Subcontractor?

[Doward]

I'm wondering if anyone here has ever done any kind of subcontracting work? I've not, but I may have the opportunity to do subcontracted service tech work, in the computer industry.

Little background:
22 years old, going to college in Gainesville, FL for ECE/CIS (yeah, dual majoring, woo) and I've been working on computers since I was 7. Wildwood High actually gave me my own class (of just me, lol) that was nothing but doing the computer work around campus, and networking both the Primary and Backup Domain Controllers on NT 4.0 Server/Workstation (omfg... P166 + 32Mb ram + NT 4.0 = NO - but we did what would could, with what we had )

I'm looking for work that I can work around my schedule. From what the owner of the business has told me (I've got to call him back tomorrow @ 1:30p to see about meeting up and discussing it more in depth), is that he'd call and say 'I need such and such done at *location* and I go do it. He's telling me about a job coming up next week that he'd need help with, that would be networking 3 offices in 3 locations (Gainesville, Ocala, and Chiefland) and doing support for them. Pay varies based on what the bid is, but he's telling me that this one would be $50/hr per contractor.

Anyone with any experience as a subcontractor, that can give me a quick rundown on what it's like?

If the pay is good (and from what I understand, as a subcontractor, I can pick and choose which jobs I want, that are available) then this would really allow me to have fun with teh V6. A new welder would be in order, some forged pistons, maybe a different turbo... mmmm... the possibilities.

But I want to be sure I'm not blinded by the $50/hr figure

Btw, I currently make $7.10/hr @ Autozone, rofl.

[bszopi]

RE: Subcontractor?

Depends on how he does it... I've done subcontracting before with construction work, but almost all of it was under the table stuff. And I was basically charging what I felt I was worth for the job at hand. I would be asking about how much liability will be on you as the tech. If something screws up, is it going to come back on you? There are other things to consider as well, but I'm drawing a blank right now...

[dohcfiend]

RE: Subcontractor?

subcontracting is shifty work. mostly, it depends on who you are working for. i have subcontracted for direct tv be4 installing systems. it sucked, got ripped off around every corner and paid out the ass for taxes. but after a while, you learn the game, get the calls in the good neighborhoods, and just screw the customers as much as you can get away with.

when i started i was making $500 a week after 1 month i was getting about $700 a week plus 2-300 a day screwing the customers. but it was hard work. usually 60-70 hour weeks.

another one i had closer to what you were looking at was i subcontracted for xerox be4 as a technician. that was totally different, worked for a good group of people but no $$$ exchanged hands with the customers. hours were good, benefits were ok. got an expense report with gas re-imbursement.

[firechiken]

RE: Subcontractor?

$50.00 an hour is really not that much. I know your young and don't think you need it, but you won't be getting health insurance. Get hurt some how on the job, no workman's comp. Your not adding anything to social security, so your not getting any credit, so forget about that if you somehow become disabled. He's paying you $50 an hour. How much do you think he's getting paid? If this is what you want to do, do a little research and start your own little business up and find these jobs yourself, and save yourself a lot of headaches. This guy is trying to take advantage of you, and don't let anybody convince you otherwise.

[butchville]

RE: Subcontractor?

50 a hour + mileage= 15 taxes+10 insurance= 25 a hour being your own boss with enought work to not have to look for work to not have to bid work an spend time talking to custermers=

[Doward]

RE: Subcontractor?

Still - Even $25/hr vs $7.10/hr tho... LOL

[CNCguy]

Doward
You can look at this several different ways.

1) You are a sub-contract employee.... not alot of real future.

2) You start your own company, take the sub-contract work and persue more customers (both first and second tier). From there you start to add your own employees or sub-contractors.

Option #2 is the best way to go if you have plans to own your own business. I have a small machine shop and am a sub-contractor. In the beginning I took alot of second and third tier work but have slowly been working towards having only first tier customers.

You must have self-disipline to set aside funds to pay your taxes, insurance and slow times. You will be paying into and eligable for Social Security and Medicare (called Self Employment tax - 15% of your gross income) as well as Federal, State and Local income taxes.

Setting up your own company allows you to deduct all business related expenses including home office, vehicle expenses, tools and equipment. Just be sure to keep accurate records for everything and find an accountant to give you some advice.

Another consideration would be to set up a corporation or LLC to protect yourself from lawsuits. It is not an extremely expensive thing to do but could be very important for your future.

Business insurance is another thing to consider. I do not know what your liabilities would be in the event of something bad happening like losing all of a customers data. I pay around $900 a year for $1,000,000 in liability and $300,000 for equipment coverage. I would think that business insurance for your situation would be considerably less since you are not manufacturing anything that could cause physical damage.

It may seem like alot of things to cover but in the end it is well worth it. I have been self-employed for almost 8 years and there are many ups/downs but I could not imagine going back to work for someone else. There is alot to be said about being your own boss.

Never forget that your customers will need your services in the future and will remember how you treat them. Reputation is critical since lots of work will come from referals.

Perhaps a triple major would be appropriate... Business administration.

Marc

[Juglenaut]

subcontracted service tech work

I am now in a related field, but as a field tech. I have played with comps since the Intel 186 chip. I also been in RadioControl since 1992. Atari Generation, had a Nintendo on introduction in 1987.

The company I work for now subcontracts us out. We have some choice on the jobs but if nothing comes up at home or personally then the owner picks our jobs.

Oh yeah, pay is much better than I got at my last job, but still not the best for SD in the way is field tech, but got to start somewhere. Pay per diem for overnight stays that vary by county, which include meals. Gas paid expense.

If you are subcontracted you will not get 50 bucks an hour only the contractor gets that, you will get whatever the contractor gives you hourly.

Well if you are new to the game, then it always good to learn the ropes, never put off experience, then if you got more experience and knowledge then decide what to do.