Exposing the Shady Practices of Southern Elite Contracting, Inc.
As a former subcontractor for Southern Elite Contracting, Inc., I've had firsthand experience with the company's concerning business practices. After carefully reviewing their subcontractor agreement and reflecting on my time working with them, I feel compelled to share my insights and warn others about the potential pitfalls of engaging with this organization.
Unfair Contract Terms
The contract presented by Southern Elite Contracting is rife with provisions that are heavily skewed in the company's favor, often at the expense of the subcontractors. One of the most alarming aspects is the deduction clause, which allows the company to withhold up to 100% of a subcontractor's commissions to cover any advances. This creates a situation where subcontractors may not receive any payment for their work until they have cleared their debts to the company, potentially leading to severe financial hardship.
Additionally, the contract imposes a 15% franchise fee and an additional 7.5% lead fee, totaling 22.5% in charges off the top of every job. This disproportionately eats into the already limited profits available to subcontractors, making it challenging for them to maintain a sustainable and viable business.
Profit Allocation Concerns
A particularly troubling aspect of Southern Elite's business model is the allocation of profits. Although the contract suggests that subcontractors are entitled to 30-40% of the profits, the reality is that subcontractors often receive only 30% of that amount. In essence, this translates to a mere 9.3% of the total revenue generated from jobs. This significantly diminishes the potential earnings for subcontractors, raising serious questions about the fairness of the compensation structure.
Multifaceted Roles Without Fair Compensation
When hired on board, subcontractors are often brought in as sales representatives. However, the job expectations are multifaceted; they are expected to assume both sales and project management roles without appropriate compensation for the additional responsibilities. This dual burden can lead to burnout and frustration, as subcontractors are forced to juggle multiple roles while only being compensated for one position. This lack of clarity and fairness in job expectations further contributes to a toxic work environment.
The Use of Religion as a Trust-Building Tool
One of the most disturbing practices I observed during my time with Southern Elite is the owner’s use of religion to garner trust from employees and contractors. While faith can be a source of strength for many, it was exploited in this context to create an illusion of sincerity and integrity. The intention behind this manipulation appears to be deceptive, misleading subcontractors into believing that the company operates with genuine values when, in reality, the business practices are anything but ethical.
Liability and Risk
By signing the contract, subcontractors are required to waive liability for any accidents or negligence that may occur on the job site. This is a common practice in the construction industry, but it can be particularly problematic if the company's own practices contribute to unsafe working conditions. Subcontractors are essentially putting their financial and legal well-being at risk by accepting this agreement.
Toxic Work Environment
The contract also includes provisions that suggest a lack of trust in subcontractors' abilities to manage their projects effectively. The requirement for detailed job notes and the threat of reassignment for insufficient updates can create a hostile and micromanaged work environment, further eroding the subcontractors' sense of autonomy and professionalism.
Conclusion
Based on my review of the contract and my personal experiences, I cannot in good conscience recommend Southern Elite Contracting, Inc. to anyone considering working with them as a subcontractor. The company's practices appear to be heavily tilted in their favor, with little regard for the well-being and financial security of the individuals who are essential to the success of their operations.
I urge anyone considering a partnership with Southern Elite Contracting to exercise caution and thoroughly review the contract terms before signing. It is crucial to ensure that the agreement aligns with industry standards and provides a fair and equitable arrangement for all parties involved.
If you have had a similar experience or feel that you've been taken advantage of by Southern Elite Contracting, I encourage you to share your story. Your insights can help others make informed decisions and raise awareness about the company's practices.
Call for Feedback
If you are a former subcontractor or employee of Southern Elite Contracting, please fill out the contact form below to share your experiences and concerns. Your feedback is invaluable in shedding light on the realities of working with this company.
