I’ve been staying in a motel in Utah, USA, for 5 days. A 5-story building is going up across the parking lot from me. Condominiums. I can tell there’s a lot of workers inside—lots of saws and nail guns, lots of yelling and some singing. There’s also a crane in use, lifting material to the upper floors. One day, I went to lunch, and came back to find about 20 window openings had been filled with windows, in about an hour. It’s impressive.
So how do these workers get paid? Salary, hourly? Are there people who do just window installations? If so, are they paid by the # of windows installed? Do any of them get health insurance? How is poor workmanship dealt with? How about workers who slack off a lot?
Manual labor is paid by the hour. Yes, they get health insurance unless they’re working under the table, which happens in construction somewhat frequently. Generally things like windows, plumbing, electrical, roofing, siding, insulation, HVAC, etc will all be subcontracted out to specialized firms who do that work.
Poor workmanship and slacking is dealt with exactly the same way as any other business: shape up or find another job.
Job assignment will vary based in part on a union vs non-union job. Unions have clearly defined areas of responsibility, and it’s a Big Deal when one group tackles a job that’s under the auspices of another. Non-union jobs are much more flexible that way. And that has bearing on the window question. I’m not expert on which unions do what, but in a union job the windows will be under a certain group (my guess, carpenters, but don’t hold me to that). There can also be companies that specialize in a job, so Dons Commercial Windows may do just that, but some other company could work more generally.
Finally to slacking off, it also depends on the company and the union (if applicable). Some companies demand higher performance than others, and are known for their quality/work ethic (or not). Same for unions/locals. I know of some which are very proud to be meritocracies (shitty workers laid off first, last to find work) and some that are more seniority based. We could argue pros and cons, but the meritocracy locals I know are very proud of it.
Not a union or construction worker, but I am related to a great many.
Building companies that build 5-story buildings are generally paid progress payments up to something like 90% on completeion. They don’t get paid until they complete. The other 10% is supposed to cover work that hasn’t been done satisfactorly. and of course you can sue if the building is very late or very poorly built.
Subcontractors are also paid on satisfactory completion, and with progress payments. Until work is satisfactoryly done, they don’t get paid. (material costs may be paid at startup of as progress payments or billed).
That means that there is somebody stuck in the middle, who’s job it is to say if the work has been satsifactorly completed, so that the subcontractor gets paid by the company, and the company gets paid by the client. And it also means that if you are a construction worker, your company, the subcontractor, doesn’t get paid until your work is accepted. If you aren’t working, your boss is on your tail.
In a union job, if it’s raining, you aren’t working, and you can laugh at him. But I guess that even in union jobs most people understand that ultimately if buildings aren’t built, there won’t be any more jobs building buildings.
I am currently working as a kind of specialized construction worker, Subcontracting from a larger outfit. In my case I install the data networks for new “smart homes” so, some drilling, some cabling, terminate lines, install wireless access points, smart thermostats, video doorbells, and the network switches that link them all up.
I just do the model homes, and sales offices, there is another outfit that does the bulk of the wiring and such for the “for sale” houses. I am given an “allowed hours” to do the work, if there is a legitimate reason to run over there is some flex. Alot of the time I dont push myself that hard and if it takes an hour or two longer I just write it up at the base hours and if I want to take a leisurely lunch, nobody really cares as long as I finish within a 2-3 day window and within budgeted hours. Once I am done I submit a description of the work completed and an invoice and upload pictures of stuff I installed including documenting model and serial numbers of equipment installed and showing it working. Every month they look for any jobs completed over 30 days ago and cut me a check. I still have time to service a few of my old computer clients on the side and have been doing uber/lyft on weekend nights just to smooth out the cash flow a bit.
Its actually pretty much the best gig I have ever had, driving a new car, took about 4 weeks off over the last 10 months. Its been great.
Retention and punchlists are two of the main reasons constructions companies go out of business. Retention is a “You don’t get paid until I get paid” deal. This can be a nightmare for jobs with multiple subcontractors and is one of the cross checks to ensure quality work is done by everyone.
By law, contractors aren’t obligated to pay their subcontractors (who may in turn have their own subcontractors) until they get paid, which may be years for a large project in which time everyone must wait for final retention payment. This can kill a company, because that 10% (could be 5% or 15%) could be the profit margin for the project.
In addition to state building inspectors, the person/company contracting the project will usually have someone inspect the project themselves. The inspectors will create a punchlist that must be completed before final payment is made. Punchlists are a Catch-22 for construction workers. Do a shoddy job and you’ll be called back (and paid) to make things right. This is built into the budget for the project. But if you have to do more punchlist items or take longer than budget projected and you’ll either not be put on another job or be fired because your subpar work is causing final payment to be delayed for all contractors/subcontractors involved.
In addition, if your company is known for doing work/has workers that causes a delay in final payment, you’ll quickly have no one wanting for work with you. Which in turn will cause you (the company) not getting projects since you’re unable to fulfill the requirements Few construction companies carpenters, electricians, plumbers, etc on staff. That’s what subcontractors are for. Also, if it’s a state or federal project, you’ll likely be required to union workers.
AFAIK, all construction workers are paid hourly. Definitely paid hourly if they’re union workers. Field Construction/Project managers may be salaried, but they’re usually not allowed (definitely not on union jobs*) to do any type of labor work on the job.
Unless you’re an independent contractor or self-employed, health and other benefits are provided by your employer (the contractor).
As for slack workers, see my post above. Bottom line, if you slack off or do poor work, you won’t keep your job long! If you see someone just standing around and watching, they’re likely a manager or inspector.
