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  1. #1
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    Subcontracting HVAC technical services???

    Hello all this is my first post on this forum. I'm apart of a facebook technician group and I would normally ask this question there but my service manager is apart of the group. Has anyone heard of, or any business owners utilized a service technician as a subcontractor? Everyone has heard of companies using subcontractors for installs but I wasn't able to find much information about this topic in my research. If this is actually a real thing what are some of the pros and cons being a tech subcontractor? If I were to approach contractors about the possibilities what are some of the things I should bring up and negotiate? Would I need insurance? I have no idea how this would work. Any input would be appreciated! I can supply you with more information about me upon request. HAPPY NEW YEAR EVERYONE!

  2. #2
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    Are you saying that when a Co can't figure something out,they will call for you, THE ANSWER MAN? The KNOW-IT-ALL?

  3. #3
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    Quote Originally Posted by TechmanTerry View Post
    Are you saying that when a Co can't figure something out,they will call for you, THE ANSWER MAN? The KNOW-IT-ALL?
    Not looking to consult if that's what you were thinking. More like I run calls for a company around the hours that i'm available which would be 2nd or 3rd shift. Basically running after hours emergency calls. Not looking to get actually hired on with a company unless they are ok with my availability.

  4. #4
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    You want the company to pay you as if you are a subcontractor ....correct ? Thats fine but im pretty sure you have to atleast get a class C license before You can be truly legit .

    Granted you can fly under the radar for a while if you want , and they can 1099 you , but after a while the City might be asking questions why your getting 1099 if youre just John Doe....

    If you get a class c , and you are now Daves Handyman Services, then its normal to get a 1099 after doing over 900 dollars worth of work and nobody questions it

    The easiest way would be staying on payroll at a agreed upon price like youre a regular employee, like say after 5 i get 50 hr
    Last edited by Snapperhead; 01-02-2018 at 05:40 AM.

  5. #5
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    Quote Originally Posted by Snapperhead View Post
    You want the company to pay you as if you are a subcontractor ....correct ? Thats fine but im pretty sure you have to atleast get a class C license before You can be truly legit .

    Granted you can fly under the radar for a while if you want , and they can 1099 you , but after a while the City might be asking questions why your getting 1099 if youre just John Doe....

    If you get a class c , and you are now Daves Handyman Services, then its normal to get a 1099 after doing over 900 dollars worth of work and nobody questions it

    The easiest way would be staying on payroll at a agreed upon price like youre a regular employee, like say after 5 i get 50 hr

    Thanks for your reply. Yes, paid as a sub contractor. I'll look up the laws in Texas and post them when I get home today. I would like to run service calls and be able to do so under the company's state license (if possible). I realize the nature of this post will get me a wide variety of answers since people live in other states and that if there were a contractor willing to do this things like pay, who's vehicle I use, inventory, etc would all need to be negotiated.

  6. #6
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    Quote Originally Posted by techdave View Post
    Thanks for your reply. Yes, paid as a sub contractor. I'll look up the laws in Texas and post them when I get home today. I would like to run service calls and be able to do so under the company's state license (if possible). I realize the nature of this post will get me a wide variety of answers since people live in other states and that if there were a contractor willing to do this things like pay, who's vehicle I use, inventory, etc would all need to be negotiated.
    As long as YOU are working for a company as a sub & YOU display THIER TACL lic # on YOUR truck or a site sign in yard you are legal here in Texas. I would require you to carry liability ins. with my company named as insured as well cause we would eventually get audited & billed for the coverage unless I had an insurance certificate from your insurer. some may want to just pay it for you.
    Most of us that owned a HVAC business just subcontracted duct work since we can watch the progress & QUALITY. Hard to send a non employee on a service call as that could end up a cluster frack resulting in loss of customer. Plus I had noncompete agreement with my employees so IF I caught you doing HVAC work after hours it would now be your full time job.I had ZERO tolerance for that .
    IRS says that you as a sub must provide ALL tools & equipment, no set hours etc or you become a full time employee. You will get a 1099 unless you & owner have an illegal cash arrangement.

  7. #7
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    Quote Originally Posted by oldguy1949 View Post
    As long as YOU are working for a company as a sub & YOU display THIER TACL lic # on YOUR truck or a site sign in yard you are legal here in Texas. I would require you to carry liability ins. with my company named as insured as well cause we would eventually get audited & billed for the coverage unless I had an insurance certificate from your insurer. some may want to just pay it for you.
    Most of us that owned a HVAC business just subcontracted duct work since we can watch the progress & QUALITY. Hard to send a non employee on a service call as that could end up a cluster frack resulting in loss of customer. Plus I had noncompete agreement with my employees so IF I caught you doing HVAC work after hours it would now be your full time job.I had ZERO tolerance for that .
    IRS says that you as a sub must provide ALL tools & equipment, no set hours etc or you become a full time employee. You will get a 1099 unless you & owner have an illegal cash arrangement.
    Thanks for your reply. I found my air conditioning and refrigeration contractors occupations code and admin rules book and became familiar with what being a sub contractor meant and the responsibilities of the licensee and the contracting company regarding sub contractors. I was not aware of any rules set by the IRS? I'll look into it. You make some valid points. I was hoping that I would get replies from current and former business owners. I suppose for this to actually work the tech and owner would need to have a high level of trust between each other. My first service manager did this sort of thing for the owner of the company he now works for (did not at the time), he would take service calls that came in when the owner would take his techs on trips in the off season. Thanks again!

