Daily rate versus fixed price?
This is one of those interesting things where the client rarely feels that they get value for money, with either of these payment methods. The slippage and inefficiency of work forces in some cases has been astounding. When I apply my professional standards to the construction industry and set targets and clear expectations that sometimes aren’t met, the response I get is ‘Well, that’s the construction industry!’
‘Well it shouldn’t be! That could explain why some people in the industry are in a pickle!’
One example is when one firm gave us a fixed price. We understood that we were getting the experienced experts from the company to complete the work. To save money, the firm employed cheap, young, inexperienced workers who made errors that had to then be rectified. I’m not paying for that. I also refuse to pay for sub substandard work and I also don’t accept excuses for inferior quality. Does that sound like I’m unfair?
Anyway, the other thing that makes the hackles rise on the back of my neck, is if workers on a daily rate, don’t have an efficient system in place to complete their task, stand around chatting to other trades (on a price), use their mobile phone for social reasons and who smoke. The loss in productivity is around 3 hours a day. When I saw this happening on site with one of the labourers, I had difficulty keeping an even tone in my voice when I spoke to him. He won’t be doing this again, though!