Labor Based Contracts VS. Performance Based Contracts
This answer will always be different based on the community, landscape needs and contract details, but to explain a little more in detail on how our labor force is derived, please read below.
In the 1980’s the common way of managing landscapes was what’s called a labor based contract. It basically meant instead of being landscapers we were labor brokers. We would put for example 1 man at the job for 40 hours and get paid based on that, not what he knew or what he performed but just the fact that he shows up to the community for 40 hours.
Today most landscape companies propose what is called a performance based contract. This means that because there are varying cycles throughout the year and the plants perform differently we can adjust for that. For example, in the winter plants and turf grow very little which we would lighten our staff on for that time of year. In the summer and fall when your plants are growing fast and the leaves are falling, we have additional labor that we can use to keep up with the increased landscape needs. Also, with the extensive training we do the staff can accomplish the same tasks in say 32 hours rather than the 40 as before.
These changes from labor based to performance based contracts have allowed Pacific Green Landscape to keep our pricing affordable and services honed and specific.
The graph below shows an example of a community with Straight Labor compared to Performance Labor. Hours are based on weekly used hours.
Example Hours based on job size