views:

595

answers:

4

What would be a fair commission to give to a project manager whose duties are to manage the project team and collaborate with clients? This is on a per project basis and based on the net (project price - cost of development).

Is 30% about right?

EDIT: The developers are going to be managed remotely since they are out of state

A: 

None. Project managers should not be commission paid. It has been shown to be impossible to define terms in such a way that they will not game the system.

Stephan Eggermont
I agree but on these few projects that's how I need to start, so I wanted a general idea
Arthur Chaparyan
A: 

30% is a bit too high in my view. It should be a fixed amount so that when the project cost changes (it will , it will) , the payout does not.

However, as others have pointed out , this opens up scope for a lot of abuse by a project manager who is so inclined.

Learning
+1  A: 

I think it is fair. Also this way the manager share wins or looses. 30% is too high. I think 15% will do. But it depends on your project, costs etc.

Now, how is this programming related again?

OscarRyz
A: 

I've seen some interesting payments where there is a profit margin for the PM placed on the contract.

EG contract is estimated at 1million, so 1.1million is payed.

If the PM delivers the contract, anything left of the extra 100000 on the contract is the PM's, plus a fixed retainer.

Spence