KEN KIRSCHENBAUM, ESQ ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE You can read all of our articles on our website. Having trouble getting our emails? Change your spam controls and white list ken@kirschenbaumesq.com ******************************* Subcontracting and subcontractors December 10, 2019 **************************** Subcontracting and subcontractors **************************** Ken It just occurred to me that there is often the mention of subcontracting here. Rather than having to search piece meal though all your posts, I was wondering if you could give us a list of the following from your perspective and any other thoughts you might have on the subject. * Subcontracting advantages (if any ) * Subcontracting disadvantages * Subcontracting precautions Thanks Gene Reliable Alarm *************************** Response **************************** Thanks for the question; great topic. There’s 3 ways to get things done: 1) do it yourself; 2) hire an employee to work for you and do it; and 3) engage someone else to do it. The “someone else” is a subcontractor. What’s the advantages of subcontracting? · You don’t have to have an employee who you have to pay full or part time and provide benefits · You don’t have to carry insurance that is required for employees, like workers comp, auto insurance, and disability insurance or make employer contributions on top of wages or withhold taxes. · You don’t have to provide tools needed to perform the work · You don’t need to transport the subcontractor to the job site · You don’t have to supervise the work · You can engage the subcontractor only when you need them and not have wasted cost for unproductive employees or slow periods with no work. What’s the disadvantages of subcontracting? · You may be unfamiliar with the skill set of your subcontractor or its employees, including license compliance · You may not know if the subcontractor maintains the appropriate insurance · Subcontractors may not be available when you want them · Subcontractors may not perform the work in the manner you prefer · Subcontractors may not be engrained with your business culture and practices and may reflect on you poorly when dealing with your customer · Work may be unreliable in both performance and outcome Subcontracting precautions · Check for licensing of the subcontractor and all employees who will be on your customer’s job · Check for proper insurance. Subcontractor should maintain workers comp and should maintain all insurance that you as an employer should maintain · Make sure subcontractor maintains general liability insurance with E&O coverage and names you as an additional insured, primary and non-contributory. · If you engage a single – one person – subcontractor you have to be extremely careful to ensure that the subcontractor is properly classified as a subcontractor and not as your employee. Calling a subcontractor one and issuing a 1099 rather than a W2 does not make the subcontractor a subcontractor. In fact it’s more likely that this subcontractor is really your employee and you will be liable for all kinds of issues. · Be sure your subcontractor is party to a Subcontract which has appropriate provisions for confidentiality and non-compete. After all, you are sending the subcontractor out to meet your customer and it won’t take much for the subcontractor to develop a closer relationship with the customer than you have. · Be sure to use the Standard Subcontracting Agreement.
There is a comprehensive list of subcontractors and those looking for subcontractors on The Alarm Exchange. None vetted, so do your own due diligence and report any problems to me. ***************************** To order up to date Standard Form Alarm / Security / Fire and related forms, click here:www.alarmcontracts.com ************************* CONCIERGE LAWYER SERVICE FOR THE ALARM INDUSTRY PROGRAM You can check out the program and sign up here: https://www.kirschenbaumesq.com/page/concierge or contact our Program Coordinator Stacy Spector, Esq at 516 747 6700 x 304. *********************** NOTICE: You can always read our Articles on our website at ww.kirschenbaumesq.com/page/alarm-articles *********************** THE ALARM EXCHANGE
This area is reserved for alarm classifieds, alarm company announcements, solicitations, offers, etc. There is no charge to post a listing here.Include your contact information, phone, email and web site. If you would like to submit a post, please send an email to ken@kirschenbaumesq.com. To create a reciprocal link to our website, click here. ************************************************ Getting on our Email List / Email Articles archived: Many of you are forwarding these emails to friends or asking that others be added to the list. Sign up for our daily newsletter here: Sign Up. You can read articles and order alarm contracts on our web site www.alarmcontracts.com ************************** Ken Kirschenbaum,Esq Kirschenbaum & Kirschenbaum PC Attorneys at Law 200 Garden City Plaza Garden City, NY 11530 516 747 6700 x 301 ken@kirschenbaumesq.com www.KirschenbaumEsq.com