Paying by piecework
Posted: Sun May 21, 2017 11:21 pm
We pay our fabricators a standard rate per SF of fabrication based on edge, e.g. $X for standard edge, $X+2 for an upraded edge, $X+y for a double upgraded edge, $x+y for mitered...
This was all established a while before I joined the company, but I'm stumped as to why it was set up the way it is. This is the reason: Let's say we have a kitchen that is perimeter only with a full 18" splash, 60sf total, ogee step ogee edge. We have another job that is NO backsplash, giant island, 60 sf. These two jobs would be paid the exact same total $ amount. It seems to be the second kitchen would be significantly more difficult and time-consuming than the first, but our guys are getting paid the same thing!
I am concerned that we are at times underpaying or overpaying our guys, and also losing out on jobs because we are charging so much more than other companies on some bids.
I thought a relatively simple solution would be to pay a flat rate for SF of fabrication, say $xx, and then add to that for each LINEAR foot of edge. Everyone in my office thinks I'm nuts for even suggesting this, and it has been universally shot down.
Would anyone be willing to share how they calculate piecework payment? Thank you!
This was all established a while before I joined the company, but I'm stumped as to why it was set up the way it is. This is the reason: Let's say we have a kitchen that is perimeter only with a full 18" splash, 60sf total, ogee step ogee edge. We have another job that is NO backsplash, giant island, 60 sf. These two jobs would be paid the exact same total $ amount. It seems to be the second kitchen would be significantly more difficult and time-consuming than the first, but our guys are getting paid the same thing!
I am concerned that we are at times underpaying or overpaying our guys, and also losing out on jobs because we are charging so much more than other companies on some bids.
I thought a relatively simple solution would be to pay a flat rate for SF of fabrication, say $xx, and then add to that for each LINEAR foot of edge. Everyone in my office thinks I'm nuts for even suggesting this, and it has been universally shot down.
Would anyone be willing to share how they calculate piecework payment? Thank you!