  8. #8
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    If you act like an employee then you are an employee meaning it exemplifies the 1099 contractor/independent consult/taxation of IRS. This is a defined area. 1099 or utilizing a misc 1099 has a 60% chance increase of being audited by the IRS. Not that an IRS audit=your doing something wrong or didn't pay taxes.

    Many, many years in this area dealing with companies that misunderstood and mistreated 1099 contracts and regulations.
    Thus the problem one poster mentioned about standards of customer service and who the end usercustomer is really dealing with in a service industry and service task "HVAC emergency call" or a tech service call.

    I'm certainly NOT going to wear ACME COmpany HVAC brand or promote it, their vehicle or utilize any of there tools if I am working independently under a 1099 contract and just taking on their service load.

  9. #9
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    unfortunately, in FL the DBPR has designed the HVAC class a , B contractor license as a glorified way to get in bed with the state and the state to generate false regulations to protect the people. I just laugh at the bumper stickers I see on HVAC contractors work trucks "hire a licensed HVAC contractor" like the # by the state automatically gives you cart blanc as an ethical, educated, continuelly proven contractor- reality it doesnt but people buy into the false advertising.

    Thre real workhorses are the educated, certified conscious, tool demanding, continuing education, HVAC technicians. * sounds like you TECH DAVE

    I would love to take to the Board of DBPR legislation to pass another tier of HVAC independent contracting that didn't involve the dogma ways that the state of FL has set up JUST for the HVAC contractor. Utilize the certifications properly that HVAC technicians goes through.

    Essentially if your not an HVAC contractor but are well educated in the field and trained you're either working for a contractor or an organization (commercial HVAC) either way an employee NOT independently, even if you have years of experience and certifications in the field.

    The only true independence is jumping the hoops as a FL HVAC class a, b contractor pay the $$$ and get the contractor # to advertise.

    * note Im not against contractor licencing- the FL machine is broken. This same thing happened in real estate- any one with a pulse could take the RE test get a real estate license they finally upd the credentials, continuing ed and costs to keep the wanna bes and the people abusing the field or industry- its gotten better but still needs some work.
    Last edited by Profjames; 01-03-2018 at 01:29 AM. Reason: spelling

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  11. #10
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    Most companies will fire someone when they find out that you are doing work for other companies after hours.
    Contractor locator map

    How-to-apply-for-Professional

    How many times must one fix something before it is fixed?

  12. #11
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    Quote Originally Posted by techdave View Post
    Thanks for your reply. I found my air conditioning and refrigeration contractors occupations code and admin rules book and became familiar with what being a sub contractor meant and the responsibilities of the licensee and the contracting company regarding sub contractors. I was not aware of any rules set by the IRS? I'll look into it. You make some valid points. I was hoping that I would get replies from current and former business owners. I suppose for this to actually work the tech and owner would need to have a high level of trust between each other. My first service manager did this sort of thing for the owner of the company he now works for (did not at the time), he would take service calls that came in when the owner would take his techs on trips in the off season. Thanks again!
    Just thinking, in Texas to replace parts you must be a license holder or be a Registered Technician . I can't remember if a Tech must register each year as employed under a specific license holder or not. You need to contact DLR & get clarification. You don't have to be a Tech to install a complete system or do duct

  13. #12
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    Quote Originally Posted by beenthere View Post
    Most companies will fire someone when they find out that you are doing work for other companies after hours.
    That was a rule I had that was SET IN STONE. I didnt care if you had side job as long as it wasnt HVAC Or inteferred with doing your fulltime job. I paid top dollar & kept em busy.

  14. #13
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    Quote Originally Posted by beenthere View Post
    Most companies will fire someone when they find out that you are doing work for other companies after hours.
    Hence what the original OP was "angling" to develop with a contractor. The INDEPENDENT CONTRACTOR on 1099 (misc) can never be told what, who they can service hence the word independent contractor. Unfortunately, in FL (Florida) you cant advertise for HVAC work unless you have an HVAC contractor license.

    I think many are pointing out to the OP that the contractor would say whats in it for me Mr./Mrs Indepedent contractor: I want my company promoted, my policies followed and my hours operated.

    The only thing in HVAC in FL that DOES not require TO WORK UNDER a contractor license: that I am aware of reading through the DBPR OF FL =is cleaning HVAC units- which is a surprise because to clean an HVAC coil CORRECTLY takes a level of expertise and experience and proper tools and chemicals. This proves the DBPR has no logical sense or education on the industry when they make these policies of licensing. Again disclaimer for FLORIDA.

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