Construction Piece Rates: Options for Cost Control

Publisher Marketing: Construction contractors and subs want to know about piece rates, and whether they apply to their business. Construction piece rates do have benefits; they motivate employees, lead to faster project completion and better cash flow, result in actual costs closer to estimates. Piece rates also have drawbacks, not only the set-up expense but also the field reporting and bookkeeping necessary to calculate payrolls which conform to minimum wage, overtime and tax laws. One size does not fit all when it comes to expectations and pay plans. As a result, this book doesn't try to sell you on piece rates, but explains advantages, operating issues, costs, and practical considerations so you can determine the right course for your operation, culture, objectives. Further, the book suggests a wide variety of useful actions to reduce costs of operations, You will like this portion a lot, whether or not you opt for piecerates. There is perhaps no single right answer (other than IRS rules and regulations), where one viewpoint is correct and another wrong. The purpose of this book is not to set in concrete any one idea or plan, but to note the variations. It describes construction piece rate plans, issues and influences. It defines objective and subjective reasoning that applies to overall cost / benefit analysis. It quantifies payback scenarios, which you can use to anticipate benefits and downsides of various strategies in your unique circumstances and objectives. Chapters detail other practical actions to cut out waste from the construction process, to measure labor, to motivate employees, and to achieve many of the benefits but avoid the downsides of piece rates. Some practices are prerequisites to a reliable piecerate process in the first place, and will smooth the way for piecerates if you choose. If your decision is to move to a motivational payment system, chapters describe specific plans of action to create and administer good rates, including references to disciplines beyond the author's scope, such as legal and bookkeeping.