completion bonus

We are not in the business of keeping people's completion bonuses. We want to pay you for good and Speedy work That does not need to be redone.

ESTABLISHING COMPLETION BONUS

We established the completion bonus based on the amount of work that is done, if it is a large with four bedroom house. That is a total gut job. It would be anywhere from 1500 to $2,000, if it's just a light turn for the first time like a small house or an apartment that basically just needs flooring and paint and other things like that it would be closer to $500.

If something has already been renovated by us and we're just refreshing it so we can sell it, there's no completion bonus for that.

Jeff is the one who determines the amount of the completion bonus for each of the properties, once established a Purchase Order will be created.

SAMPLE OF TO-DO IN COCONSTRUCT FOR COMPLETION BONUS

SAMPLE OF PURCHASE ORDER FOR COMPLETION BONUS

PAYING COMPLETION BONUS

We pay 50% of the completion bonus as soon as it has the good walkthrough checklist and a final inspection or Certificate of Completion/Occupancy if applicable.

If the PM does not use the Completion Checklist with photos of completed work BEFORE scheduling the Final Matterport, he will receive a $150 deduction from the completion bonus.

The other 50% of the completion bonus will be paid when the property is rented, but we must have one complete month's owner statement after the property is occupied to ensure that the Property Manager does not have to fix anything the project manager missed. Although we have found that our final walkthroughs and completion checklists have prevented most all callbacks, we must keep this delay of final payment in place.

(Note: Monthly Owner's statement will be available on the 3rd week of the Month. For example, January's Owner statement will be available on the 3rd week of February)

Unless other arrangements were made with the Project Manager, we pay the Completion Bonus approximately 6-8 weeks after a property has been rented.

DEDUCTION ON COMPLETION BONUS

There are three components to how we go about paying the completion bonus;

FIRST is for making sure that there are no problems with the house that we find later.

SECOND is for the speed at which we get done. If something takes an unreasonable amount of time because the project manager is not doing their job, there will be deductions for that. Also, for our average house, we have a mortgage payment of roughly 1200 dollars a month while it's being renovated, so time is of the essence for getting these things done.

THIRD is the overall look of the house. It needs to follow our standards. If it doesn't then there could be a deduction for that because Project Manager is not following our standards that are outlined in the house.

Also, a deduction will occur if a work has to be redone because of an error that the project manager made, like if a house is left open and there's a lot of stuff stolen from it. Basically, if there is something that is a big deal that everybody can agree on, it is a big problem. There's a deduction for that.

NOTE: We're only deducting project managers for things that they have not caught on their walkthroughs that they should.

As an example, a dishwasher does not work like it should. Or a window doesn't open.

Or there's weather stripping missing on the door.

But a tree falls into the house we would not deduct anything from the completion bonus unless we specifically said that the tree needed to be removed.

Furthermore, the Project manager will lose part of his completion bonus by repeatedly not using the how-to manual.

Below is the sample of Monthly Owners Statement

Completion Bonus Deduction Template

We use this template to determine the final deduction bonus of the PM based on the repairs made in the house that should have been caught during the walkthrough or on the renovation.

Note: We do not charge the PM for the entire amount of the repair.

We only take a certain percent, we categorized the repairs as High (50%), Medium (25%), or Low (10%) based on the severity of the repairs.

Note: A deduction of $50 on the completion bonus when PM missed weekly calls with no communication.

COMPLETION BONUS FOR TERMINATED PROJECT MANAGER

There is no Completion Bonus if the PM is terminated or quits, even if the project is completed prior to the termination. This is due to the cost we incur for the re-assignment of the current projects and time delays that cost us money in the process. This also covers the admin cost of all the work that goes into creating and re-assigning projects.

Note: Burr Oak terminates a project manager for a very severe reason, we're willing to try to work with people on stuff but It generally takes a flagrant vial of a flagrant mistake to cause termination.

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