Yes - that makes a lot of sense and is essentially what I do on every project I manage as well, as you don't want the costs side to be a black box.
I suspect it is because initially Joey lacked the skill set on the fabrication side so simply sought a more JV type relationship where his production costs were capped at 65% and he didn't have to handle any of that aspect.
It seems that approach didn't work well, so he took over the costs base - which is a good move because it enables you to focus on margins which is important once you are doing lots of jobs.
Good morning MrJitty!
I very much agree with you on why Joey gave so much control to CM at first due to Joey's lack of knowledge on the production end of the projects.
I also believe Joey was becoming much wiser when it came to protecting his business interest. Imo, that is why he removed CM from doing all metal works, and hired MSM instead to do the major production of the waterfalls. It gave Joey much more control. It does show little by little he was gathering more business knowledge he needed.
It's tragic that Joey never got to see what his new profit margin could have been in the future by making much wiser business decisions.
Imo then he would have realized more, and more he had made the right decision by taking CM out of the equation.
To most business owners their good reputation is everything. It all starts, and ends there. Imo
One bad actor connected in anyway to the business owner can have disastrous results. Especially for someone as honest as Joey. I wish he had awoke to the facts much sooner about CM... realizing he was much more of a liability than he had ever been an asset.
Joey was constantly trying to clean up the messes, and put out 'fires' CM had created. Joey knew if he had not done so it would reflect badly on his own business reputation.
Imo, CM the conman knew this all too well, and used Joey's integrity, and honesty to his advantage.
Not only does my hubby gets quotes from several self employed welders, but they must show him each, and every time they remain in good standing with the proper current licenses, certifications,, and insurance is all up to date. He keeps all of these documents in every individual project folder.
He said the quickest way to spot an unethical sub if they do not produce any of the documents he requires, and instead starts making excuses hemming, and hawing why they can't produce them when asked.
He has a long list to choose from since the welding business is one of the most sought after professions. Many projects requires the welder to be certified.
The ones on his list that didnt pass muster he crosses off the list notating the reason.
He does this for himself of course, but also for other businesses, or private customers when they contact him, and he is too busy at the time to do it himself like they wanted.
He wants to make very sure he only recommends other ethical self employed welders who will do a great job for them.
There are truly so many facets a business owner must take consideration. Even those they recommend can have an indirect result on one's own business reputation.
Jmoo
