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Old 07-22-2012, 11:45 AM
Davs99z Davs99z is offline
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Location: Huntsville Al.
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Paying key Construction Labor By the Job

My company Builds Patios,Outdoor Fireplaces ,Ponds a more I have had the same Key Helper now for about 4 years it is mostly the two of us with anextra giy or two from time time I would like to pay the key guy BY THE JOB rather then hourly He is getting paid Hourly now $14 i think if i can figure out a way to determine a "By the job Rate" it will help him to be more productive and in the long run a win win for both of us however i just cant figure out a formula that seems to work for all jobs and for us both Any help on this would be great ! THANKS !
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Old 07-22-2012, 11:55 AM
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alldayrj alldayrj is online now
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Figure out how long the job should take. (ideally). Based on that see how much he would be getting paid. Tell him thats what he gets when its done or he can make 15% extra if he gets done a day early etc. I've done it before when i had to get off a job and on to the next. I figured it for 5 days and needed it done in 4. I said you would normally make 120/ day, but I'll give you 600 if we finish by friday instead of sat. We worked late and got it done. Everyones happy.
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Old 07-22-2012, 12:12 PM
Davs99z Davs99z is offline
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thanks

that is close to what i figured but i want to figure something more of a % of the labor something something that can be consistent from each job What i was thinking was if the labor on a jobs is $1000 that means at our Hrly rate it is roughly 24 hrs so if was to pay him 38% of the labor charge if he took the entire time he would make $15.80 and hour but it safe to assume he would beat that time just not sure if that is always fair
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Old 07-22-2012, 12:45 PM
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alldayrj alldayrj is online now
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I cant remember the last time a job went EXACTLY to plan. theres always something, hitting a sprinkler line, big roots, previous owner buried concrete etc that adds some fun time to a job. this is the downfall to the system. I think this idea would work better for mowers not hardscapers.
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Old 07-22-2012, 12:57 PM
Davs99z Davs99z is offline
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Thanks !

I agree!! but maybe could add a factor for that ?? I am not sure but I think there must be a way
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Old 07-22-2012, 02:48 PM
jmacd jmacd is offline
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Sounds to me that you looking to get more production from the guy by paying him some sort of incentive.

If that is the situation than I would look at paying him a small % of the net profit of each job. This way he is looking out for any and all ways to make you more profitable not just work a little harder.

Don't forget the over head of the business that is not attached to each individual job.
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