Why We Stopped Using Long Subcontractor Chains

I want to tell you about a project in 2019 that changed how we run our company. A full home remodel in Colton. Big scope, three months, ten separate subcontractors managed by a general who managed another layer of leads under them.

What went wrong

The tile sub subbed to his cousin, who subbed to a crew we never approved. The waterproofing was done in a rush and failed inspection. We caught it. We ate the cost to redo it. The owner never knew, but we knew, and it stuck with me.

What we changed

Carpentry, framing, tile, and finish are now in house. Hired directly. On payroll. We still partner with specialist plumbers and electricians, but the same two licensed shops we have used for seven years. No chain of strangers.

What it costs

In-house labor is 15 percent more than chaining subs. We eat most of that in our margin and pass a small amount on. It is worth it. Nothing is cheaper than a job done right the first time.

If you are evaluating contractors, ask who is on site daily. For more, see our post on red flags when hiring a contractor.