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Do You Take Bids from Subcontractors? Don’t!


New member
Overcharged-by-agency.jpg The reason we take bids from subcontractors is that we don’t know any better way.

There is a better way!

First, determine exactly what you want them to do. Prepare a subscope of the master scope detailing the work you assign them.

Xactimate then generates a labor number of the trades and the time involved to complete all aspects of what you want them to do.

Then, simply apply a proprietary formula to that total labor number … I recommend 65% of the total, and that’s your labor offering.

A drywall, texture, and paint job in Boston will produce a $65 per hour rate for the sub while you lock in your labor profit too.

Don’t take bids! When you do, you act no differently than a homeowner. You’re not a homeowner. You’re a business owner. You know your numbers, and you should determine the scope and then the labor you will pay for it.

Stay in charge of your work, and don’t surrender your labor controls!

If you are still unclear about taking charge of your labor and subcontractor relationships, call me, and I will help you!


New member
Not sure if I'm understanding what you're saying. Can you clarify? You're saying do an xactimate, then offer your subs 65% of that and pocket the other 35% as well as O&P? And for those adjusters that require invoices?


New member
Yes, that's exactly right! You offer the sub a strong labor share, and you secure your portion. Adjusters will only ask for an invoice when you convert a task to a BIDITM. They have no interest in your labor agreements with subs.