Dayworks in construction
Daywork is a means by which a contractor is paid for specifically instructed work on the basis of the cost of labour, materials and plant plus a mark up for overheads and profit. It is generally used when work cannot be priced in the normal way.
Examples of when daywork may be applied are when unforeseen obstructions are encountered during ground works or when work is instructed for which there are no comparative rates in a bill of quantities.
It is usual for most contracts to contain clauses that provide a method of evaluating variations, additional work and instructions by using existing contract rates and prices. NEC contracts favour pre-agreed sums based on acceptance of a contractor’s quotation.
There are two basic options as to how daywork rates can be priced:
Option A – a percentage addition
- Prime cost to which a percentage is added for overheads, profit and incidental costs.
Option B – all inclusive rates
- All inclusive rates are quoted at tender and incorporated in the contract documents. These include an allowance for overheads and profit, either fixed for the period of the contract, or, in the case of contract conditions that are index linked, subject to an inflation allowance.
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