By Daniel C. Brown
When Walt Gammill Jr. talks about maintaining long-term relationships with his subcontractors, he means long-term. The Boise, Idaho, remodeler has worked with three of his subcontractors – an electrician, a plumber, and a sheet rock installer – for more than 20 years. But Walt's flooring sub holds the record; he's worked with Walt for close to 30 years.
"We all work well together," says Walt. "And occasionally a sub will refer new business to us. When they do that, it's a real compliment."
Walt, the owner of Gammill Construction, an $800,000 remodeling company, employs two full-time carpenters, but he hires subcontractors for other work ranging from excavation and concrete to plumbing and heating/ventilation. As a result, it's crucial for him to maintain strong relationships with the best available trade contractors.
Some contractors have ironclad rules for working with subs. Not Walt. "We are less structured," he says. "We want to work with people we like. One advantage to these long-term relationships is that we have a pleasant working environment. The subs all know each other, and they know my guys."
For remodelers who want to keep their own subs happy, Walt offers the following suggestions:
- Treat subcontractors like employees. Ask their opinions, and listen. Place value on their expertise.
- Pay subcontractors on time. Gammill Construction usually pays subs on a time-and-materials basis. At the end of the month, subs give Walt an invoice, and he pays by the 10th of the next month. If someone needs a draw on their earnings ahead of time, Walt usually provides it.
- Stay loyal to your subcontractors. "We only look outside of our regular network when someone can't get to the job when we need them," says Walt. "If a sub knows he's going to do the next job for you, he'll do a better job."
- Give subs as much advance notice as possible – but expect the subs to respond to your schedule.
Having these long-term relationships means both Walt and his subcontractors know how the other operates. That saves time; not everything needs to be spelled out for each job.
Sometimes Walt solicits a subcontractor's bid to include in his own bid, but often, he creates a "bid" for them. "Our regulars know how we want things done," he says. "Doing business is easier that way."
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