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Relocation Bonus

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Old 01-11-2007, 01:00 AM   #1
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Relocation Bonus

I think I'm about to be asked by my boss to oversee a project out of town. I do not want to go unless I am compensated above the normal per diem and travel expenses. Does anyone have any numbers to compare?

I will be overseeing foundation construction of 30+ story high rise. The site is about 500 miles from our office. My portion of the project should take about 3 months.

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Old 01-11-2007, 08:08 PM   #2
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Re: Relocation Bonus

A lot depends on the markets you're going to and coming from. If he can readily find someone to take the job in the other city, but wants to send you just to avoid the hassle, asking for a bonus may get you a pink slip instead. If, on the other hand, the other area is booming and there's no one available there to take the job, he may cough up some cash.

Also, if you're in a rural area and you're being shipped to a higher-paying locale, you should at least get bumped up to what you'd be paid if you worked there all of the time. When we send guys to NYC from NJ for any period of time, they get a bump to the NYC rate for the hassle of working in the city, and because we'd pay that much for an NYC guy.

I'd be careful about pushing the issue, as the boss may see it as a sign that you're not "loyal" to him. While he may give in in the short term, your long-term opportunities at the company may be compromised. I guess you've got to weigh how much the hassle is really worth to you- if you're a young single guy, it should be no big deal. If you're leaving a wife and kids and heading out of town for 3 months, that a different set of circumstances. Only you can decide what it's all worth to you, but I wouldn't count on more than maybe a 10% increase in your salary for the duration of the project.



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Old 01-26-2007, 01:27 PM   #3
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Re: Relocation Bonus


I used to do out of town and out of country projects all the time. Most ranged in time from two weeks to one year. (I used to have over 250 hotel nights per year) Myself as project manager or site engineer, superintendents and some senior foreman were all from out of town and we all got the same per diem.

Our typical rates were a daily per diem that covered hotel and meals. For Detroit it was $100/day, for Chicago it was $110/ day, L.A. $125/day, Mexico $90/day(which was not enough because hotels cost as much or more in Mexico. Meals were the only thing less expensive). Rental cars were on top of that at cost.

These rates would be for any time you are on site, even the weekends. Travel and airfare was always reimbursed at actual cost, or a pre negotiated per mile rate, ususally the IRS limit, sometimes more.

Nobody I have heard of from other companies, including the engineers or technicians ever got more base pay, just the per diem, which varied but was close.

Without asking for more money, you can take the per diem and make money off of it. At $2800 per month more than I ordinarily got, I was pocketing about half of that after expenses without living in a dive. I was living in Hiltons, Holiday Inn, Hampton Inn, La Quinta hotels. All of them will negotiate their rates for long term stays (down to half of their nightly rates, or less). Plus breakfast is included. Also if you stay more than 30 days, the high hotel taxes usually are not charged (making the room even less expensive). One PM I know, was allowed to travel home at the company expense every weekend (commonly it is every other weekend), and I had my spouse fly out to visit on company expense. It all depends on your company rules, how much they want to accomodate you, and how much they want YOU to be the site engineer. Everyone realizes that out-of-town assignments are a burden on your pesonal life, and will try to do things to make it more palatable.

Hope this helps
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Old 08-18-2007, 09:56 AM   #4
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Re: Relocation Bonus

I've traveled for 3 years straight. Doesn;t matter if the job was 300 miles or 3,000 miles from the office. Here was my deal:

10% salary increase
$40 / day (Maximum allowable amount per IRS)
All living costs were re-imburseable (Per the IRS)
Travel home EVERY weekend (re-imbursable)

Hope this helps.
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Old 09-15-2007, 07:57 AM   #5
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Re: Relocation Bonus

My standard deal is salary / benefits plus I get 3% of all profits if we make the estimated profit on a job, and 10% of all profits above the estimated amount.

If I have to go out of town for extended time, I get 6% of estimated profit, and 20% of profits above estimated. Plus, of course I have a company card that I put ALL expenses on... hotel, meals, etc...

The owners position is that this arrangement "puts a little skin in the game".

Keeps me motivated... haha

Now, that deal is at the PM level... I only answer to one person, the owner.

We have a similar system for the foreman / superintendent level that involves bonuses based on labor savings vs total job savings.... they get 20% of all estimated labor costs saved on a job in town.... and 40% on extended out of town. They get a spreadsheet every week that reflects the labor hours budgeted by phase for every job to help them track.

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