Originally Posted by 72opp
There is a company based out of Hedrum, MN (Schnabel) who take 50% of profits but reimburse contractors 50% of costs. I cannot put my finger on it, but I do not like that setup. But they are a regional that cover parts of ND, SD, and MN (parts not all) and they can hold a grudge.
I started out being a sub-sub-contractor for Schnabel. I thought I was making good money ($1000.00 a week at first) but then the "good ole boy" network started up and another contractor with a personal relationship to Schnabel took over 95% of work orders. That's when I started contracting with other nationals. Schnabel found out about it and dropped me without paying about $2000.00 in unpaid invoices. Since then I keep hearing things through the grapevine that Schnabel and their sub-contractor have been pooh poohing my reputation and quality of work.
OK I don't think you are looking at this correctly
This Schnabel is paying 50% of the expense:
1) charge for fuel to and from jobsite
2) charge for fuel to and from landfill
3) charge for the landfill bill
4) charge for 3 men for 8 hour day at $42.00/hour
5) charge for cost of the daily insurance rate for GL, WC, Auto ins etc
6) charge for the photography time with uploading
7) charge for the clerical time at $28.00/hour for invoicing
8) charge for the utility bill for electrical usage for lights and computer usage
9) charge for vehicle and equipment depreciation
Heck the way I see it the labor will eat up 150% of the total cost of the job and they are paying 50% of these costs and then 50% of the leftover (profit)......HMMM sounds like you could come out like a bandit...just got to know how to work the system