hit my target of $80 an hour per man-hour? 

• Provide services that are easy to find for the customer, and the labor is easy to locate with a hassle-free experience
• Offering so many services would be difficult to justify

Resources: 

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