When hiring a tradesperson, you will typically be offered either a fixed price for the job or a day rate for their time. Both have legitimate uses — but they carry different risks for you as a client, and the right choice depends on how well-defined the work is.
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Find a tradesperson — freeWhat is a fixed price?
A fixed price (sometimes called a fixed quote or lump sum) means the tradesperson agrees to complete the defined scope of work for a set amount, regardless of how long it takes them. If the job takes longer than expected, they absorb the cost. If it takes less time, they keep the difference. For you, the main advantage is certainty — you know exactly what you will pay, assuming the scope does not change.
What is a day rate?
A day rate means you pay for the tradesperson's time — typically a set amount per day (or half-day), plus the cost of materials. Day rates vary significantly by trade and region. Electricians and gas engineers typically command £200-£400 per day; general builders and labourers often £150-£250. The risk for you is that if the job takes longer than expected, your costs increase proportionally.
Day rates are common for exploratory or investigative work where the extent of the problem is unknown upfront. A fixed price requires the tradesperson to understand the full scope — if that is impossible, a day rate is more honest.
— Federation of Master Builders
When fixed price is better
Fixed prices work best when the scope is clearly defined and unlikely to change — for example, fitting a new bathroom, installing a kitchen, or replacing a boiler. With a clear specification and agreed materials, the tradesperson can accurately price the job and take on the time risk. If you have a budget ceiling, a fixed price also gives you cost certainty.
When day rate is more appropriate
Day rates are more appropriate for investigative or reactive work — finding and fixing a leak, diagnosing an electrical fault, or addressing damp where the full extent is unknown until walls are opened up. In these cases, asking a tradesperson to fix-price the job is unreasonable, as they cannot know how long it will take until they start.
Protect yourself with a day rate
If you agree to a day rate, ask the tradesperson to estimate how many days the job is likely to take, and agree that they will notify you before exceeding that estimate. This gives you a de facto ceiling without constraining their ability to price fairly.
What to watch out for
With fixed prices, watch for quotes that are suspiciously low — these may involve cutting corners on materials, or a tradesperson who has underestimated the job and will look for extras to make up the shortfall. With day rates, watch for jobs that seem to be dragging without good reason, and ask for regular progress updates.