*I’ve heard stories of managers being fired or the contractor taken off union jobs if a non laborer was caught doing work on a project.
Fenestration is a skilled job that is nearly always contracted out here, and I guess, in the US too. An acquaintance did a self-build some years ago and opted to do his own windows to save money. He measured up, placed his order and they all turned up on the due day. He made a small error with his measuring and paying for the replacement swallowed all of the savings and some.
On commercial buildings with huge sheets of glass, they need a lot of specialised equipment.
I used to do the payroll for a construction company and sometimes would laugh at the timesheets the laborers turned in. Since everyone had to do their own handwritten timesheet, they often wouldn’t match and I would tell the construction manager, “If they’re going to lie, at least have them all tell the same lie!”.
Examples: On a four man crew, three guys would say the took a 1/2 hour lunch and one guy would say no lunch. Huh? Our rule was everyone goes to lunch together. You can’t have one guy working alone.
They would sometimes go to different locations during the day and all went in one truck. One guy would say he was at one site while everyone else was at another. I’d ask the manager, “Did they leave this guy alone? Didn’t they miss him?”
After the manager talked to guys, the answer was always, “Oh, I forgot” or “The other guys are right, I was with them.”. SIGH “If they’re going to lie, at least have them all tell the same lie!”.
A big No-No was if the Project Manager or inspector visited the construction site and no one was there. When asked about where everyone was at the time the visit was made, the guys would say, “Oh, we went to the store to buy ice/drinks.” All four of you? I better not see that time logged as worked on your timesheet!
I’m sure it varies by contractor and construction site, but I worked as a Teamster on a new hotel one summer as a college student. It was a union job. Never in my life have I experienced a culture with such a poor work ethic. We got in trouble for working too hard. It made everyone else look bad, so they said. Respect seemed to go with who got paid the most for the least work. The most respected man on the site was the guy who ran the automatic elevator.
Hopefully, this was an isolated experience and not representative of construction work in general.
The workers aren’t motivated to work faster, especially union workers, because once they’re done with the project they may spend time on the bench. No work, no pay.
The company I worked for was non-union, but we sometimes got State and Federal projects that required paying the workers the higher prevailing/Davis-Bacon wages. Sometimes the guys would rush through a non-union job which pays 1/3 to 1/2 what they would get on a union one, to get to work on the union job. Their manager would sometimes tell them to slow down so less punch list items (which can already be extensive) are required. As I stated above, the guys are already paid, but the contractor won’t get paid until the project is complete.
The other factor is that approximate material and labor costs are generally known to person/company paying for the project. Some Federal projects require disclosure of actual material costs and we were allowed only a certain percentage of markup, so there’s no secrets. And since we have to pay Davis-Bacon (union) wages, our labor costs are known too. If the guys whip through the job too quickly, it may affect the cost expectations on other projects.
Most labor has reference guidelines either set or by the contractors past project knowledge. As an example, there’s a reference guide (can’t remember the name) that used to be multiple books, but is now software that is used to estimate how long a repair should take. If it says it will take two hours to do a job and the mechanic does it in one, the mechanic/shop made an extra hour’s profit. If you’re lucky and have a good mechanic, they may just charge you for the hour they needed. This may happen on small construction projects, but on projects that require a bid, there’s no discount if the labor hours are less. The exception is when there are Change Orders which may decrease or increase the materials and labor required .
Most workers are paid by the hour, but there are serious exceptions. Drywall, tile, framing and masonry can be paid by the square foot (not just to the subcontractor, but from them to the workers). There are some motivated Mexican boys in the southwest who are earning $75-100 an hour hanging or taping drywall. It’s impressive to see. It can result in some quality problems, or it can be an exquisite dance!
Just remembered. I always found it funny that a project that would normally take 3-4 days on Oahu (I’m in Hawaii), can be done in two days when the guys have to go fly and stay on a neighbor island for a project because they want to come home!
This is why any contracting entity that has its shit together will require a project schedule to be submitted by the contractor and approved before they’re allowed to even set foot on the construction site. Barring unforeseen delays (weather, etc) and change orders, the schedule can be used to flog a contractor mercilessly. If the contractor falls behind for no apparent reason, he is required to submit another schedule showing how he plans to make up the time. Payment is made for work completed and not before. The penalty for not completing a project on time can vary, including the above-mentioned retention.
In some cases, when there are actual damages to the contracting entity (such as lost rental income), liquidated damages may be assessed against the contractor. This is a daily amount that is calculated using actual projected losses. This is pure loss to the contractor, which he can never recoup without going to court, and is a powerful motivator to get the job finished.
I worked for a steel construction/engineering company in the late 80s/early 90s, and on some jobs our welders would get an hourly rate + “piecework;” $x.00 per foot of sound weld. We wouldn’t do it everywhere; some local unions wouldn’t agree to those terms. It would definitely get some competition going among the guys. If there was 1,000 ft of corner weld on the floor of an oil storage tank and 4 welders, each one wanted to get the biggest piece of that pool of money.
They were the only trade I can think of that was paid any differently than just an hourly rate.
Years ago there was a building going up near me. On the day the recessed lights were scheduled to go in, the electricians showed up and got to work. As soon as they started cutting holes in the drywall (to recess the recessed lights), the carpenters walked off the site (or threatened to) since drywall work was their job.
I feel like the story, as I heard it, is a bit blown out of proportion since I’d think that union electricians would know not to mess with drywall and the contractor would make sure no one steps on anyone’s toes.
