Dayworks 'Definition of Prime Cost of Daywork Carried Out Under A Building Contract' was revised.

After much consultation between the oyal !nstitution of Chartered "urveyors# the Building Cost !nformation "ervice and the Construction Confederation# a new definition$ was %ublished in &une '(()# and su%erseded the %revious edition from * "e%tember '((). +he two o%tions are, O%tion 'A'- Percentage Addition# is based u%on the traditional method of %ricing labour in dayworks# and allows for a %ercentage addition to be made for incidental costs# overheads and %rofit# to the %rime cost of labour a%%licable at the time the dayworks is carried out. O%tion 'B' - All !nclusive ates# includes not only the %rime cost of labour but also an allowance for incidental costs# overheads and %rofit. +he all-inclusive rates are deemed to be fi.ed for the %eriod of the contract. /owever# where a fluctuating %rice contract is used# or where the rates in the contract are to be inde.-linked# the allinclusive rates shall be ad0usted by a suitable inde. in accordance with the contract conditions. 1hoever %uts the contract documents together can decide which of the above methods is the most a%%ro%riate. Consideration should be given# for e.am%le# to length of contract# whether the contract is fi.ed# firm or fluctuating %rice# or whether the costs are to be inde. linked. Using O%tion 'B' - All !nclusive ates# gives the client %rice certainty in terms of the labour rate to be used in any daywork during the contract# but there is the %otential that the rate will be higher# as the contractor is likely to build in a contingency to cover any unknown increases in labour rates that may occur during the contract %eriod. !f O%tion 'B' is used and the rates in the contract are to be inde.ed linked# BC!" %ublish a number of cost indices that may be suitable in the circumstances.