Re: Piece work ?????
Originally posted by patc:
I need some advice/info if possible. I have been asked to consider doing "piece work", sort of. The deal is that the Licensed contractor would take a percentage off the top of the job, after he bids it, and then it would be up to me to complete the job in the time that I need to and the balance of the money, less material and what ever help that I would need, would be mine. Basically he says that I would be able to increase my present income by taking on more responsibility. I'm not sure what questions to ask in order to protect myself. I'm presently making $20.00/hr. and have medical coverage too. This is 95% residential work and I'm not sure how much more that I can really make. There has been only one conversation about this and he hasn't given me much info about how much he will be taking off the top. Any feedback?
First off I will tell you I am not an electrician and I have no personal experience at what you are suggesting. I do however know at least one guy who did something similar to what is being proposed for you. He worked out a deal with a general contractor where he got paid X amount of dollars for installing whatever electrical hardware the GC purchased for a project.
he did very well at it because he was doing homes that were very similar and he got very good at it.
later he quit doing it and took a job at a hospital as a maint electrician. I think he just decided having to hustle so much was not worth the added effort.
I think you will find that medical coverage can be either a major issue for the self employed or not as big a deal as you might think. If you or your family has pre-existing conditions health insurance can be very expensive. OTOH, I know a 50+ year old women who pays only $160 a month for a pretty decent policy with a $1500 deductible (no drug, dental, or eyecare coverage though).
I would urge you to very carefully consider who you buy your health care coverage from. Do some research on the internet about the company before you buy. There is a company that heavily advertises itself as some kind of a benefits association for the self employed that you may wish to avoid after you look into it closely.
You also want to make sure you have adequate liability insurance regardless of whether the GC requires it. remember that liability insurance is not about paying off claims but about having someone else foot the legal bills.
Talk to your lawyer and accountant about setting up your business so you have minimal personal liability. This is not trivial to do and you cannot shield yourself completely