Fixed labour rates

Discussion in 'Tradespeople' started by DariusCool, Jun 14, 2019 at 9:55 PM.

  1. DariusCool

    DariusCool UKBF Regular Free Member

    117 6

    I am looking for people's experiences working with fixed labour rates.

    A company has contacted us requesting we do repairs to items at a fixed price per repair rather than per hour.

    I see some pro and cons but a wider view would be appreciated
    Posted: Jun 14, 2019 at 9:55 PM By: DariusCool Member since: Mar 20, 2013
  2. Darren_Ssc

    Darren_Ssc UKBF Regular Free Member

    281 50
    Scheduled rates used to be quite common but less so nowadays. Large organisations tend to opt for partnering arrangements instead (also with pros and cons).

    Make sure your rates are in line with those currently published and engage a QS if you are able.

    The main thing you have to be careful of is to avoid the temptation to start off being too competitive with a view to raising rates at a later date. More often than not, that never happens.

    The way some people work it is to be offering the best rate but relying on contract variations along the way ('extras' in simple terms). This can be quite lucrative when working with naive clients (like many local councils) or where you have a relationship with senior management (being 'bent' in other words).

    In short, the same pros and cons as any other procurement method but get professional advice if it's going to be a long-term arrangement. Not just with rates but ensuring you're using the right contract.

    **Long time since I was in the game btw so my views may be out of date.
    Posted: Jun 15, 2019 at 7:11 AM By: Darren_Ssc Member since: Mar 1, 2019