Day Rates for Builders: How to Work Out What to Charge

‍‌​‌​‌​​‌​​​‌‌‌‌‌‌‌​‌​​​‌‌​‌​‌​​‌‍SiteKiln gives you plain-English information, not legal advice. If you need advice specific to your situation, talk to a qualified accountant or solicitor.

A quote isn't just "how much for the job". It's the thing a judge, Trading Standards or a stroppy client will wave at you if there's a row. Get it right, and half your future grief disappears.

1. The law in the background (plain English)

For domestic jobs, your quote usually turns into a consumer contract for services. The Consumer Rights Act 2015 quietly adds terms whether you write them down or not:

• You must do the work with reasonable care and skill (basically, competent tradesman standard).
• If you don't fix a firm price, the law says it must be done for a reasonable price.
• If you don't fix dates, it must be done within a reasonable time.
• Any key information you give about the service or price that the customer relies on becomes binding, like a contract term.

So if your quote is vague on price, time and scope, the law fills the gaps -- usually in the customer's favour.

2. What a "protective" quote has to do

Your quote needs to:

• Nail down what's included and what isn't.
• Make clear how you'll charge for extras and price changes.
• Set payment terms that keep your cashflow alive.
• Manage time and delays, so weather or client faffing doesn't become "your fault".
• Line up with your terms and conditions (see 8.6 and 8.7) instead of fighting them.

Think of the quote as the front page of the contract: it tells the story in simple terms; the T&Cs do the heavy legal lifting.

3. The bare minimum your quote should include

For domestic work, every written quote should, as standard, show:

• Your business name, address and contact details, and company number if you're Ltd (and VAT number if registered).
• The client's name and site address.
• The date of the quote and how long it's valid for (e.g. "30 days").
• A clear description of the work -- what you're actually doing, room by room or trade by trade.
• A breakdown of price -- at least by sections (e.g. groundworks, shell, roof, finishes).
• Whether the price includes or excludes VAT, and the total including VAT where applicable.
• Provisional sums/PC sums and allowances (kitchen, bathroom, tiles etc.) clearly labelled.
• Payment terms -- deposit, stage payments, final payment, when each is due.
• An expected start date and duration, or a clear basis (e.g. "approx. 6 weeks from agreed start date, weather permitting").
• A line saying the quote is subject to your attached terms and conditions.

If any of that is missing, you're leaving space for arguments later.

4. Scope, exclusions and assumptions (the stuff that saves you)

This is where most builders either protect themselves or hang themselves.

In your quote, include three separate bits:

Scope of works

Bullet what is included in plain English -- demo, waste removal, structural works, first fix, second fix, making good, decoration etc.

Exclusions

List what you are not allowing for:

• Structural design/engineering, planning applications, building control fees.
• Asbestos removal, rot, existing defects.
• Decorating, flooring, landscaping, unless you're definitely doing them.

This list is what you point at when a client says "I thought that was included".

Assumptions

Things you're assuming to price the job:

• Normal working hours, clear access, parking available.
• Adequate power and water on site.
• No major issues behind existing finishes.

If something matters to the price or programme, write it as an assumption or exclusion. Do not rely on "that's obvious".

5. Price type and how you'll deal with changes

Be clear about how the price works:

• Fixed price: "This is a fixed price for the scope described."
• Day rate: "Work outside this scope will be charged at £X per person per day plus materials."
• Mixed: fixed for main works, day rate for extras/investigation work.

Then add a short variations clause in the quote (which you also mirror in your T&Cs):

• No extras without written agreement (even an email/WhatsApp is fine if it's clear).
• Variations priced and agreed before the extra work is done wherever possible.
• PC sums and allowances -- if the client chooses higher-spec items, they pay the difference.

This turns "while you're here..." from a freebie into paid work you can stand over.

6. Time, delays and materials price rises

The law says that if you don't agree time, it has to be done in a "reasonable" time, which is vague. Help yourself out:

• Put a realistic duration on the quote (e.g. "We estimate 4-5 weeks on site once work starts").
• State that the programme can move if:
  • There are variations,
  • There's bad weather,
  • The client delays access or decisions.

