For some reason, some managers believe that always telling the craft labor the project is losing money is a good way to increase the productivity but I don’t see the logic behind this strategy. I believe being honest to the workers in the field is the one and only way to go.
Lying does nothing but demoralizes the employees and will not encourage them to increase their productivity. In general, people want to do a good job and take pride in the work they do. Telling them how the job is progressing is another way of saying they are doing a good job which can actually make them work harder. A person will be more productive with a positive attitude compared to being frustrated and negative.
If trust is an issue with the craft, then there are much bigger problems to deal with especially on remodel projects. The client’s image of the contractor is based on the crews they see all day and every day, not the project manager or anyone else that may visit the site every few days or weeks. So how can a contractor trust the craft to represent the company but not trust the craft enough to be honest to them?
Unfortunately, not every project is a winner, but after the trust is established between the craft and management, telling the craft the project is behind will carry much more weight. It’s really no different than the old story of the boy crying wolf.
If a person is going to milk the job, they will milk the job no matter what. If a contractor can’t trust an employee, then maybe they need to reconsider that employee’s employment.
