Fixed Price vs Day Rate: Which Is Better in 2026?
It's one of the most debated questions in the trades — fixed price or day rate? The honest answer is neither is universally better. What matters is knowing when to use each one and how to protect yourself either way.
What Is a Day Rate?
A day rate is a set amount you charge for each day you work, regardless of exactly how long the job takes within that day. Most UK tradespeople charge somewhere between £200 and £450 per day in 2026, depending on trade, experience, and location.
Some tradespeople also work on an hourly rate, which works on the same principle but gives more flexibility for shorter jobs and call-outs.
What Is a Fixed Price?
A fixed price quote means you agree a total cost for the entire job upfront — materials and labour included. The customer knows exactly what they're paying before work starts. If the job takes longer than expected, that's your problem. If you finish ahead of schedule, that's your reward.
Day Rate — Pros and Cons
Pros
- Simple to explain and easy to quote
- Protects you if the job is more complicated than expected
- Works well when the full scope isn't clear upfront
- Good for jobs with unknown variables — old properties, hidden pipework, structural surprises
Cons
- Some customers feel uneasy not knowing the final cost
- Can look more expensive on paper than a fixed-price competitor
- Harder to win larger planned jobs where customers get multiple quotes
- Customers can feel like they're watching the clock
Fixed Price — Pros and Cons
Pros
- Customers love the certainty — no bill shock at the end
- Stronger position when competing for larger jobs
- Rewards efficiency — finish faster and your hourly rate goes up
- Looks more professional in a written quote
Cons
- You carry the risk if the job overruns
- Dangerous on jobs with unknowns — one surprise can wipe out your margin
- Requires accurate estimating, which takes experience
- Scope creep becomes a problem if the customer adds to the job mid-way
When to Use a Day Rate
A day rate makes sense when:
- The scope isn't fully clear — repairs, investigations, or jobs in older properties where you don't know what you'll find
- The customer keeps changing their mind — a day rate protects you when the brief is moving
- It's a small call-out — for anything under a day, an hourly rate is cleaner
- Materials are being supplied by the customer — you're selling your time, not a complete package
When to Use a Fixed Price
A fixed price works best when:
- You've fully surveyed the job and know exactly what's involved
- You're competing against other quotes — fixed pricing removes the uncertainty that costs you work
- It's a straightforward, repeatable job — fitting a bathroom suite, rewiring a room, installing a kitchen
- The customer is planning ahead — homeowners budgeting for a renovation want a number they can work with
The Hybrid Approach Most Experienced Tradespeople Use
Use both — depending on the job
- Day rate for investigative, repair, or reactive work
- Fixed price for planned installations and larger projects
- Hourly rate for small call-outs and minor repairs
This gives you the flexibility to protect yourself on unpredictable jobs while remaining competitive on the bigger planned work.
How to Protect Yourself on Fixed Price Jobs
If you're quoting fixed prices, these rules will save you a lot of headaches:
- Always survey before you quote — never give a fixed price based on a description over the phone. See the job yourself.
- State what's included — and what isn't — "Supply and fit one consumer unit" is a fixed price. "All electrical work" is not.
- Build in a contingency — add 10–20% to your time estimate to cover minor surprises. Bake it into your price, don't give it away.
- Have a variation clause — make it clear that if unforeseen issues arise (hidden damage, asbestos, structural problems), this will be quoted separately before work continues.
- Get it in writing — whether it's a day rate or fixed price, always send a written quote the customer has confirmed. It protects both of you.
What Do Customers Actually Prefer?
Most residential customers prefer a fixed price — they want to know what they're committing to before they say yes. Commercial clients and property developers tend to be more comfortable with day rates, particularly on larger or longer-running projects.
If you're targeting homeowners, fixed pricing with a clear scope will generally win you more work. If you're doing reactive maintenance or working with contractors, a day rate is often expected.
Jobber lets you build branded quotes in minutes from your phone — with saved labour rates, material line items, and automatic follow-up reminders. Works for day rate jobs, fixed price jobs, and everything in between.
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