Question about subbing

I have a question about subing roofing jobs out. We are at the point where we have a good amount of roofs needing to be done before winter and i was wondering what a good rate to pay a sub would be. I was thinking something like 15 percent of each job. The current job I have going is 26 square, two layer tear off and put back on and i am getting 9800 for the job. That means the amount the sub crew would get paid would be around 1500. Is that a fair price or no? I would also have one of my long time employees go and do a complete inspection of the job after its complete.

I was just wondering what everyone says the going rate is. I have no idea about subbing because I have never really thought about it beforehand. Any information you guys give me about it will be greatly appreciated.

Take Care.

Hi,

With wages, insurance, trucks, tools, phone…it only cost you $1500 to do that roof?

No, 20% of the value of the job goes into paying labor. I was saying would an amount like 1500 be sufficient enough for a crew to want to do that sort of job. This one for example is only a 5 pitch. It should take two days. That was my question. I wish that was all it cost me.

I think you read it backwards lefty…

honestly not to offend but thats outrageously low. in pittsburgh nobody would touch it for less than say 150.00 per sq labor only

Hi,

I read just fine. The reason it is hard to find good subs is because the contractor thinks the sub is not really in business.

So you can not run a business for $1500. But you want to take that extra $500 and pocket it. Knowing that if you want to stay in busniess you need at least $2000.

Greed has you making your profit and overhead, plus you want part of the labor.

that is not even 60$ a square. No one would do it here except for the mexicans.

The going rate for a job like that in my area 65-75 Canadian.

Thats why I am trying to figure out what a good rate is. My guys do not make 150 a square or even 60 a square. That would be outrageous. Why would I pay someone else that much in order to roof the house? It is not like they have to pay for materials or anything else of that matter.

Or is it that I am not thinking business like and that they also have to make money and pay taxes and insurance.

I assume I should think like if someone asked my company to sub from them, I would need a certain amount a square to sustain profitability. Pay my employees, my taxes, my insurance.

Good point lefty.

would you do it for 1500 and except to make a profit,NOT,hell barley make any wage

1500? yes. minus 9.6 percent for their share of taxes.
And then you pay the matching taxes, workmanscomp and general liability.

This would be for a "crew"
Not a company.

You were not talking about paying 1500 and then he/she payed all the taxes, workmanscomp and general liability were you? that would be completely insane.

just considering the basics material say for example

  1. 30 yr oc duration approx 80 per sq after tax
  2. GAF shingle mate at 38 per 4sq roll
  3. fasteners and buttons 100.00
  4. sealants tar / black jack
  5. metal flashings drips pipeseals…
  6. dump debris

give or take a dollar your easily at 150 per sq here just for material and garbage, so i don’t know if your paying give or take 60 per sq for labor as you see it how are they gonna make any kinda money? but you wanna make like 200 just for closing the deal and the sub has all the liability

Seems a bit low.

Bambam says…

“Thats why I am trying to figure out what a good rate is. My guys do not make 150 a square or even 60 a square. That would be outrageous. Why would I pay someone else that much in order to roof the house? It is not like they have to pay for materials or anything else of that matter.”

You are the one that is stuck…Your guys are too busy and you have the weather climbing up your back…All things being equal…
As a qualified, fulIy licensed and insured roofing contractor, would want to make as much money as you when all is said and done. Your proposal…
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
your scenario
quoted price $9800.00 $9800.00

Material $26 sq @ 125…$3250.00
suggested labor $1500.00 <$4750.00>

your gross profit $5050.00
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
my scenario
quoted price $9800.00 $9800.00

Material $26 sq @ 125…$3250.00
suggested labor 26@150 $3900.00 $7150.00

your gross profit $2650.00
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

I sub for $50.00/ square off or on/ layer…into a dumpster provided by the contractor. I am cheap in my area…and if you were bidding labor only, at that price you would be cheap also. I expect 1 square per man/ hour on or off/ average.
so 2 layer strip + install= 78 sq/
78 man hours $25.00 $1950.00
workman’s comp 1950 x 37% 721.00
administrative overhead 15% 292.00
$2963.00

job cost $3900- 2963= $927.00

3 men for 3 days my gross $309/ day
would you work for that?
just saying…just answering

"Thats why I am trying to figure out what a good rate is. My guys do not make 150 a square or even 60 a square. That would be outrageous. Why would I pay "

Your crew has it’s insurance, taxes, comp, trucks, gas, tools, wear and tear, etc.and OH covered by you. That puts THEM making in excess of $200. per square.
So, yoy’re paying much more than you think to your crews. $300 a sq. for subs would be closer, minimum.

that price is ridiculous ! Maybee they can just bring back slavery and you can pay with some beans and rice or perhaps a bowl of soup per square. This is whats killing this industry gentlemen.

Would any of you guys be hiring? In my area 60.00 a square for a 2 layer walk on is good, some are doing then for 35.00 a square, but trust me, I wouldn’t let them roof my dog house. At these prices, I am happy with 300.00 per day, have made as much as 1400.00 in one day but I have also lost money on a couple so its a gamble. There’s nothing like roofing all week and not getting paid, but we have to take the bad with the good as they say.

Maybe I’m missing something here.Subs out here pay insurance,WCB,taxes,etc,etc.The contractor supplies everything except for tools and labor.I can make money on a walker for $65 a sq.How does the sub game work in your area?

Workers comp varies from state to state, in Alabama you can have up to 7 employees before it is mandatory, Georgia is 3. Most companies supply workers comp and deduct it from the subs pay , some require subs to carry their own, however you can’t get workers comp for yourself so its better if the company provides it. I have paid in 1000.00 a week on comp with a 7 man crew but was lucky to make 1000.00 a week, thats with me furnishing tools, labor, dump,trucks, gas . The company shouldn’t have to touch anything but the check.

[quote=“johnk”]I can make money on a walker for $65 a sq.quote]

Me too. But only if it is new construction.
And barely at that…[/quote]

I guess it all depends where your from.Subs don’t make much more than a wage where I’m from B.C Canada.Even after taxes,compo,insurance,gas,etc.I could still turn a profit.This is the going rate where I’m from $65 for 6/12’s and under,up to $110 for 12/12’s.$125 for cedar conversions 6/12 and under,up to $225 for 12/12’s.This is the going rates,some pay less.It is what it is