Question by kizito2001: How should i pay a project manager for property development?
I am about to hire a project manager (foreman) who will be responsible for day to day activities in a real estate project. The project involves converting a multi unit to condo with parking lot. The soon to be foreman is currently a contractor but i know he has the raw skill to manage a project. I am just not sure how to pay him. Per hour? Per week, per month. Or agreed upon fee for the duration of the project?
Answer by Bernie’s Mom
In my experience, They are to be paid by an agreed upon amount bi-monthly. Then a lump sum bonus when project is complete (i.e. an estimated 6 month project, salary not to exceed $ 60,000 @$ 5000 2 times per month) Upon project completion, 15% bonus if completed early or 5% within one week of projected finish or no bonus if completed more than “X” number of days past estimated completion date.) This will give you both a good idea the maximum amount paid out for budgeting purposes.
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