On materials price rises (linked to 8.14):

• Add a line like: "This quote is based on current material prices. If supplier prices increase by more than X% before we order, we will agree a price adjustment with you before proceeding."
• Put how long the quote is valid (e.g. 30 days) and that prices may be reviewed after that.

You can't dodge all risk, but this gives you something to point at if the merchants whack their prices up.

7. Payment terms that actually protect you

Protective quotes don't just say "£25,000 for the job". They spell out how and when it's paid:

• A sensible deposit (especially for custom materials).
• Stage payments tied to milestones (e.g. after foundations, after watertight, after first fix).
• A final payment on completion/snagging with a clear time limit (e.g. due within 7 days of final invoice).

Also worth adding:

• What happens if the client doesn't pay on time (right to stop work, statutory interest, etc., backed by your T&Cs).
• That materials may remain your property until paid for (again, backed up in T&Cs).

The goal: you're never two months' labour and materials in with no money collected.

8. Simple quote structure you can copy

You can set up a standard layout like this (then tweak per job):

1. Header -- your details, client details, job address, date, reference.
2. Overview -- short description of the job.
3. Scope of works -- bullet list by area/trade.
4. Price and breakdown -- sections, PC sums, VAT clearly shown.
5. Programme -- start, duration, things that could affect it.
6. Payment terms -- deposit, stages, final balance, due dates.
7. Assumptions and exclusions -- clear bullets.
8. Variations and extras -- how they'll be agreed and charged.
9. Validity -- how long the quote stands and what happens after that.
10. Link to T&Cs -- "This quote is subject to the attached Terms and Conditions."

Once you've got that shell, you just fill in the blanks instead of starting from nothing every time.

9. Common mistakes

• One-line lump sums with no breakdown -- client fills the gaps with what they hoped was included.
• No written exclusions, so you end up doing extras for free "because that's what we thought we were paying for".
• Vague timeframes ("we'll get it done in the summer") and nothing about delays, so you get blamed for everything.
• No clear process for variations -- leads to "you never said it would cost more" fights.
• Quote and T&Cs contradicting each other (e.g. payment terms differ) -- courts often side with the clearer, more specific document.

Most of this is fixed by taking an extra 10 minutes when you write the quote, not by paying a lawyer later.

10. Who to contact

• Consumer Rights Act 2015 -- services -- sections 49-52 on reasonable care, price and time: legislation.gov.uk/ukpga/2015/15/part/1/chapter/4 (free)
• Trading Standards / local council consumer advice -- plain-English summaries of what consumers can expect from builders. Find your local office: gov.uk/find-local-trading-standards-office (free)
• Federation of Master Builders (FMB) -- template contracts and quote guidance for members: fmb.org.uk
• CITB -- business skills guides for construction: citb.co.uk (free)

11. Related guides on this site

• 8.6 Terms and conditions template -- domestic work
• 8.7 Terms and conditions template -- commercial subcontracting
• 8.13 Pricing work -- day rate vs fixed price vs cost-plus
• 8.14 Dealing with price increases on materials mid-job
• 9.12 Deposits -- how much you can take and what protects you
• 9.13 Scope creep -- client keeps adding work and expects it for free
• S16 Writing your first quote -- what to include so you don't get burned

12. Sources and legislation

• Consumer Rights Act 2015 -- Part 1, Chapter 4 (sections 49-52) covering services: reasonable care and skill, reasonable price, reasonable time. legislation.gov.uk/ukpga/2015/15
• Supply of Goods and Services Act 1982 -- sections 13-15 (implied terms for services, still relevant for some B2B contracts). legislation.gov.uk/ukpga/1982/29
• Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 -- pre-contract information requirements for domestic work. legislation.gov.uk/uksi/2013/3134
• Late Payment of Commercial Debts (Interest) Act 1998 -- statutory interest on late B2B payments. legislation.gov.uk/ukpga/1998/20

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