# sub contracting info



## BCbound (Aug 26, 2008)

Hey guys wondering how the subcontracting thing works? Looking to do my own thing in the Lower Mainland area(B.C. Canada). What insurnace and licences I might need. What would be an hourly rate I could charge for 2 guys+saw,gas and climbing equipement. Basically all the gear but chipper/truck. Would do all the work and have the material ready for pick-up. Is this a concept that could even work or should i going about it a different way. Any info would be great. Also if you heard of this in other areas(calgary, edmonton, toronto, winnepeg, the wife gets transfered a lot) that it's work out please tell the story. PM's welcome.

Thanks in advance.


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## BC WetCoast (Aug 27, 2008)

BCbound said:


> Hey guys wondering how the subcontracting thing works? Looking to do my own thing in the Lower Mainland area(B.C. Canada). What insurnace and licences I might need. What would be an hourly rate I could charge for 2 guys+saw,gas and climbing equipement. Basically all the gear but chipper/truck. Would do all the work and have the material ready for pick-up. Is this a concept that could even work or should i going about it a different way. Any info would be great. Also if you heard of this in other areas(calgary, edmonton, toronto, winnepeg, the wife gets transfered a lot) that it's work out please tell the story. PM's welcome.
> 
> Thanks in advance.



Most important you need a Worksafe BC number (Worker Compensation). Then your truck will need insurance (ICBC - Insurance Corp of BC - Gov't controlled and only supplier of basic liability vehicle insurance. Private companies can only supply supplemental insurance). Then you should have some General business liability just to cover your a$$ in case you break something.

Hourly rates here range from $120 - $180/hr for 2 men (climber and groundie), truck and chipper (climbing gear, saws etc etc). So without the truck and chipper guage yourself accordingly.

I'm sure there is a market for subcontracting, but there are lots of companies so you need to get lots of feelers out. Finding climbers is a challenge. I think your best opportunity may come from the little guys who may need a climber to fill a gap. 

Good luck.


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## gavin (Dec 21, 2008)

i'm sure you've heard a lot of this but i'll try to cover what i can. i think subbing will get you work because people don't like to have to pay WCB rates and all the gov't witholdings (keep in mind that you will have to pay that yourself). you'll have to figure out if you want to incorporate (limited liability) or do a proprietorship/partnership (unlimited liability).

call WCB for the definate details, you can't take my word for all this!
the WCB rate for climbers is dropping by a lot in b.c. for 2009:

http://www.worksafebc.com/insurance...rowse_sectors_and_subsectors/cu.asp?id=764062

so basically if you *incorporate* you'll have to pay $7.50 to WCB for every $100 you pay yourself to a maximum annual salary of $68,500 (so the most you will have to pay is $5,137. keep in mind thats based on how much you pay yourself. you can right off expenses before that. but also keep in mind if you try to keep that rate low by paying yourself a lower wage, that will lower the amount you will get paid if you get hurt.

if you don't incorporate then you need to look into the personal optional protection if you want yourself to be covered. all *employees* need to be covered though.

*a break down of gov't witholdings if you're a corporation:*

you'll have to use the federal tax online program to calculate withholdings but if i remember right its something like this.

CPP about 5% gets withheld from the employee
CPP the employer pays an equal amount to the federal gov't

the federal tax online program from the CRA website tells you how much federal and provincial taxes to withhold based on how much you pay yourself or an employee. if you are a proprietorship/partnership your business income will just "trickle through" and become your personal income.

not sure about proprietorship/partnership (but i assume its the same) but as a corporation i don't need to pay EI because i can't claim it. i can't "lay myself off" so i can't collect EI benefits. if there's no work, i won't make any money...such is the case right now.

liability insurance: it will be hard and in my opinion wreckless if you don't get liability insurance. there's info on arborist site about it, do a search. i think a guy from ontario gives good rates for arborists.

my mind is fried and i lost track of my thoughts halfway through everything iw as trying to say, so i appologize for how scattered this is. anyways check out these websites for starting up a business:


http://www.bcbusinessregistry.ca/introduction/index.htm

https://www.corporateonline.gov.bc.ca/corporateonline/colin/static/colin/html/index.html

http://www.smallbusinessbc.ca/


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