Subcontracting: when it makes you money, when it costs you

Why subcontracting is the underrated growth lever

It is the only way to increase capacity with variable cost and no commitment. No payroll, no idle weeks, no notice period. If demand drops, you simply stop calling. For most tradespeople it's the right step long before a first hire.

It works best in three situations: overflow in your peak season, a trade adjacent to yours (the electrical part of a bathroom), and one-off specialist work you'd otherwise refuse.

How to price it — the margin is not optional

Never pass a subcontractor's price through at cost. You carry the responsibility, the client relationship, the coordination and the guarantee:

Subcontractor's price × 1.15 to 1.30 = the line on your estimate

Below 15 % you're working for free and absorbing risk. Above 30 % you're usually uncompetitive. Note this is a margin on their price, not a markup you hide — your client is buying one complete job from one responsible party.

The paperwork that protects you

• Get their quote in writing before you quote the client. Never estimate their part from memory.
• Verify their insurance and registration — and keep a copy. If they cause damage, your client will come to you first.
• A written scope for them too, with dates. "Wire the bathroom" is not a scope.
• Match your payment terms. Never agree to pay them at 15 days when your client pays you at 45 — that gap is your cash flow.

The client-facing rules

• Say it up front. "The electrical part is done by an electrician I work with regularly." Discovering an unexpected stranger on site destroys trust; announcing it reads as professional.
• You remain the single point of contact. Never make the client chase your subcontractor. The moment they deal directly, you're no longer the business — you're an introduction.
• You guarantee the whole job. Your name is on the invoice, so your warranty covers it. Sort out any problem with your sub afterwards, out of the client's sight.

The failure mode to avoid

Subcontracting a trade you cannot assess. If you can't tell good work from bad in that specialty, you can't check it before your client does — and you'll be the one paying to redo it under your own guarantee.

Keep one clean document for the client

The client should see one estimate, one invoice, one responsible party. With Pro Speak Artisan the subcontracted portion is simply a priced line on your own estimate, with your branding and your terms.