Allowing Side Jobs Increases Risk for Loss and Can Drives up Material and Equipment Costs

side jobs

RCS Influencer Marty Stout says he is very old school when it comes to what has come to be known as side jobs.

We all have a cousin that has a neighbor whose secretary needs a roof or a roof repair and that is a side job. The problem is that her neighbor also needs a roof and their neighbor and so forth.

In that part of town, there is a real roofing company with real overhead and real employees that has made a real commitment to do a good job and be around for the long haul. That company has insurance and is required to provide for their employees a long list of benefits and all that costs money. And now that real roofing company is competing with the guy doing the side job.

Some justify it by saying, “Well I only do small jobs and repairs” thinking that it will drive the real roofing company that only wants to do small jobs and repairs to do bigger jobs. That contractor is then competing with the real roofing companies that are in that space and they move up and so on and so forth.

I support people that want to start and run companies, it is rewarding in many ways. So, go out and get set up and compete for business with all of the required documentation that your local area requires.

If you are a roofing contractor and you know your guys are doing side jobs and you allow it you are only exposing yourself to more workers comp losses, more material and equipment costs and smaller contractors moving into your space.

Martin Stout is president of Go Roof Tune Up, Inc.  See his full bio here.

 

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One Response to “Allowing Side Jobs Increases Risk for Loss and Can Drives up Material and Equipment Costs”

  1. TedV

    Sometimes they get injured and come to work to have the accident too. Yup, people, what are you gonna do.

    They are not evil, just not seeing the whole picture and all we can do is paraphrase the story in hopes of saying it just right so it becomes clear.

    No one wants a minority partner (too much second guessing) but any partnering with employees tends to be a winner. My guys love it when I tear off a roof with them. I like working with them too when I can but the real dirty work, dealing with regs, taxes, governments and marketing, selling, ya-I’m the small guy so sometimes I make the tax deposit and do the payroll and haul the paper to the accountant.

    Gee, I could switch to “side jobs” too. I’d make more and work less.

    Reply

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