Fixed Price vs Day Rate — Which Is Better?
The pricing model you agree changes your risk and your final bill. Here is how to choose.
4 min read · Updated 2026
Key takeaways
- ›Fixed price suits well-defined jobs; day rate suits uncertain or small jobs.
- ›Day rate shifts risk to you; fixed price shifts it to the tradesperson.
- ›Always cap a day-rate job with a maximum and a written scope.
Fixed price
A fixed-price quote means the tradesperson commits to completing the agreed scope for a set amount. They carry the risk if the job takes longer than expected. This suits jobs where the scope is clear — a new bathroom, a small extension, re-roofing a straightforward roof.
The trade-off is that fixed prices include a buffer for the tradesperson's risk, so they can look higher than a day-rate estimate. But they protect you from open-ended costs.
Day rate
A day rate means you pay a set amount per day (or per hour) for the tradesperson's time, plus materials. This suits jobs where the scope is genuinely uncertain — investigating a damp problem, odd repairs, or work where you cannot predict how long it will take.
The risk is entirely yours: if the job drags on, so does the bill. Always agree a written scope, ask for a realistic day estimate, and set a not-to-exceed cap. Ask for a timesheet or daily update.
How to decide
If you can write the job down on one page with a clear finish line, ask for fixed prices. If you genuinely cannot predict the work — for example you need someone to diagnose and then fix — a day rate is reasonable, but document the scope and cap it.
Never accept a "day rate, we will see how it goes" arrangement for a large job with no written cap.
Frequently asked
Can I ask for both?
Yes. Many tradespeople will give a fixed price for the main work and a day rate for any extras or unknowns.
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