Most general contractors
maintain a crew of hourly
wage earners and hire subs for
specialty work. But to adapt
to the sluggish California
economy, some GCs here
have shed employees to cut
overhead, and created a new
strategy for handling the
occasional larger job: Instead
of maintaining a regular crew,
they hire other contractors to
do the work they can't complete
themselves.
Financially, hiring another
GC is no different from hiring
a sub: You pay a flat
hourly rate or a lump-sum fee,
and the company you hire
takes care of labor-related
paperwork like taxes and
workers compensation.
Peers as partners. According
to general contractor
Michael Hamman of Daly
City, Calif., working cooperatively
with another general
contractor is more like a
temporary partnership than a
contractor-subcontractor relationship.
"It's business among
peers,"