a question for trades people - day rate a better option!
Discussion
Hi all,
historically i have not accepted fixed prices for work i have had done, usually preferring to 'take the risk' of paying day rate (and obviously keeping an eye on productivity). this policy stems from a residual distrust of accepting fixed price jobs from trades people on account of them over compensating for possible overruns.
so my question is (and please answer honestly) - how do you price jobs? do you price comfortably in excess of the 'real' anticipated time taken! or do you just add a small percentage over how long you think it'll really take?
how does it usually work out for you? barring disasters, do you generally come out in front/behind/way in front of the earnings you would have taken from the same job under a day rate?
in short, an i sensible to only accept day work or am i just getting a slower job and not actually saving any money....
historically i have not accepted fixed prices for work i have had done, usually preferring to 'take the risk' of paying day rate (and obviously keeping an eye on productivity). this policy stems from a residual distrust of accepting fixed price jobs from trades people on account of them over compensating for possible overruns.
so my question is (and please answer honestly) - how do you price jobs? do you price comfortably in excess of the 'real' anticipated time taken! or do you just add a small percentage over how long you think it'll really take?
how does it usually work out for you? barring disasters, do you generally come out in front/behind/way in front of the earnings you would have taken from the same job under a day rate?
in short, an i sensible to only accept day work or am i just getting a slower job and not actually saving any money....
Things like ground work aside most tradesmen of any worth will be pretty much spot on in their estimate of how long it takes to do things and what's involved. That's my experience. So there should be little difference between a fixed price and a day rate.
Things only get complicated where large jobs with unknowns and a mix of trades and people factor and then you're obviously paying partly as an insurance if you opt to go fixed price.
Things only get complicated where large jobs with unknowns and a mix of trades and people factor and then you're obviously paying partly as an insurance if you opt to go fixed price.
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