A builder calls. She has three renovation jobs that need plumbing. She wants you to handle the plumbing work on all three. Full scope. She'll handle customer relationship and invoicing. You quote, you do the work, you invoice her.
This is subcontracting. You're working for a contractor instead of for end customers. The advantage: consistent work, no marketing, no customer acquisition cost, no chasing payments.
The disadvantage: lower margins, less control, and if you don't set it up right, you'll be working more for less money than if you'd gotten the customers yourself.
Most tradespeople treat subcontracting opportunistically. Someone calls with work, you take it. You don't have a pricing system. You don't have quality standards. You don't have payment terms. You just do the work and hope for the best.
Then you get stung. The contractor delays payment. They dispute the quality. They complain about the price. You regret the whole thing.
The smart tradespeople treat subcontracting as a business channel. They have systems. They price correctly. They manage quality. They build long-term relationships that generate consistent work.
When Subcontracting Makes Sense
Subcontracting isn't for everyone. It works if:
You have capacity. You're not fully booked. You have time and resources for additional work. A contractor calling you doesn't interrupt your planned work — it fills your gaps.
You don't have your own customer base yet. You're new to the area or your trade. You don't have relationships. Subcontracting gives you steady work while you build your own customer base. This is valuable short-term.
You prefer predictability. Some tradespeople like the flow of regular subcontracting work — no marketing, no sales, just work. If that's you, subcontracting is a good fit.
You're willing to accept lower margins. Subcontracting pays less than working direct to customers. If you're okay with that trade-off for simplicity, it works.
But if you're fully booked, have a strong customer base, and want to build a premium business, subcontracting dilutes your time and profit. Better to focus on direct customers.
Pricing Subcontract Work Correctly
Most tradespeople underprice subcontract work. They think: "The contractor already has the customer. There's less risk. I should charge less." Wrong.
Subcontracting should pay the same as direct work, or more, because:
You have less control. On your own jobs, you control the timeline, the scope, the customer. On subcontract work, the main contractor controls these. Changes happen. Delays happen. You're at their mercy.
You have payment risk. You're relying on the main contractor to pay you. If they don't pay the customer, that's not your problem — but it might be if they go bust.
You have reputational risk. If something goes wrong, the customer blames the main contractor, but you get the blame too. You have no direct relationship with the customer to salvage trust.
You lose upsell opportunities. Working direct to the customer, you spot additional work and upsell. Subcontracting, you do only what's quoted. No upsells.
So your subcontract rate should be the same as your direct rate, or higher. If a contractor pushes back on price, they're testing you. Hold firm. If they won't pay fair rates, there are other contractors.
Pricing formula: Your rate should be at least 85% of what you'd charge a direct customer. Ideally 100%. The contractor's margin comes from managing the customer relationship and project coordination, not from squeezing your rate.
How to Get Subcontract Work
Build relationships with builders and contractors. Attend local networking events. Join trade associations. Get to know the larger contractors in your area. Tell them you're available for subcontract work.
Do good work and they'll call again. Your first subcontract job is a audition. Do it excellently. On time. On budget. To the agreed standard. The contractor will come back.
Make it easy for them to work with you. You need to be responsive. When they ask a question, answer the same day. When they need a quote, provide it quickly. When they need to adjust a timeline, accommodate them if possible. You're the service provider. Make their life easier.
Get listed on subcontractor networks. There are online platforms where main contractors find subcontractors. MyBuilder, Checkatrade, Rated People all have subcontractor sections. You can list yourself as available for work.
Talk to other trades about referral relationships. A plumber might need an electrician. An electrician might need a tiler. Build relationships where you refer work to each other and collaborate on jobs.
The Contracts and Terms You Need
Never start work without an agreement. Not a handshake. Not a verbal understanding. A written agreement.
Scope of work: What exactly are you doing? What's included and excluded? Specify.
Price: Fixed price or time and materials? What's included in the price? What's extra? Be clear.
Timeline: When do you start? When should you finish? What counts as on-time completion? Be specific about dates or milestones.
Payment terms: When do you invoice? When do you expect payment? 30 days? On completion? Weekly? Specify. And specify what happens if they're late — do you charge interest?
Quality standards: What's your standard? Do you warranty the work? For how long? What happens if there's a defect?
Changes: What if the scope changes? Do you adjust the price? Do they need to request changes in writing?
You don't need a lawyer to draft this. A simple one-page agreement works. Include all the above points. Both parties sign. You keep one copy.
This protects you both. The contractor knows what to expect. You know what you're delivering. Disputes are fewer.
Quality Control With Subcontractors
If you're hiring subcontractors to work for you, quality is your responsibility. The customer doesn't know the subcontractor. They know you. If work is poor, you take the hit.
Choose carefully. Don't hire the cheapest option. Hire people who do good work, even if they cost more.
Give clear standards. Tell them what you expect. Walk them through the job. Show them examples of good work.
Inspect the work before handing it to the customer. Always. Every job. This catches problems before the customer sees them.
Have them fix problems immediately. If the work doesn't meet standard, it gets redone. No passing on substandard work to customers.
Build relationships with reliable subcontractors. Once you find someone who does good work, treats customers well, and is reliable, keep working with them. Give them repeat work. Pay them fairly. They become your team.
Managing Cash Flow With Subcontracting
Subcontractors work on your timeline. You might pay them upfront or weekly. But your customer (the main contractor) might pay you in 30 days.
This creates a cash flow gap. You pay your subcontractor on day 1. The main contractor pays you on day 31. You're out of pocket for 30 days.
Solution one: Negotiate payment terms. Ask the main contractor if they'll pay faster. Explain that you need to pay your team. Some will accommodate you.
Solution two: Get a deposit. Ask for 50% upfront before you start. This covers your initial costs. Then the final payment comes when you finish.
Solution three: Invoice immediately upon completion. Don't wait. As soon as the work is done, invoice. The sooner you invoice, the sooner you get paid.
Solution four: Follow up on overdue payments immediately. If a contractor is late, message them same day: "Just checking — did you receive the invoice? I want to make sure there were no issues." Don't let invoices age without follow-up.
Building a Subcontracting Portfolio
If subcontracting is your main channel, diversify. Don't work for just one contractor. If they go bust or stop calling, you're stuck.
Target a mix: some builders, some facilities managers, some agencies, some other tradespeople. If any single contractor represents more than 30% of your income, you're too dependent. Diversify.
Also keep doing some direct customer work. Even if it's just 20% of your business. This keeps your customer skills sharp, generates better margins, and provides backup income if subcontracting dries up.
When to Stop Subcontracting
As your business grows, subcontracting becomes less attractive. You're making lower margins. You have less control. You're not building your own customer relationships.
Once you have a healthy customer base and you're regularly turning down work, stop taking subcontracts. Focus on premium direct customers instead.
Subcontracting is a growth tool for when you're starting out. It's not a long-term strategy for a premium business.
The Subcontracting Opportunity
Subcontracting gets a bad reputation because so many tradespeople do it poorly. They underprice. They don't have systems. They end up resenting the work and losing money.
Done right — with clear pricing, good contracts, quality control, and diversified relationships — subcontracting is a solid way to generate steady work while you build your customer base and your brand.
Just don't confuse it with running your own business. Subcontracting is working for someone else. Once you've built your customer base, transition to being the main contractor. That's when you build real profit.