A good bonus plan rewards outcomes the company cares about.
In this article
Profit
Versus estimate.
Schedule
Milestones.
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Client
Satisfaction.
Safety
Results.
Timing
After closeout.
A closer look
Bonuses based only on profit can push PMs to fight change orders or cut corners. Balanced metrics reward healthy projects.
Where to start
Draft a simple plan with three metrics.
An example
A GC added client satisfaction to PM bonuses. Repeat work increased.
Common mistakes
Single metric, unclear math and paying too early.
What to track
Track bonus outcomes.
Questions to ask
What behaviors do we want? Is the math clear? When do we pay?
Who owns it
Executives and finance own the plan.
Run tighter jobs and win the right ones.
We help construction companies build the systems, online presence and client relationships that bring better projects.
Frequently asked questions
What metrics should PM bonuses use?
Common metrics include project profit versus estimate, schedule, safety, client satisfaction and collaboration with field teams.