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UK Daywork Rates

Construction Rates for Prime Cost of Daywork - UK Construction Industry - From 6th April 2009
Construction Information
Manufactured by: Construction Rates
Model: RICS Daywork Rate 2009
Product ID: Daywork-UK-2009
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UK Daywork Rates

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Remember that there is a big difference between a specialist tendered hourly rate used to build-up their measured rate items measured in m, m2, Nr, item, PC Sums or the like.  The daywork rate is often negotiated down to the lowest of the competing contractors.  This can be counter productive if the specialist can then demonstrate that their Bill of Quantities (BQ) rates are made using a higher rate.  This can be demonstrate by Labour Histograms, Programmes and manufacturers prices, invoices and product data. There is no consistent all-in daywork rate as it depends on many factors the main one being the specialist overhead and profit (OH&P). 

The real test of a Daywork Rate

A specialist may look to command a rate which is much higher than their actual costs, this can easily be tested if they are a limited company which has been trading for 2 years plus.  The companies accounts are submitted to Companys House as a matter of public record and are verified by their Auditor.  These accounts show the turnover, workforce levels for the year and the costs including actual OH&P.  By dividing the turnover by the work force hours this gives you the company's fair and reasonable return per hour all-in for all labour materials and OH&P. The abstraction of materials and sub-contractors costs will give the daywork rate including OH&P.  As you can imagine this will be a different rate for all specialists as each will have their own unique 'footprint' of overhead, profit and costs which are governed by how they operate and their efficiency.  The cost of finaincing their operations will also be included where they operate on bank funding.  Any company that is cash rich will also generate profit from interest etc.

 Common Misconceptions of Daywork Rates

People often have a rate in mind for a certain trade for instance 25.00 per hour for a Painting Contractor.  This is illogical as described above the 'footprint' of the specialists costs and how they operate means that their rate is a provable and testable fact that cannot be disputed or questioned once the proper tests have been correctly undertaken.  Likewise, the addition to nett costs of a percentage is also similarly without basis.  A main contractor my add 3% for OH&P, however, a main contractor turning over half as much may have to recover nearly double this percentage.   A specialist turning over as little as 8 million with 30 Head Office staff and a Workforce of 70 directly employed people may need to recover 35% on top of their net cost in order to properly recover the cost of working on time related tasks.

Professionals should test Daywork Rates

A professional who is providing advice to a Client or a Contractor who is working on an open book or cost plus basis has a duty to avoid professional negligence claims to test daywork rates of each specialist in order to demonstrate 'fair and reasonable' rates are paid and value for money is obtained.  It is also true that a breakdown of tendered rates is not a true test of a valid rate as the use of public records of audited accounts is the only true way to ensure that value for money is obtained.  It can also be establish if the contractor tendered at a loss which should also be applied to all variations and can be used to defend a claim should one be correctly applied for under the terms of the contract or under common law.     

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Construction Rates for Prime Cost of Daywork - UK Construction Industry - From 6th April 2009    
 
Dayworks - Revised Hourly Base Rate For Labour 
All Main Grades - RICS Definition of Prime Cost
 
Hourly rates for the prime cost of dayworks have been recalculated to take account of all changes effective from 6th April 2009.              
                         
TABLE 1 SUMMARY

(Excluding Northern Ireland)

               
                       
FOREPERSON  18.53                      
SENIOR CRAFTSPERSON (RAS + RAW)  17.20                      
SENIOR CRAFTSPERSON (RAS)  16.56                      
SENIOR CRAFTSPERSON (RAW) 15.92                      
SENIOR CRAFTSPERSON 15.29                      
CRAFTSPERSON (+2RA) 15.29                      
CRAFTSPERSON (+1RA) 14.66                      
CRAFTSPERSON 14.02                      
INSTALLER 12.69                      
ADULT TRAINEE 10.67                      
MATE OVER 18 10.67                      
JUNIOR MATE 16-17 4.86                      
JUNIOR MODERN APPRENTICE 6.87                      
INTERMEDIATE MODERN APPRENTICE 9.80                      
SENIOR MODERN APPRENTICE 12.69                      
 
 
TABLE 1                        
 
Dayworks - Revised Hourly Base Rate For Labour 
All Main Grades - RICS Definition of Prime Cost
 
Hourly rates for the prime cost of dayworks have been recalculated to take account of all changes effective from 6th April 2009.              
FROM 6th April 2009 (EXCLUDING NORTHERN IRELAND)
 
