Irrigation Division Foremans Wage.

Discussion in 'Irrigation' started by boohoo, Dec 28, 2002.

  1. boohoo

    boohoo Banned
    from USA
    Posts: 77

    Plan on having to employ a foreman to run an irrigation division in 2003. Please give me some ideas as to what wages you guys are or would pay a foreman. I was thinking around $30000 to $35000 Salary plus say 10% of net profit @ years end for that division.
     
  2. devildog

    devildog LawnSite Senior Member
    from sc
    Posts: 270

    Does that number exceed 40% of the gross revenue for the Division? How many management hours will that free up for a typical week? Do you have info on the prevailing wages for a person of that ability, in your location? Presume this position be a "working foreman". Have you given thought to a mix of profit AND bringing new work to the Company? With Regards... devildog
     
  3. I operate a fishing pond in the summer in Colorado and at the same time operate my 3 tech, 2 contracting crew irrigation company in Arizona.......my techs make 35k per year...in fact one of them makes 40k.

    Nobody operates that division.

    My point is that maybe you could operate the division yourself or have a dispatch/office manager type to operate it. If you set up the systems properly it should be a piece of cake unless we are talking about 1million gross or more. Then it might be tougher.

    Also...it sounds as if you are just starting this division? As an add on perhaps? Maybe you don't know much about it so you thought you'd hire someone who does and allow them to run it for you? If that is the case, 35k won't cut it. Even 10% of the profit won't help. Just my opinion.

    Harold?
     
  4. HBFOXJr

    HBFOXJr LawnSite Bronze Member
    Posts: 1,712

    Define "run " in detail.
     
  5. boohoo

    boohoo Banned
    from USA
    Posts: 77

    I do limited irrigation installs as I find it easier to sub it out or sub part of it out ie pipe pulling but am thinking if the numbers work having a full time foreman & laborer do nothing but Irrigation installs on a full-time basis. No different to install, lawncare & maintenance divisions but obviously need an experienced technical hands on type person to run division. This would be in a 40 week market. Company would do all selling, marketing, billing & some design & the division leader would just have to design & install. Assuming 2 guys could gross possibly $200000 a yr with cost of materials around 18-20%, although with the very competitive marketplace that might be more around 25%. re: Foreman I would appeal more to the family guy who wants a steady income, full benefits, company truck, profit percentage & 6-8 weeks paid holiday per year so $35000 a yr. might be slightly low. Will do it sooner than later but wont happen without the right staff. Just looking for some feedback from you established irrigation guys.
     
  6. devildog

    devildog LawnSite Senior Member
    from sc
    Posts: 270

    It would appear you have done enough homework and have the requisite installs experience needed to get started. From the info posted the only other considerations will be start-up costs and timing. Without the right foreman, I would wait, with regards... devildog
     
  7. HBFOXJr

    HBFOXJr LawnSite Bronze Member
    Posts: 1,712

    I don't know hwere you are in the USA but the goal is problamatic and not as easy as you make it look.

    On installs, materials may be higher than even 25% and may be 40-50% of some of your nasty competitions price if you have much in your area. You'll have to deal with that.

    Many jobs in my area of "routine residential" may be 6 man days worth of work more or less. Of course the variations are huge but it is a number. You'll need 1.4 of these jobs per week to keep them busy. How many leads will that take? What will it cost to advertise? Are you going to sell for free? If you want the forman to do design, how and when is he going to do that? Who prepares the bid? Are you and the forman going to visit the site? What about equipment costs? Purchased new your looking at 40-50K for a truck and puller.

    $1,000 a day is OK for 2 men if it is not high priced materials in out install market. Many get less. Compertitive pressures are horrible because the clients shop by price and how quick they can get it done most of the time. There is only a small percentage in the upper part of the market that give a hoot what they buy and here, there are plenty of us do take care of them.

    200,000 sales
    70,000 materials
    35,000 forman
    8,750 taxes and insurance
    7,000 forman health insurance
    8,000 equipment payments
    19,800 helper
    4,950 taxes and insurance on helper
    24,000 OH

    Leaving you with $22,500 maybe??? It can be done, but I just want to point out where it's going to go and that that $200K is not so big. But if you can make another $20/yr with minimal effort on your part it helps.
     
  8. boohoo

    boohoo Banned
    from USA
    Posts: 77

    Thanks for your help......just ballparking numbers initially before coming up with a business plan for the division. I also have the option of having the system designed, a material take off and the pipe pulled for under $400. Will factor in probably leasing a pipe puller the more I think about it. I would also factor in winterization & limited service calls. Big issue for myself though is having an install timetable for the month that doesnt always work out with the irrigation sub who may be busy up the you know what. Alleviating that problem would help. I factor the irrigation install price into a total price for an install so as a guide around $400 a zone. I know this is not the preferred method but its a good ballpark measure. Generally contractors around here are about $350-400/zone .
     
  9. turfman59

    turfman59 LawnSite Senior Member
    Posts: 801

    I would not carry the 350 to 400 per zone very far into your business plan or I ll have you sub'd out to do some sites I have lined up. Can you say Commercial? Or spray only installs.
     
  10. boohoo

    boohoo Banned
    from USA
    Posts: 77

    I should have been more specific. Nearly all installs are 6-10 zones. ie $2400-$4000 Trust me I have researched the market and have used many contractors and all of them are around this price. Wish the margins were better but so many guys are chasing so few dollars. What can you do.
     

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