Browse Forums Building A New House 1 Jun 19, 2009 5:32 am I'm about to start building with a project builder and am a little paranoid about the end result. I am seriously considering communicating my intent of offering a bonus to the Customer Rep and Site Manager for delivering my home on time and to accepteable quality standards. Payments made at milestones. I'm guessing that money will motivate them and also will indicate how serious I am about receiving a good quality home. We are not talking about a lot, probably in the vicinity of 5k-10k and what they receive will depend on how good a job they do. Any thoughts about motivating the builders in this way. Has anyone else done the same Re: Paying a 'bonus" to the CS and Builder 2Jun 19, 2009 6:02 am thats one of the most ridiculous things ive ever heard, youre contracting them to do a major job for you, they shouldnt need to be motivated by extra money, if this kind of thing took off can you imagine what it would do to the industry. im a truck driver, maybe my boss should give me an extra 50 bucks for every load i deliver on time and in perfect condition? you must have more money than sense Re: Paying a 'bonus" to the CS and Builder 3Jun 19, 2009 6:39 am I would only consider doing it the other way around. Ask for the last 10% of the contract price to be the flexible 'bonus' that they have to earn. Do a good job, and on time, like they are supposed to, and they get paid the full amount. Isn't that they whole basis of the building contract? I'd only consider thanking them in liquid currency if something arose and they make an effort to sort out problems quickly & fairly. Keep them on side, but not by offering $$. Re: Paying a 'bonus" to the CS and Builder 4Jun 19, 2009 6:41 am Beattun....I suggest you take a look on this forum at the number of people unhappy with their build. I work for a large company, they motivate their employees with bonuses, just like most large companies do. The bonuses are aligned to performance. What is the difference between this form of bonus. Actually, come to think of it there are many commercial contracts underpinned by a bonus system. commodorenut...this payment is not to the project builder. The payment is to the CS and the tradie on site managing the build. In terms of thanking them with liquid after the problem arose, this is exactly what I am trying to avoid....fighting fires. I'll lay the cards on the table upfront. Re: Paying a 'bonus" to the CS and Builder 5Jun 19, 2009 6:49 am i feel that performance based bonuses are fine if the employee performs above their obligations to the benefit of the company, but maybe im old school here but i think someone should do an honest days work for the wages they agreed to work for, translate that to a builder i feel if the builder agrees to build your house in xx number of weeks for $xxx,xxx then they should do exactly that without further incentive. you can be sure theres enough markup in the overall price to ensure they make a good profit, otherwise they shouldnt be in business. and another thing, corporate bonuses have contributed to the absolute shambles the global economy is in now, but thats not really relevant for this topic. Re: Paying a 'bonus" to the CS and Tradie 6Jun 19, 2009 6:53 am don't disagree with you BUT you are talking perfect world in the building industry and we have very little leverage over builders. This is clear. In practical terms what recourse do you have if they don't build your home on time and to your quality expectations even if you paid the money. About as much recourse and sleepless nights as lianaduric has with her prestige build which I am sure she paid a lot of money for. http://lianaduric.blogspot.com/2009_04_01_archive.html Call me selfish, but I am out for myself to make sure this doesn't happen to me. There is no gaurantee that it won't, but they will get nothing if that is the case. With the cookie cutter approach I am just another number. Remember this money does not go to the owner of the project builder, it goes to the guy getting ripped off by the project builder and the CS who doesn't earn much at all. the margins and profits you talk about don't end up in the hands of the CS and tradesman. Re: Paying a 'bonus" to the CS and Builder 7Jun 19, 2009 8:16 am rmargoss, you make a very good point. You give a waiter a tip when you first order and you get good service for the rest of the night. Another approach could be (what I have thought about if I ever get to build my house) is to send chocs, flowers, or pamper pack to CS thanking them for their service so far. For SS give them a gift that will make them feel that they know you a bit more on a personal level. Have a beer with them after the first day (do not buy them a case as this will suggest that its okay to drink a lot the night before work). When they lay the first brick make it a special moment. Bring breakfast/lunch for everyone and celebrate. If I was the SS and I could see how