Day work and price work can both be profitable. They fail in different ways. Day work can punish efficiency or create customer anxiety. Fixed pricing can turn a good job into a loss when the scope was guessed.
Start with the risk, not the habit
A pricing method is a way to allocate risk. Under a day rate, the customer carries more of the risk that the job takes longer. Under a fixed price, you carry more of it.
That makes a day rate sensible for fault finding, opening up, remedial work and jobs where the condition cannot be inspected properly. A fixed price is often easier for repeatable work with a clear specification and dependable access.
Day rate suits
- Unknown condition behind existing work
- Changing scope
- Investigation and fault finding
- Customer-led work in stages
Fixed price suits
- Repeatable jobs
- Clear drawings or specification
- Known access and programme
- Work where efficiency creates value
The comparison that matters
Do not compare a £300 day rate with a £1,500 quote and conclude that the quote is better. The quote has materials, extra journeys, unpaid preparation and risk inside it. Compare what remains for the business after the direct job costs.
minus direct materials
minus hired labour and plant
minus job-specific travel and disposal
equals job contribution
Job contribution divided by all working days used equals contribution per working day
Illustrative worked example
A three-day job priced two ways
This is a made-up example to show the method. It is not a recommended rate or a claim about typical UK pricing.
A tradesperson expects three days on site. Direct materials cost £420. Quoting, collecting materials and one return visit add another day in total.
Day work: four days at an illustrative £280, plus materials at cost, gives £1,540 invoiced. After £420 of materials, the contribution is £1,120, or £280 for each of four working days.
Fixed price: an illustrative quote of £1,650 leaves £1,230 after materials. Across four working days, that is £307.50 per day. If the site work slips by one day, it becomes £246 per day across five days.
£307.50 becomes £246
The fixed price looks stronger only while the time assumption holds.
Price work needs a scope boundary
A fixed price is only fixed for a fixed scope. List what is included, what the customer must provide, what has been allowed for and what will be charged separately. Photographs and a short written specification can prevent a vague conversation becoming an expensive disagreement.
Useful exclusions might cover concealed defects, additional work requested after acceptance, out-of-hours access, parking, waste beyond the stated allowance and making good by other trades. The exclusions must fit the actual job, not a generic paragraph copied into every quote.
Day work needs clarity too
State the working hours, whether travel is charged, how materials and collection time are treated, when progress will be reviewed and what records the customer will receive. A day rate without these details can feel open-ended to the customer.
Clarity is what makes either method feel fair. The price format alone does not create trust.
A simple decision check
- Can you inspect the work well enough to define the scope?
- Have you done closely comparable work before?
- Can you control access, sequencing and dependencies?
- Does the price include all off-site and return time?
- Is there enough contingency for the risks you are accepting?
- Can the customer understand what changes the price?
Use a hybrid when the uncertainty is concentrated
Some jobs are uncertain only at the start. You can charge an agreed investigation stage on day work, then provide a fixed price once the condition is visible. Another option is a fixed price for defined work with clearly agreed day-work rates for variations.
Put the arrangement in writing before work starts. For larger or legally sensitive jobs, get advice that fits the contract and your circumstances.