Contractor Incentives For Work Done On Time

[Jonathan C.]

Wondering if rehabbers set up any sort of incentive/bonus for contractors for completing work on a certain time schedule. Or, alternatively, if people set up some sort of penalty if the contractors don't finish the work on times.

Pay for performance seems to work pretty well in the business world, and I would imagine a version of it could also work with contractors. Looking for ideas on how other people have set something like this up.

I'm thinking maybe an extra $1k (on a $40k budget) if they get the work done by a certain date, but I'm not sure that is enough/too much...

thanks for any ideas. Jon

[J Scott]

Our contractors will generally finish as quickly as possible so that they can move onto the next project we have and therefore make more money. That said, if we do well on a deal, and the contractors went over and above to make that happen, we'll often give bonuses ($500-1000) as a "thank you"...