much enjoyment my work brought the home buyers and they included me. I would want to do a good job for them. ... But remember, some people aren't perfect and do make mistakes and others just don't give a rats... Villina with Trend facade Sydney Re: Paying a 'bonus" to the CS and Builder 9Jun 19, 2009 8:30 am You are talking about giveing tradies and on site supervisors cash bonuses out of your own money - this is VERY different to companies offering employees legitimate performance bonuses - DH gets them from OneSteel, pays tax on them, its all above board - but what you are suggesting could be construed as bribery and is certainly black market cash money they would not be paying tax on ie its actually illegal - they are probably not allowed to take money directly from customers anyway due to potential allegations of above, I know I am forbidden in my job to take any financial or other gifts of value from clients, although they can make a financial donation to the organisation if they wish - it is a non profit organisation and would be a legitimate tax deductible donation - yes, give personal relatively small gifts like beer, choccies,flowers even small gift vouchers, as well as personal thanks, but dont get carried away and go any further,I know you dont mean it but its the thin edge of corruption, as Ari says, leaves company open to all sorts of allegations. Re: Paying a 'bonus" to the CS and Builder 10Jun 19, 2009 8:58 am talk about setting a crazy precedent, if this catches on then all SS will start expecting to get a bonus every time they build a home and what happens if someone does not want to pay the bonus , he gets a crapy house from a disinterested SS. maybe you should think about this before you do it , why don't you save your money for some upgrades or something , and let the builder make you a good house (which is what you are paying them for )without expecting to get a bonus for doing it. Re: Paying a 'bonus" to the CS and Tradie 11Jun 19, 2009 9:02 am rmargoss In practical terms what recourse do you have if they don't build your home on time and to your quality expectations even if you paid the money. If the builder is late, liquidated damages would apply (make sure yours are meaningful). If the quality is very poor, then it will be fixed (willingly or unwillingly), if the quality is poor, but meets standards, they're going to get a bad report from you to family, friends and acquaintances. If the quality is good, they get good recommendations. Builders like happy customers and they liek hapy customers to talk to other people and potential customers. Having said this, providing food or other things to make the workers life more comfortable I think is a great idea. Do it from the start. Demolition August 2009, Construction Started September 2009, Completed December 2010 Re: Paying a 'bonus" to the CS and Builder 13Jun 19, 2009 10:40 am This is an interesting one. I understand the intent of the OP.... but as others said it could get very, very messy. Like Casa, I'm going to be taking the approach of looking after my tradies while they are onsite. If I'm going up there, a couple of fresh coffees and a couple of pies can't hurt. Also, if there are tradies that keep getting called back through no fault of their own to repair their work that has then been subsequently damaged, I'll be extra appreciative. And if when our build is finished I feel that my CSC and SS have done a wonderful job I will most certainly being showing my gratitude. But I think I will be using the model of tipping my waiter/waitress. They are getting paid for the job they are doing for me.... if I feel the work they have done has enhanced my experience and made it memorable and enjoyable, they will recieve a bit extra. But I won't be offering a monetry incentive to do their job from the start. I leave you to fend for yourself, figure things out yourself. Terrence Malick Re: Paying a 'bonus" to the CS and Builder 14Jun 19, 2009 10:59 am I get what your intentions are but people should not be getting rewarded for doing their job! If they do a great job and have done something extra special then they should be acknowledged and maybe get something but I would not be offering cash as I agree with Helyn, it's bordering illegal and it's just not something I would do anyway. Offer a thankyou in the form of a present (alcohol, food, etc) for above and beyond work, but that's it - it is their job and they should be doing it properly - their reward is their paycheck 'A bottle of wine contains more philosophy than all the books in the world.' Louis Pasteur Vegie garden: viewtopic.php?f=19&t=27637&start=0 My Backyard Adventure Re: Paying a 'bonus" to the CS and Builder 15Jun 19, 2009 12:25 pm I gave the concreters a couple of cold 6 packs for working on a Sunday in boiling hot temperatures, just to get the work done on time for slab pour. We were very impressed they worked on Sunday, and we showed them our appreciation in the form of