Benchmarking Project Manager’s Compensation

Document Type

Article

Publication Date

September 2019

Abstract

The US construction industry has faced fluctuating economical periods in the 21st century. In 2008, the industry decline was so extreme that it not only affected the construction industry but also the entire economy of the nation. Those fluctuations affected many aspects of the construction industry, compensation rates were one of the most impacted areas. With the construction industry’s fragile and highly connected nature to economic trends, it became harder to determine remunerations of the workers in the industry. This study focuses specifically on construction project managers’ (PM’s) compensation. The objective of this study was to benchmark project manager’s compensation in general contracting firms. The intended audience are GCs or human resource departments of general contracting firms. The data was collected from privately-held Georgia-based general contracting companies in a survey conducted in 2016. The study analyzed PM’s compensation rates alongside industry and market statistics to identify correlating trends. The results of the study add to the field of business and management practices in construction. The results provided patterns of compensation for PMs in the construction industry. The study concludes that PM compensation is not determined only by the size of an organization, but it depends on a set of organization specific factors including gross revenue earnings, and experience (age).

Journal Title

Construction in the 21st Century -11

Volume

11

First Page

144

Last Page

151

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