Site Incentive Program

Dear All,

Right now i'm preparing a site incentive program ti change company strategy from Over time to incentive system 

Knowing that our site are all steel construction sites . So, if any body has experience in this point ==> please help

E
Essam Yassin 👤 Member for 12 years 5 months

Thanks for all participants ,

The idea behind is to save money paid for over time and to get more effective way to accelerate site work with the same limited resources 

  • For quality point ==> Sure as giving money for good job , Penalty shall apply for repeated mistakes or rework due to acceleration
  • Incentive only for critical or near to critical activities (But now we shall pay for recovery)
  • Clearly my question is "What shall be the thumb rule here - region rates can be considered or i have to go into deep calculations ?"
E
Essam Yassin 👤 Member for 12 years 5 months

Thanks for all participants ,

The idea behind is to save money paid for over time and to get more effective way to accelerate site work with the same limited resources 

  • For quality point ==> Sure as giving money for good job , Penalty shall apply for repeated mistakes or rework due to acceleration
  • Incentive only for critical or near to critical activities (But now we shall pay for recovery)
  • Clearly my question is "What shall be the thumb rule here - region rates can be considered or i have to go into deep calculations ?"
R
Rafael Davila 👤 Member for 22 years 3 months

I suppose it is a no-brainer no quota have been satisfied if quality standards are not met. Any quantity that does not meets quality standards is rejected and not paid until repaired at the expense of those who failed to deliver, this is common field procedures, and enforced from the very first time it happens. If your regular supervisor is incapable of supervising for quality fire him, you have a bigger problem than you thought. 

S
Stephen Devaux 👤 Member for 21 years 2 months

Mike Testro wrote:

"...(Y)ou will need strong supervision which has to be paid a good rate outside the tonnage money."

Put that in flashing neon lights. Any time that you add incentives for speed, you risk sacrificing quality unless you invest some of the value and time generated back into supervision and quality checks. Just like in T20 cricket -- faster run rate means more risk and more wickets.

Of course, if you've generated enough time savings, then you have the time to reinvest in supervision and quality checks.

One thing I would add is to ensure that the incentives you're paying for faster performance is on the critical path work and is based in data about the work's drag cost. There is little point in speeding up work to just increase a noncritical path's float or to pay more in speed incentives than the value of the time saved.

Fraternally in project management,

Steve the Bajan

M
Mike Testro 👤 Member for 20 years 5 months

Hi Essam

You can arrange to pay your steel erectors a rate for every ton of steel fixed - set this at something like 70% of your contract fixing rate.

Tell them in advance what the target total is.

During the job they will be paid the normal hourly rate and any extra due to the tonnage rate will be paid at the end of the job.

This will ensure that the crew stay to the end and are not paid the extra until all the time consuming fiddly bits are finished.

Time taken for rectifying faulty workmanship is done free of charge by the wrongdoers.

After a while the system will become self policing but you will need strong supervision which has to be paid a good rate outside the tonnage money.

Best regards

Mike Testro

R
Rafael Davila 👤 Member for 22 years 3 months

You can try:

  1. Piece work (or piecework) is any type of employment in which a worker is paid a fixed piece rate for each unit produced or action performed[1] regardless of time. Brick installation can be one such activity. 
  2. Daily work task in which the work day is paid based on a defined daily volume of work, for example at home it is not uncommon to pay cement plaster by what we call in Spanish a "tarea", after a cement plasterer and his assistant does 50 SM he have finished his day and can leave with a full day's pay, usually will be in less hours than on a regular day but at a high production rate.
H
Hossein lak 👤 Member for 18 years 4 months

Please Tell a little more about your site,sth like number of personels,working groups,site location and working time of your site.In addition if you have other useful info please tell about that. 

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