beer! Both my CSA and SS have been wonderful to us throughout the build (so far...), and I plan on showing our appreciation for their excellent and professional work by the form of a SMALL gift. Nothing expensive, and most likely flowers for my CSA and alcohol for my SS. It's just to say thanks for working so well on our build and making it as smooth as possible. Even though it has been the most stressful thing we have ever done, I cannot fault the work of my CSA and SS who were always willing to talk to me and answer any questions I have had. They have never brushed me off, but given me all the time I needed with questions. To tell you the truth, I feel the same way about our Sales Consultant and Financial Advisor at the Display home office too. We are currently at 72% complete, and it has only taken 63 working days, and no rain/weather delays. Have to be happy with that! I am having a site meeting and flooring measure next Friday, which is likely to take roughly an hour. For this meeting I plan on bringing morning tea for them! Nothing fancy, just something from Bakers delight I would NEVER consider giving them a cash bonus as an incentive to get the work done quicker etc. For me, that's just wrong. Henley - Wilshire Mk 3 ... I love my house!! Site start: 4th Feb 09 Handover: 10th Sep 09 Blog: http://stormygirlscastle.blogspot.com/ Build Thread: viewtopic.php?t=7166 Re: Paying a 'bonus" to the CS and Builder 16Jun 19, 2009 2:47 pm rmargoss, I'm leaning towards your camp a bit here. But it gets a bit tricky. I can't imagine any SS who would be against it but once it is offered there is a chance that it may be expected regardless. If the job isn't as you would like early in the piece and you don't pay where do you go from there? Will the SS try harder or will he say stuff this bloke? It could backfire a bit. In the early stages if you go in and strike up a rapport and hand over a thousand or so and say "look I want a good job and everything to run smoothly, can you keep an eye on the details for me. Look after the boys and buy 'em a drink." Then just cross your fingers and hope he comes through. I don't think this will have a negative effect for you. As many have said, they wouldn't have a bar of this, so I can't see this catching on and becoming the norm and expected. As you note, so many people have so many problems building their house. You want to do everything you can to make it go well. Helyn, we can't take responsibility for how someone handles their tax affairs. If he doesn't declare it, then that is his business. When I go to a restaurant and leave a tip I don't loose any sleep thinking whether the waitress will declare it or not. Re: Paying a 'bonus" to the CS and Builder 17Jun 19, 2009 3:44 pm Quote: Helyn, we can't take responsibility for how someone handles their tax affairs. If he doesn't declare it, then that is his business. When I go to a restaurant and leave a tip I don't loose any sleep thinking whether the waitress will declare it or not. Yes, I realise that and I have been 'guilty' on many occasions of paying tradespeople a cheaper cash price, knowing full well thats so they dont pay tax on it and I dont pay GST - but thats for a direct deal between a tradie and myself, not the same as offering money when they are employed by some-one else, just to do the job they are already employed to do. I would be very surprised if they are not breaking company policy if they accept 'bribes' like this Re: Paying a 'bonus" to the CS and Builder 19Jun 19, 2009 3:55 pm What happens if the site supervisor leaves? We are on to our 3rd supervisor. Personally, I do not agree with what is being suggested. Smalls gifts are ok, but large cash sums just doesn't sit right with me. Re: Paying a 'bonus" to the CS and Builder 20Jun 19, 2009 6:26 pm Beebob gets it gifts, cash, beer, gift vouchers...it's all the same. It motivates people to help you. It brings them to your side. you are no longer a number. as has been mentioned i have no control over someone not declaring income in my younger days i was a waiter. this guy came in with his wife and ate a $90 meal. At the end of the meal he left a $500 tip. was this a bribe? do you think all the waiters wanted to serve him the next time he came in? you betcha!! did he leave a tip the next time he came? sure did, but not as large as the first one. in the corporate world gifts are treated the same as cash, so saying this is a bribe is a ridiculous word to use. you don't get it that they get nothing if they fail to do a good job. I do agree though that gifts can be used just as effectively, it doesn't need to be cash Hi Mofflepop, I would recommend finding a building designer to prepare plans, they should design to your specified budget. The benefit is you can tender the project out… 9 20355 The HIA contract, in the term & conditions section states that "Commencment" is deemed when the drainage is started or the piers are dug or the slab is formed up (incase… 2 6150 |