 
  Foreperson Senior Craftsperson (RAS+RAW) Senior Craftsperson (RAS) Senior Craftsperson (RAW) Senior Craftsperson Craftsperson (+2RA) Craftsperson (+1RA) Craftsperson Installer Adult Trainee Mate Over 18 Mate 16-17
Promulgated hourly rate 14.71 13.66 13.16 12.66 12.16 12.16 11.66 11.16 10.11 8.52 8.52 3.95
Annual standard earnings excluding all holidays 45.8 weeks x 38 hours 25,601.28 23,773.86 22,903.66 22,033.46 21,163.26 21,163.26 20,293.06 19,422.86 17,595.44 14,828.21 14,828.21 6,874.58
Annual industry holiday 4.6 weeks x 38 hours                                  WEEKLY      HOLIDAY      CREDIT      AND      WELFARE      STAMP      SCHEME                
Public holidays 8 days x 7.6 hours                                  WEEKLY      HOLIDAY      CREDIT      AND      WELFARE      STAMP      SCHEME                
Additional payments if applicable due to abnormal conditions ? ? ? ? ? ? ? ? ? ? ? ?
SUB-TOTAL 25,601.28 23,773.86 22,903.66 22,033.46 21,163.26 21,163.26 20,293.06 19,422.86 17,595.44 14,828.21 14,828.21 6,874.58
Employers' national insurance contributions 2,632.10 2,398.19 2,286.80 2,175.42 2,064.03 2,064.03 1,952.65 1,841.26 1,607.35 1,253.15 1,253.15 235.08
Annual holiday credit and welfare stamp 52 weeks 4,012.32 3,755.96 3,630.64 3,505.32 3,385.20 3,385.20 3,261.44 3,135.08 2,875.08 2,480.92 2,480.92 1,348.36
Annual prime cost of labour 32,245.70 29,928.01 28,821.11 27,714.20 26,612.50 26,612.50 25,507.15 24,399.21 22,077.88 18,562.27 18,562.27 8,458.02
Hourly base rate of prime cost 18.53 17.20 16.56 15.92 15.29 15.29 14.66 14.02 12.69 10.67 10.67 4.86
 
 
TABLE 2                        
 
Dayworks - Revised Hourly Base Rate For Labour 
All Main Grades - RICS Definition of Prime Cost
 

 

Hourly rates for the prime cost of dayworks have been recalculated to take account of all changes effective from 6th April 2009.              
APPLICABLE FROM 6th April 2009 (INCLUDES NORTHERN IRELAND ONLY)                      
 
  Foreperson Senior Craftsperson (RAS+RAW) Senior Craftsperson (RAS) Senior Craftsperson (RAW) Senior Craftsperson Craftsperson (+2RA) Craftsperson (+1RA) Craftsperson Installer Adult Trainee Mate Over 18 Mate 16-17
Promulgated hourly rate 14.71 13.66 13.16 12.66 12.16 12.16 11.66 11.16 10.11 8.52 8.52 3.95
Annual standard earnings excluding all holidays 45.8 weeks x 38 hours 25,601.28 23,773.86 22,903.66 22,033.46 21,163.26 21,163.26 20,293.06 19,422.86 17,595.44 14,828.21 14,828.21 6,874.58
Annual industry holiday 4.6 weeks x 38 hours                                  WEEKLY      HOLIDAY      CREDIT      AND      WELFARE      STAMP      SCHEME                
Public holidays 8 days x 7.6 hours                                  WEEKLY      HOLIDAY      CREDIT      AND      WELFARE      STAMP      SCHEME                
Additional payments if applicable due to abnormal conditions ? ? ? ? ? ? ? ? ? ? ? ?
SUB-TOTAL 25,601.28 23,773.86 22,903.66 22,033.46 21,163.26 21,163.26 20,293.06 19,422.86 17,595.44 14,828.21 14,828.21 6,874.58
Employers' national insurance contributions 2,632.10 2,398.19 2,286.80 2,175.42 2,064.03 2,064.03 1,952.65 1,841.26 1,607.35 1,253.15 1,253.15 235.08
CITB LEVY 110.00 110.00 110.00 110.00 110.00 110.00 110.00 110.00 18.00 18.00 18.00 18.00
Annual holiday credit and welfare stamp 52 weeks 4,012.32 3,755.96 3,630.64 3,505.32 3,385.20 3,385.20 3,261.44 3,135.08 2,875.08 2,480.92 2,480.92 1,348.36
Annual prime cost of labour 32,355.70 30,038.01 28,931.11 27,824.20 26,722.50 26,722.50 25,617.15 24,509.21 22,095.88 18,580.27 18,580.27 8,476.02
Hourly base rate of prime cost 18.59 17.26 16.62 15.99 15.35 15.35 14.72 14.08 12.70 10.68 10.68 4.87
 
Dayworks - Revised Hourly Base Rate For Labour 
All Main Grades - RICS Definition of Prime Cost
 
Hourly rates for the prime cost of dayworks have been recalculated to take account of all changes effective from 6th April 2009.              
                         
TABLE 3                        
 
Dayworks - Revised Hourly Base Rate For Labour                       
All Main Grades of Apprentices - RICS Definition of Prime Cost                      
 
Hourly rates for the prime cost of dayworks have been recalculated to take account of all changes effective from 6th April 2009.              
Apprentices Applicable from 6th April 2009                        
 
 
  Junior Intermediate Senior                  
Promulgated hourly rate 5.53 7.84 10.11                  
Annual standard earnings excluding all holidays 45.8 weeks x 38 hours 9,624.41 13,644.74 17,595.44                  
Annual industry holiday 4.6 weeks x 38 hours WEEKLY HOLIDAY CREDIT AND WELFARE STAMP SCHEME                  
Public holidays 8 days x 7.6 hours WEEKLY HOLIDAY CREDIT AND WELFARE STAMP SCHEME                  
Additional payments if applicable due to abnormal conditions ? ? ?                  
SUB-TOTAL 9,624.41 13,644.74 17,595.44                  
Employers' national insurance contributions 587.06 1,101.66 1,607.35                  
Annual holiday credit and welfare stamp 52 weeks 1,744.08 2,311.40 2,875.08                  
Annual prime cost of labour 11,955.55 17,057.80 22,077.88                  
Hourly base rate of prime cost 6.87 9.80 12.69                  

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