We asked our RenoFocus contractors how much they paid their project managers. Here’s one Toronto contractor’s response

We sent an email to our contractor friends to find out how much they pay their Project Managers. We’ll write a full report soon, but we thought this response warranted its own blog. This contractor has clearly thought this out!

Hi Rob:

Our model is that our project managers (actual name we use is “project developer”(PD) ) are actually part of the design development team and as such are responsible for estimating the project as it develops to a final construction ready project. They download the production team on the final construction version and then manage the project through construction through one of our field lead hands whom are assigned to the job & on site all day with tools on. The Project Developer might be on site one or two times a week unless more frequent visits necessary at certain juncture.

Our standard base salary is between $55-60k and goes against a base $750 k revenue , beyond which they receive commission based on finished GP. Commission is sliding scale starting at three per cent at 32 per cent GP and rises to eight per cent at 42 per cent GP with onus on them to help maintain respectable GP with skin in game.

Average performer can do $1.2-1.5 million at 35 per cent GP and can make $80-100k, with a high performer doing $1.5-2.5 million and pulling as much as $150k -180k. Because they play a role in sales as part of the design development squad they help sell the work. We doll out commission based on who sold initial concept  design agreement, construction design agreement, actual contract, who did the estimating, and finally who did the project management. It’s a flexible way to let people participate where they shine brightest and still be rewarded, regardless whether they were all in, part in, or shared the load. If the sales guys and the PD shared the load on a specific component of the design development then they split that piece 50/50. We’ve implemented this system over the last six years with very little friction or arguments, the final GP is agreed upon 45 days after  contract is closed and reconciled. We track all this on our WIP (Work in Progress Report).

Hope that helps , happy to add if there’s questions .

Keep doing what you do Rob, its appreciated !!