Using and Managing Subcontract Private Investigators

Using Subcontract Private InvestigatorsThere will be a time in your investigative career that you will need to hire another private investigator to help you with an assignment; he or she may work along side of you or may be handling tasks on the other side of the country.  Subcontracting parts of your investigation makes sense when you do not have enough manpower to manage an investigation locally or it is not within your client’s budget for you to travel extensively during the course of your investigation.  By hiring subcontractors you can service a greater number of clients through your ability to become a “one-stop shop” and a single point of contact in getting the job done.  Regardless of the situation, maintaining a great relationship with contract investigators and other investigative vendors helps to ensure that your assignments go smoothly.

Getting through a job without a hiccup is probably not going to happen in all instances because ensuring that your subcontractors are doing their work as scheduled and making sure that they are conducting their parts of the investigation in a manner you expect them to while staying within your budget is similar to juggling a dozen revving chainsaws.

Aside from becoming comfortable through experience and practice, here are some additional tips to managing subcontractors without getting taken for a ride.

Document Everything:  First, you have to plan your investigation and identify all of the components with which you are going to need help.  Next you have to clearly identify the process of getting that part of the investigation accomplished and produce a detailed set of instructions for whoever will be handling the job defining the scope of the work to be performed.  Always agree up front what services you will and will not pay for and the terms and frequency under which the subcontractor will get paid and never sub an assignment out without an agreement in place.

I remember a time I was burned by an investigator for $125 worth of motor vehicle registration records when her job was simply to conduct surveillance on a specific residence and get me videotape documenting everyone who was coming and going during a very specific timeframe.  In her zeal to go above and beyond, she went above and beyond my budget and the scope of the assignment.  I paid her simply because I did not do a better job of defining the scope of the investigation and did not have an agreement in place outlining what I needed done and what I did not need.

I’ve included a great example of the agreement we use in the appendix of this course.

Document every communication you have with your subcontractors and vendors even if it is after the fact.  I prefer to manage and communicate via email as it leaves a paper trail but I also realize that there are times that we need to discuss issues.  In those instances, I follow up our conversation with a memorandum via email to the subcontractor summarizing key points of the discussion.

Coordination and Communication:  Part of documenting and putting into place a plan it is to make sure that every investigator clearly understands what they’re supposed to accomplish, how and when.  Then continue to correspond and coordinate with your subcontractors until the job gets done.  I cannot overstate the importance of communication and keeping a line open for the contractors to get a hold of you when necessary.

Be Flexible:  A common military expression is that the battle plan often changes as soon as you meet your adversary; the same can be said about any ongoing investigation. An investigation must remain fluid and you must keep changing your plan as new challenges and information from the field arises.  You might get information from a contractor with “boots on the ground” that gives you cause to pause.  Listen to the subcontractor and regulate your plan accordingly; they often see obstacles that you cannot since they are on the frontlines and you are busy working on something else.  It is not uncommon to find contractors who are unreasonable in their requests simply because they do not have local knowledge or present in that moment.

Be Professional and Personable: Of course, it’s always helpful to know the reputation of the investigators with whom you are working. Working with people who you’ve successfully worked with before or who have an excellent reputation is oftentimes worth the extra cost. The first time you work with a new investigator, work with him as closely as you possibly can.  If things work out well make sure to recommend him or her to others.

Most importantly, be fair and pay your subcontractors on time.  News will travel fast if you are less than professional in your business and this kind of negative word of mouth advertising is impossible to overcome.  While it is certainly OK to make money on the labor of your subcontractors be reasonable.  Subcontract investigators should offer a “subcontract” rate to other investigators but no one expects to work for slave wages either.  If I am billing $75 an hour it is perfectly reasonable to pay a subcontractor $55 to $60 an hour, but trying to make 75% to 100% markup on services is villainous and almost reeks of indentured servitude.  What if the shoe is on the other foot?  I won’t do business with people like that.  Conversely, I won’t typically do business with a private investigator who is billing $45 an hour either.

Perhaps you will become a subcontractor for another investigator who has a specific need for your services.  Remember that it goes both ways and being the type of subcontractor others will want to work with is great for business.  Respect their work, communicate clearly and often, and pay on time.  Treat others as want to be treated. And pay up. That makes a difference.