Whether you are outsourcing a job overseas or hiring an independent contractor to work for your business, know what you are getting into - It can save you from a lot of headaches and financial burdens in the long run.
I got the idea for this article from an experience at home. It provides a good cautionary tale. So have patience while I talk about tree trimming for a minute... there's a lesson in here.
I had a giant tree in my backyard that had some big dangerously positioned limbs hanging over one of the neighbor's roof. A heavy wind or rain storm could of easily broken off one of the big limbs and caused a lot of expensive damage to the neighbors property. So I researched local tree trimmers and after getting some estimates (and interviewing them) finally hired a tree service to remove the dangerous limbs. They weren't the most expensive, nor the cheapest, their estimate was right in the middle and all their credentials and insurance checked out. The tree trimmers were very professional. The guy who was in the tree was fully dressed with safety equipment and mountain climbing gear, and the guys on the ground worked together to rig up pulley systems to control where the cut branches would fall. Everything went fine. The tree trimmers did a great job, the tree and backyard looks great. The fact that I could see these guys were professionals who knew what they were doing and took safety seriously was comforting also. I would definitely hire them again.
Here's the flip side of the story... the person who owns the rental house next to me has a giant tree in his front yard with big dangerous limbs hanging over his house. The owner was doing some light renovation to prepare the house for new tenants. He hired someone to prune his tree and trim the big limbs over his house. When I saw how the neighbor's tree trimmers were trimming the tree, my jaw fell open. There were two guys with a hand saw and a ladder trying to trim big branches off of a 50 foot tree! No safety equipment, no mountaineering gear, no chainsaw, no team on the ground, no shredder to get rid of the fallen branches, nothing! I am guessing that since they didn't have the proper tools to do their job, they probably didn't have workmens compensation or any type of liability insurance either. Aside from the safety concerns (the guy up in the tree was barefoot, topless, and had a handsaw - no safety equipment!) he obviously didn't know how to properly trim the branches. He would saw the branch halfway and then let it break off and fall to the ground! Thank heavens those guys got through the job with no one getting hurt. The tree unfortunately looks terrible. It was a beautiful tree, hopefully it won't rot and die from being chopped to pieces.
Here's what I learned... you definitely get what you pay for. When I look at the people the owner next door hired, I am guessing he went with the cheapest estimate. Since I never see the owner around I'm also guessing he doesn't have the time or interest in checking out who he's hiring. From a business stand point this is foolish in my opinion. He didn't look at the business risks: If those guys damaged his house in the process of trimming the tree, he may have had a hard time collecting insurance since these guys weren't professionals. Looking at the tree you can tell it wasn't professionally trimmed. Also, if either of those workers got injured on the job, they could of sued the owner and put a lien on his house. Finally, if the tree dies because it was trimmed improperly, then its going to cost the owner even more to have a dead 50 foot tree removed. Of course a big dead tree can also fall down in harsh weather and damage property or pedestrians on the sidewalk, translation = possibility of a lawsuit if the tree dies and isn't removed. Hopefully none of these things will happen. Observing this situation reminded me that one always needs to do a little risk assessment in any type of business situation.
The slogan "Buyer beware" is very true. I would also add that sometimes hiring the least expensive contractor or supplier can cost you more in the long run. I hope this story reminds people to do your homework and know what you are getting into, especially in business situations.
I got the idea for this article from an experience at home. It provides a good cautionary tale. So have patience while I talk about tree trimming for a minute... there's a lesson in here.
I had a giant tree in my backyard that had some big dangerously positioned limbs hanging over one of the neighbor's roof. A heavy wind or rain storm could of easily broken off one of the big limbs and caused a lot of expensive damage to the neighbors property. So I researched local tree trimmers and after getting some estimates (and interviewing them) finally hired a tree service to remove the dangerous limbs. They weren't the most expensive, nor the cheapest, their estimate was right in the middle and all their credentials and insurance checked out. The tree trimmers were very professional. The guy who was in the tree was fully dressed with safety equipment and mountain climbing gear, and the guys on the ground worked together to rig up pulley systems to control where the cut branches would fall. Everything went fine. The tree trimmers did a great job, the tree and backyard looks great. The fact that I could see these guys were professionals who knew what they were doing and took safety seriously was comforting also. I would definitely hire them again.
Here's the flip side of the story... the person who owns the rental house next to me has a giant tree in his front yard with big dangerous limbs hanging over his house. The owner was doing some light renovation to prepare the house for new tenants. He hired someone to prune his tree and trim the big limbs over his house. When I saw how the neighbor's tree trimmers were trimming the tree, my jaw fell open. There were two guys with a hand saw and a ladder trying to trim big branches off of a 50 foot tree! No safety equipment, no mountaineering gear, no chainsaw, no team on the ground, no shredder to get rid of the fallen branches, nothing! I am guessing that since they didn't have the proper tools to do their job, they probably didn't have workmens compensation or any type of liability insurance either. Aside from the safety concerns (the guy up in the tree was barefoot, topless, and had a handsaw - no safety equipment!) he obviously didn't know how to properly trim the branches. He would saw the branch halfway and then let it break off and fall to the ground! Thank heavens those guys got through the job with no one getting hurt. The tree unfortunately looks terrible. It was a beautiful tree, hopefully it won't rot and die from being chopped to pieces.
Here's what I learned... you definitely get what you pay for. When I look at the people the owner next door hired, I am guessing he went with the cheapest estimate. Since I never see the owner around I'm also guessing he doesn't have the time or interest in checking out who he's hiring. From a business stand point this is foolish in my opinion. He didn't look at the business risks: If those guys damaged his house in the process of trimming the tree, he may have had a hard time collecting insurance since these guys weren't professionals. Looking at the tree you can tell it wasn't professionally trimmed. Also, if either of those workers got injured on the job, they could of sued the owner and put a lien on his house. Finally, if the tree dies because it was trimmed improperly, then its going to cost the owner even more to have a dead 50 foot tree removed. Of course a big dead tree can also fall down in harsh weather and damage property or pedestrians on the sidewalk, translation = possibility of a lawsuit if the tree dies and isn't removed. Hopefully none of these things will happen. Observing this situation reminded me that one always needs to do a little risk assessment in any type of business situation.
The slogan "Buyer beware" is very true. I would also add that sometimes hiring the least expensive contractor or supplier can cost you more in the long run. I hope this story reminds people to do your homework and know what you are getting into, especially in business situations.
The Money Bastard
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