How to compensate a construction superintendent

[Andy Chu]

We're lucky enough to start our own crews on getting a consistent job level to be able to hire our own team. The problem now is that managing these people appears to be impossible without some type of supervision. We're paying $2.00 a sq ft to install tile but when I have 3 guys at one location, they install 43 tiles or 96.75 sq ft (18x18) which is costing me close to $3.02 a sq ft (assuming 32 hours are worked ).

The efficiency factor goes way down when I don't have someone managing the site. The question is, how do you incentivize the superintendant to speed up work BUT not lose quality?

[J Scott]

I'm a big believer in aligning interests between the company and the employees. In the case of our project manager, we pay a small monthly salary, but the bulk of their income comes from profit sharing -- our project manager gets a fixed percentage of the profits from every project.

This provides incentive to the PM to ensure we stay on budget (better yet, under budget), stay on schedule, build a quality product that we can sell quickly, etc. Because he knows that the more money we make, the more money he makes.

Btw, seriously consider bringing on this person as an employee vs an independent contractor. If he's an IC, he'll be required to work for others (sharing your business practices with them, even if inadvertently), you won't have full control over his work, and you won't get the most out of him that you can. Plus, the way most people use project managers, the IRS would classify them as employees anyway, so save yourself the stress and penalties and just do it now.