When you hire a contracting company for your remodeling project, you might wonder how well the team works together and how the workers receive payment. This is a common concern and question.
Opal Enterprises has been in business for 20 years, and successfully so. We are transparent in how we structure our company, and this is how the majority of remodeling companies are structured in the state of IL.
Let Opal Enterprises handle your project in the Bolingbrook, IL, area.
Differences Between Subcontractors and W2 Installers
The most significant difference between subcontractors and W2 installers is how they are hired and paid. A W2 installer is hired one at a time and after interviewing, understanding, and testing what their skill level is. A crew needs to be made up of three to six individuals. The challenge is being able to hire a group of skilled workers at the same time or relatively at the same time.
When a contractor creates a team that has never worked together before, the results take time to fully realize. Do they work well together? Is their skill sets the same? Will they find a team “love” for one another? If one crew member leaves, does this create a hole in the team you created?
Because the crew person is a W2 employee, they are entitled to vacation and days off, and this very often makes it very difficult for the general contractor to keep a crew size where it needs to be. What we have learned is that homeowners are not patient or willing to be the “guinea pig” while the newly formed crew practices and learns and finds their flow.
A corp-to-corp relationship, or a subcontractor relationship, is smoother to work with, as the team comes pre-built together. Everyone knows how to work together, skill levels have been tested and formatted within the team, and the job site flows much smoother.
A pre-built crew is a set of people who are skilled in their craft and want to work. But they are not a fully functional company that has an office, showroom, administrative support, or marketing abilities to earn customers.
Pros and Cons
The benefits of hiring subcontractor crews are their working relationship. If one team member is slacking, another team member can correct them without much fuss. They work as a family.
In contrast, placing even two to three W2 employees together can lead to disagreements and project delays. When one employee does not agree with the other W2 employee’s technique, they can begin to argue until someone walks off the job site. In other projects, the W2 employee will call out because they are not interested in working with the rest of the team.
W2 employees get paid whether the project is complete or not. Subcontractors only get paid when the project is 100% complete and lives up to the homeowner’s standards.
Do Homeowners Benefit?
While how the crew gets paid can be a concern at the beginning of a project, most homeowners are not too concerned once the project is complete. If the remodeling project went off without a hitch, homeowners do not notice the difference. However, delays and disagreements can result when teams do not work well together.
A benefit to homeowners is that Opal Exteriors offers workers’ compensation and liability insurance, and we also require subcontractors to carry their own workers’ compensation that names Opal Enterprises in the policy. These measures mean that homeowners do not have to worry about liability issues on the worksite as there is double coverage.
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Opal Enterprises Company Structure
Opal Enterprises has used both methods in the past and has found that corp-to-corp is preferable. Opal has been in the remodeling business since 2003, and our experience is that most companies use a corp-to-corp business structure. This model allows us to recruit top-notch artisans and complete projects to 100% with little to no issues.
We are well established and have high ethical standards, so every crew we work with will be paid on time and be able to access the benefits they are entitled to. Contact Opal Enterprises for your Bolingbrook, IL, remodeling project today.