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Question
We are a commercial outdoor shade structure company and we want to put the team on a bonus plan. Team members include Filed Supervisors, Installers, Sales, Office Manager and Designers.
Do you have any input on how to develop incentive plans that would reduce field team from "milking the clock" and pay commission to sales & designers?
develop a spread sheet of actual cost for each person involved for a typical installation and all material costs. then develop a selling price, a net cost line, a gross and net profit line, etc. then work up a percentage that each person can earn based on certain factors ie: completed under time, completed right the first time, no call back, etc. and reward accordingly.
this is just an example, you know your business better thatn I
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Answers by Expert:
Dominic J. Maltese, Jr.
Expertise
Construction industry related questions. Issues on construction, careers in construction, marketing construction, starting a construction company, cost estimating. These are a few examples.
Experience
Twenty seven years as a general contractor (15 as a construction manager and design-builder).
Organizations
Associated General Contractors of America (AGC) - Detroit Chapter (President in 1999), American Society of Professional Estimators - Detroit Chapter (President in 1994-95), Construction Association of Michigan, National Home Builders Association.
Publications
Estimator - the magazine for American Society of Profession Estimators, also, the Detroit Chapter of AGC magazine.
Education/Credentials
Associate of Science in Construction Technology, Instructor for STP classes (Superintendents Training) for AGC, lecturer at University of Detroit School of Architecture on Cost Estimating.
Awards and Honors
1998 Franklin award for one of Michigan's best run family businesses, Yearly Safety awards from AGC, Remodeling Magazine 2001 Big 50 Remodelers of the year.
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