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Monday's Ask the Experts: Receiving subcontracts versus bidding

February 22, 2010
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Monday''s Ask the Experts question from a cleaning professional on the International Custodial Advisors Network(ICAN) "Ask the Experts" page: Can someone tell me if receiving subcontracts to clean offices is as beneficial as bidding on contracts myself?
The answer
Obviously, the contract holder has the financial advantage since all the proceeds from the job go to that company. In a subcontract arrangement, the primary contractor holds back some funds to pay for costs of job procurement, invoicing, inspections, and other office expenses, as well as a profit for the company.
That is not to say that a subcontractor cannot make an adequate income from the work, but your question was about what was most beneficial. To receive the full payout for the job is clearly the most favorable arrangement, but there may be circumstances where subbing is economically acceptable, such as ... — Lynn E. Krafft, ICAN/ATEX editor
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