Subcontractor scheduling: rates, day-work and price-work explained
Day-work, price-work, fixed-price, T&M — what each one means, when to use it, and how to schedule it without losing margin.
Subcontractor scheduling: rates, day-work and price-work explained
The rate you book a subcontractor on changes how you schedule them, how you measure them, and how much you pay at the end. Here is the short version.
Day-work (T&M)
The subcontractor charges for hours on site, plus materials at cost or with a markup.
Use it when: the scope is unclear, the work is reactive, or you genuinely cannot estimate it.
Scheduling implications: you need tight check-in / check-out times. SiteLive day check-ins exist for exactly this — arrival time, leave time, work summary, all timestamped.
Risk: if nobody is watching the clock, day-work is where margin goes to die.
Price-work (measured)
A fixed rate per unit — per metre, per square metre, per fitting.
Use it when: the unit is well-defined and repeatable.
Scheduling implications: you only care about output, not hours. Book the visit, measure the work, sign it off.
Fixed-price (lump sum)
One price for the whole package.
Use it when: scope is locked and drawings are stable.
Scheduling implications: programme certainty is everything. Late access cascades into delay claims.
Which one to pick
If you can describe the work in one sentence and a number, price-work or fixed-price. If you cannot, day-work — but commit to logging it properly.
The scheduling tool you use should support all three without forcing you to pick one model.
