Types of Subcontractors and How They Are Paid
Footings
Price is based on a per linear foot basis to layout, dig, and pour concrete. You should have a specified, firm dollar amount for the complete job.
Provide your own concrete. Having the subcontractor provide the concrete will likely cost more.
To order concrete, all the sub would do is make a phone call ─ the same call you could make yourself ─ and he’ll mark up the price.
Make a one-time payment after the concrete is poured and the job complete.
Foundation
Labor cost for slab foundations are figured at a specific price per square foot of floor space.
You and the sub should meet and agree in advance what that footage is, thus determining what the final cost will be.
Masonry labor cost in foundation work is based on a price per block laid. The only material the sub will provide are the forming boards. You’ll supply everything else.
Make a one-time payment upon completion of job.
Plumbing
Your agreement should have a total dollar figure for a complete job. You provide appliances and possibly plumbing fixtures, though I recommend having the plumber provide the fixtures, including them in the contract price.
The plumber provides all other materials and labor.
I pay my plumber in three phases: approximately 10% of total for work at foundation phase, approximately 50% for rough-in after framing, and the balance for the final.
In each case, you have the right to withhold payment until inspections pass.
Read more about Paying Subcontractors
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