Daywork costs revised in latest publication

Anyone who thinks dayworks is a simple concept better get their hands on Definition of Prime Cost of Daywork Carried Out Under a Building Contract – all 16 pages of it.

The document has been produced by the Construction Confederation and RICS and it will supersede the last definition, which was published in 1975. This latest definition will be operative from 1 September.

There will be two options for dealing with the prime cost of labour:

• Percentage addition: Based on the traditional method of pricing labour in dayworks, this allows for a percentage addition to be made for incidental costs, overheads and profit to the prime cost of labour applicable at the time the dayworks is carried out.
• All-inclusive rates: these include the prime cost of labour and an allowance for incidental costs, overheads and profits. The all-inclusive rates are deemed to be fixed for the period of the contract. However, where a fluctuating price contract is used, or where the rates in the contract are to be index-linked, the all-inclusive rates shall be adjusted by a suitable index in accordance with the contract conditions.

The contracts should say which option for dayworks is to be used.