6 Things to Agree Before a Tradesperson Starts Work

1. The pricing models

A fixed price for a defined scope, where the trader carries the risk of it taking longer.

A day rate, where you carry that risk and pay for the time taken.

Cost plus, where you pay materials at cost plus a stated margin, plus labour.

Each is legitimate; problems come from ambiguity about which applies.

2. When each is appropriate

Fixed price for well-defined work: fitting a bathroom to a specification, laying a defined area of flooring.

Day rate for investigative or unpredictable work: chasing a leak, repairing an unknown fault, sympathetic repairs to an old building.

For mixed jobs, agree a fixed price for the known elements and a day rate with a cap for the unknown.

3. What a day rate should specify

The hours constituting a day, and what happens to part days.

Whether travel time is charged.

Whether the rate covers one person or a team.

Whether materials, waste disposal and equipment hire are included.

4. Materials

Trade accounts frequently give discounts not available to you, and traders may pass on some, all or none of it.

Ask whether materials are charged at cost, at cost plus a margin, or at retail.

Supplying materials yourself saves the margin and shifts responsibility to you if something is wrong or short, which most traders will point out.

5. Protecting both sides

Confirm the scope, the pricing model and the rate in writing before work starts.

Agree a stage payment schedule rather than a large deposit.

Record variations as they arise.

Keep certificates for regulated work, which are required when selling the property.

6. Judging value

The cheapest day rate is not the cheapest job if the work takes twice as long.

Experience frequently costs more per day and less per job.

Final Thoughts

How a trade charges decides who carries the risk of the job running long. Agree the model, the scope and how variations will be priced in writing before anyone starts.