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Day Rate or Fixed Price?

Written by James Walker · Last reviewed 16 August 2026

James Walker has 2 degrees in construction (BSc (Hons) Building Surveying · MSc Environmental Design of Buildings) and an extensive background in issue resolution, resolving over £4 billion of consumer issues.

The short answer

  • Fixed prices win more domestic work. Customers want certainty.
  • Day rates protect you where the scope genuinely cannot be predicted.
  • Open-ended hourly work makes customers anxious, and anxious customers watch the clock.
  • Capping a day rate gives you protection and them certainty.
  • Builders and subcontract work often run on day rates; homeowners rarely prefer them.
On this page

What customers actually want

Certainty, almost always.

A homeowner hearing "it's £300 a day and it'll take three or four days" hears a number between £900 and £1,200 and assumes the higher one. A fixed £1,100 wins that comparison even though it is more than the low end.

Open-ended time also changes the relationship. Customers on a day rate watch when you arrive, notice when you take lunch, and interpret a slow afternoon as being charged for. Nobody enjoys that on either side.

When a day rate is right

Genuinely unpredictable work. Chasing an intermittent fault, repairs behind a wall, remedial work on someone else's mess.

Small jobs where pricing takes longer than doing.

Subcontract work for builders, where it is the norm.

Customer-directed work where they keep changing what they want, a fixed price for a moving target is a trap.

Capping the day rate

Where you need a day rate but the customer needs certainty, cap it: "£300 a day, I expect three days, and I'll come back to you before it goes past four."

You keep the protection. They get a ceiling. It converts an open-ended commitment into a bounded one, which is usually all they needed.

Fixed price properly

If you fix a price, fix the scope with it. A fixed price against a vague scope is how trades lose money, the customer's understanding of what was included expands to fill the ambiguity.

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