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Which daywork rates apply: RICS or CECA?

The ones your subcontract names: building work usually uses the RICS prime cost definitions, and civil engineering work the CECA schedules.

Updated: . By Jack Butler-Kettle, Construction Claims Consultant.

The answer

Neither publishes one rate you can simply charge. RICS publishes definitions of the prime cost of daywork, which say what goes into the cost of labour, materials and plant. There are separate RICS definitions for building work, electrical work and heating and ventilating work. Labour starts from the wage rates set for the trade, plus the employment costs the definition lists. RICS also publishes a schedule of plant charges for use with the building definition. Your subcontract then adds the percentages you tendered for overheads and profit on each part. CECA, the Civil Engineering Contractors Association, publishes its own Schedules of Dayworks for civil engineering work, with their own percentage additions. So the rate on a daywork sheet is not a figure you pick on the day. It is prime cost, worked out the way the named document says, plus the agreed percentages. Three things go wrong most. The subcontract names no schedule and no percentages, so every sheet turns into an argument. The sheet uses an old edition or the wrong trade's definition. Or your main contractor applies its own lower percentages. So find the daywork clause and its percentages before the first sheet goes in, and agree them in writing if they are missing. Our Unpaid Variation Prevention service sets the daywork terms up before the work starts, and our Variation Claim service revalues dayworks already cut back.

Example

Illustrative example. The scenario and figures are invented.

The facts

A groundworks subcontractor's daywork clause names the RICS definition for building work, with 110% on labour, 15% on materials and 10% on plant. The main contractor's valuation applies its own 60% on labour.

What happens

  1. One day's sheet shows prime costs of £400 for labour, £300 for materials and £250 for plant.
  2. With the subcontract percentages added, the day is worth £1,460: £840 of labour, £345 of materials and £275 of plant.
  3. At 60% on labour, the main contractor's figure for the same day is £1,260.
  4. The subcontractor answers with the daywork clause and the percentages it tendered.

One day's daywork

ItemPrime costWith the percentage
Labour, 110%£400£840
Materials, 15%£300£345
Plant, 10%£250£275
Total£950£1,460

The outcome

The day is agreed at £1,460. Across the 12 similar days on the sheets, that recovers £2,400 the lower labour percentage would have cut.

To have your daywork terms agreed before the first sheet goes in, see our Unpaid Variation Prevention service; for dayworks already cut back, see Variation Claim.