Should I Subcontract Plumbing Work or Keep Everything In-House?

As your plumbing business grows, you’ll face a common dilemma: Should you hire more in-house staff or subcontract work to other plumbers? Both options have pros and cons, and the right choice depends on job size, consistency of work, and your long-term goals.

Let’s break it down so you can make the best decision for your business. 👇

🔹 The Pros & Cons of Keeping Everything In-House

✅ Pros of In-House Plumbers

✔ Full control over quality and work standards – Your team follows your processes, ensuring consistent results.
✔ Better reputation management – Your brand is directly responsible for the work, reducing the risk of subcontractor mistakes damaging your name.
✔ More reliable workforce – You don’t have to worry about last-minute cancellations from subcontractors.
✔ Long-term cost savings – If you have enough work to keep employees busy, their hourly rate may be lower than a subcontractor’s markup.

❌ Cons of In-House Plumbers

✖ Higher fixed costs – Salaries, insurance, superannuation, vehicles, and tools all add up.
✖ Need to provide consistent work – If jobs slow down, you still have to pay staff.
✖ More admin and HR responsibilities – Payroll, training, and workers’ compensation require time and effort.
✖ Limited scalability – You can only take on as many jobs as your team can handle.

📌 Example Scenario:
A residential plumbing business with steady maintenance work (e.g., hot water replacements, leak repairs) might benefit from an in-house team since labor demand is consistent.

🔹 The Pros & Cons of Subcontracting Plumbing Work

✅ Pros of Subcontracting

✔ Scalability & flexibility – You can take on bigger jobs without hiring full-time staff.
✔ Lower overhead costs – No need to pay salaries, benefits, or invest in extra vehicles and equipment.
✔ Access to specialized skills – You can bring in experts for commercial plumbing, gas fitting, or drainage without hiring them full-time.
✔ Less responsibility for training and HR – The subcontractor is responsible for their own workers and compliance.

❌ Cons of Subcontracting

✖ Less control over quality – If a subcontractor does poor work, it reflects on your business.
✖ Risk of pricing conflicts – Subcontractors may charge high rates, cutting into your profit margins.
✖ Availability issues – A subcontractor might be busy with other jobs when you need them.
✖ Potential for client poaching – If a subcontractor builds a relationship with your client, they might try to work with them directly.

📌 Example Scenario:
A plumbing business bidding on a large commercial project might subcontract out civil stormwater works or mechanical plumbing, allowing them to win the job without hiring a full-time specialist team.

🔹 Key Factors to Consider When Deciding

Before making a decision, ask yourself these questions:

1️⃣ Do You Have Enough Work to Justify Hiring Full-Time Staff?

• If you have consistent work year-round, in-house employees may be the better option.
• If your work is seasonal or inconsistent, subcontracting helps you avoid paying wages when there’s no work.

2️⃣ Are You Taking On Large or Specialized Jobs?

• Large commercial projects often require subcontracting specialists for stormwater, gas fitting, or civil works.
• If you mostly handle residential maintenance, an in-house team may be enough.

3️⃣ Can You Maintain Quality Control With Subcontractors?

• If you subcontract, choose reliable tradespeople and set clear expectations for quality and timelines.
• Create written agreements to protect your business and clients.

4️⃣ How Important Is Brand Reputation to You?

• If you want every job done under your company’s name and standards, an in-house team is best.
• If you don’t mind subcontractors operating under their own business name, subcontracting is an option.

🔹 When to Keep Work In-House vs. When to Subcontract

🔹 Final Verdict: A Hybrid Approach May Be Best

Most plumbing businesses use a mix of in-house staff and subcontractors depending on job size and specialization.

✔ Hire in-house plumbers for regular jobs that keep your business running.
✔ Subcontract specialists for larger, less frequent, or highly technical projects.
✔ Build relationships with subcontractors you trust so you always have reliable extra hands when needed.

💡 Tip: If you subcontract, negotiate rates in advance and use a written contract to protect yourself from last-minute price hikes or job cancellations.

🏁 Final Thoughts

Both in-house staffing and subcontracting have advantages and disadvantages. The right choice depends on your business size, job types, and long-term goals.

✔ If you have consistent work → Build an in-house team.
✔ If you need flexibility and scalability → Use subcontractors.
✔ If you’re growing but unsure about hiring → Use a mix of both until you find the right balance.

👉 Need help pricing your jobs accurately so you can manage labor costs effectively? SNZ Plumbing Estimating can help with detailed, accurate estimates—get in touch today! 🚰📊