How to Manage Sub-Contractors for a Window Replacement Business?

July 11, 2024

by a searcher from University of South Carolina - Darla Moore School of Business in Charleston, SC, USA

Currently under LOI with a window replacement business. Basically, they sub out all the installations and the owner manages the sales team who provides the quotes.

Does anyone here have experience with businesses like this or similar ones?

I'm worried about managing the sub-contractors who do the installations. The seller says it's easy, but I'm not sure about that. I imagine it must be difficult.

What are some things to look out for with businesses like this?

They have a good reputation and it's got stable earnings, so overall I'm pretty happy about the deal. What are some specific issues to examine in the due diligence?

Reply by a professional
from The University of Georgia in Atlanta, GA, USA

Thanks for the shoutout, Luke. Use of subs is definitely advantageous as you can pivot up/down quickly to meet customer demand without having to manage employees. You'll want to ensure you have a pretty airtight subcontractor agreement with them to ensure quality of workmanship, insurance coverage, and even clawback on any customer bad debts should the customer issue be with the installation (vs product). I would suggest you engage a lawyer to ensure you have dotted your i's and crossed your t's on the agreement.

Reply by an intermediary
from Rochester Institute of Technology in Toronto, ON, Canada

I only have experience as a customer, but don't most similar businesses contract the installation out? I just ordered new flooring for my house, and the family business, which I am the customer of, contracts it out. Even Home Depot does it.

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