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Daywork rates meaning

What does Daywork rates mean?
Daywork rates are the pricing basis used in construction contracts to value extra work that cannot reasonably be priced in the normal way. They are typically applied to instructed variations where there is no comparable item in the bill of quantities, where quantities are uncertain, for small finishing items, or for urgent/emergency works. Two main approaches are used: - Cost-plus: actual labour, plant and materials at cost, plus an agreed percentage or mark-up for overheads, profit and incidental costs. - All-inclusive rates: pre-agreed “daywork” rates stated in the contract/tender (often a schedule) covering labour by trade/grade, plant and materials, with built-in allowances for overheads and profit. Daywork valuation is effectively time-and-materials based and depends on strict record-keeping. Contractors usually must submit contemporaneous daywork sheets/timesheets and material invoices, commonly to be signed or verified by the architect/engineer/contract administrator. Payment is subject to the contract’s notice, instruction and valuation procedures for variations, and any exclusions (for example, inefficiency or standing time). “Daywork rates” is a descriptive construction term rather than a statutory definition. Its operation is governed by the contract conditions (e.g. JCT, NEC, ICE, RIAI, Irish Public Works Contracts), with broadly consistent usage across England & Wales, Scotland, Northern Ireland and Ireland.
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View the related Practice Notes about Daywork rates

PRACTICE NOTES
Construction contracts glossary—D: design and build, delay, defects, payment notices, dispute processes, dutyholders

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z D&B See Design and build beneath. DBO See Design, build and operate beneath. Date for completion/completion date Means the date stated therein in the building contract (typically within the contract particulars/contract data) by which the contractor must finish the works—ie the point by which practical completion is to be achieved (see Practice Note: What is practical completion?). This completion date may change over the course of the project, for instance where the contractor receives an extension of time. Should the works not be completed by the completion date, the contractor is liable to the employer for liquidated damages (where the contract so provides) or, failing that, general damages for delay in completion (arising from breach of contract thereunder). Date for possession The date set out in the building contract on which the employer gives...

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