So here we are.  Another day, another lesson learned the hard way.

I’ve always prided myself on being able to sniff out the bad apples, but sometimes even the sharpest nose misses a whiff. Trust is a funny thing; fragile, easily given, and often dangerously misplaced. And when it’s broken, the fallout can be catastrophic, especially when it involves your livelihood.

Initially, the contractor seemed reliable. I gave them a steady stream of work, allowed them to charge premium rates, and let them dictate their availability. Naturally, they competed and serviced other customers in the industry. But then the cracks started to show: the quality of work began to slip, they became overly reliant on my business, and a sense of entitlement started to creep in. Before I knew it, they had twisted the situation to claim a backpay of lavish employee-status benefits, all the while continuing to run their own business.

How did I let this happen? Simple. We were friends before we were colleagues, and the harsh reality is that business and friendship don’t always mix. My own complacency played a big role in this mess. I trusted too easily, didn’t set clear expectations, and ignored the warning signs as they appeared.

In this blog, I’ll share my advice on hiring subcontract installers, drawing from my own experience, so you can know exactly who you’re dealing with before the work begins.

The Importance of Clear Agreements

When was the last time you had your contractor fill out a questionnaire or sign an agreement? If you’re like most, probably never. After all, why bother? Isn’t their word enough? Obviously not. Too often, contractors walk away with a pocket full of cash and unearned confidence, leaving a mess in their wake.

One of the biggest mistakes I made was not formalising my relationships from the outset. I worried that a written agreement might scare off new contractors. But the truth is, if they’re not willing to enter into a formal arrangement, why should I trust them with my business?

Don’t rely on good intentions; put everything in writing. Issue purchase orders, specify the nature of the work, set deadlines, outline compensation, and clearly define worker classification.  And for heaven’s sake, make them sign it.  After all, if their word was really that good, it wouldn’t hurt to back it up with a signature, right?

The Dangers of Mixing Business with Friendship

Remember when old mate offered to help you out on weekends? Seemed harmless, and you were always happy to talk shop afterward over a beer. But while you were casually spilling your hard-earned operational know-how, old mate was quietly building a competing business, poised to poach your core customers.

This is just one example of how mixing business with friendship can backfire.  The reality is, when you prioritise your friendship, you tend to overlook red flags that you wouldn’t with a regular contractor.

My advice? Treat your friends like future competitors. It may sound harsh, but in business, maintaining a bit of distance and professionalism commands more respect.  You can still be mates, but it’s crucial to enforce boundaries and set clear expectations.  A true friend will respect that, and if they don’t, maybe they weren’t such a true friend after all.

The Consequences of Misclassification

Imagine this: you’ve hired a contractor who sets their own rates, works on their own schedule, brings all their own tools, and even markets their services to other clients. On paper, they’re the perfect independent contractor—self-sufficient, ambitious, and clearly running their own show.

But here’s where things get tricky. When a contractor like this starts taking on more work from you, exclusively, the line between contractor and employee can start to blur. At what point does their independence start to resemble something closer to employment?

The consequences of getting it wrong can be severe.  If a contractor is reclassified as an employee, their benefits might be scaled according to the high fees they charged as a contractor, leading to a financial impact that is not only unexpected but also profoundly unfair.  That’s why it’s crucial to regularly assess your contractor relationships, ensuring that the terms are clear, fair, and legally compliant.

Conclusion

In business, trust is a precious commodity, and we often part with it at a very low price Some individuals, under the guise of friendship, will exploit this trust—seeking favours, extracting insights, and ultimately using them against you, even if it means tarnishing their own reputations in the process.

Fortunately, the market has a way of weeding out these bad actors, much like white blood cells targeting an infection. In time, the unscrupulous find themselves isolated and without the trust they once exploited.  To act this way and know you’re wrong is bad enough, but to do it all and think you’re right?  That’s a menace to any business that crosses their path.

Yet, even these difficult experiences carry lessons. I’ve learned the importance of being more discerning and more protective of what I’ve built. Trust remains crucial, but it must be earned and carefully guarded. After all, he who learns must suffer, and we are only healed of a suffering by experiencing it to the full.

Free Download for the Contractor Agreement Form

Click this link to download our Contractor Agreement & Questionnaire for free. This is the very form I use personally to identify contractors, understand their intentions, and set clear expectations from the start. Protect your business by ensuring everything is laid out from day one.