Overview

In the complex world of construction contracts and project management, daywork stands as a vital mechanism for handling unforeseen work and variations. Despite its importance, it’s frequently managed through outdated manual processes that create inefficiencies, delays, and potential disputes.

At Dayworkbook, we’ve built our technology around deep industry knowledge and industry best practice to revolutionise how daywork is managed. This article explores the fundamentals of daywork, industry best practices set by RICS (Royal Institution of Chartered Surveyors), and how our digital solution addresses the challenges of traditional daywork management.

What is Daywork?

According to RICS guidance documents, daywork is defined as:

“The method of valuing work on the basis of the time spent by the contractor’s team, the materials used and the plant employed” (NRM 2)

Further elaborated in RICS Cost Reporting (1st edition) as:

“The monetary allowances made for the costs of labour, plant and materials, against which percentage uplifts are priced against the base rates of labour and prime cost of materials and plant. These allowances are for work whose quantity and specification are unknown and whose instruction is likely to be on an ad hoc basis where the valuing of the work by reference to contract rates would be inappropriate.”

Essentially, daywork provides a mechanism for contractors to be compensated fairly for additional or varied work that wasn’t explicitly included in the original contract or where traditional measurement and quoting would be impractical.

When Should Daywork Be Used?

RICS guidance specifically recommends daywork for:

1. Minor variations where work content or duration is uncertain
2. Repairs where extent isn’t fully known at commencement
3. Investigative work (such as locating services)
4. Standing time due to client-caused delays
5. Work that cannot be reasonably measured or valued by rates

The Challenge: Traditional Daywork Processes

Historically, daywork has been managed through paper-based systems with significant limitations:

• Handwritten daywork sheets prone to errors and illegibility
• Delayed client approvals due to physical signature requirements
• Lost documentation and incomplete records
• Difficulty compiling daywork information for billing purposes
• Disputes arising from incomplete documentation or late submissions
• Inconsistent application of agreed rates and percentages

RICS-Aligned Best Practices for Daywork

RICS “Definition of Prime Cost” documents establish clear principles for proper daywork management:

Prime Cost Components

Proper daywork valuation requires accurate recording of:

• Labour costs: Wages, time, positions, and appropriate uplifts
• Materials and goods: Quantities, descriptions, and costs
• Plant costs: Type, duration, and rates
• Overhead and profit adjustments: Appropriate percentage additions

Labour Cost Calculation Methods

RICS specifies two primary options for calculating labour costs:

• Option A: Percentage Addition Method – Base labour costs plus percentage additions for incidentals, overheads, and profit
• Option B (Most Common): All-Inclusive Rates Method – Fixed rates that include labour costs, incidentals, overheads, and profit

Documentation Requirements

RICS emphasises rigorous documentation including:

• Daily recording of resources used
• Detailed descriptions of work performed
• Client representative verification and approval
• Alignment with contracted terms
• Timely submission and processing

Digital Transformation of Daywork Management

Dayworkbook has been purposefully designed to address the challenges of traditional daywork processes while maintaining alignment with RICS best practices and guidance.

Our platform digitises the entire daywork process with four key stages:

Creating Comprehensive Daywork Sheets

• Digital and voice-to-text entry of work descriptions
• Recording of labour names, positions, and hours
• Plant and equipment use by type and duration
• Materials documentation
• Photo evidence attachment capabilities
• Digital signatures

Seamless Client Communication

• Instant electronic transmission of daywork sheets
• Real-time notifications and status tracking
• Secure access for all stakeholders

Digital Client Verification

• Electronic approval processes
• Audit trails of all actions
• Timestamp verification

Automated Reporting

• Compilation of multiple sheets into summary reports
• Compilation of billing reports including rates, ready for invoicing
• Dashboard usage summaries

All-Inclusive Labour Rate Cost Calculations

Dayworkbook specifically implements the RICS Option B methodology for labour cost calculations, providing for:

• All-inclusive rates that incorporate labour costs, incidentals, overheads, and profit
• Fixed rates for the contract period (with provisions for adjustment in fluctuating price contracts)
• Simplified calculation and verification processes

Benefits of Digitising Daywork with Dayworkbook

For Contractors

• Eliminated paperwork and administrative burden
• Faster client approvals and payment processing
• Complete audit trails for dispute avoidance
• Consistent application of agreed rates
• Real-time visibility of daywork status

For Clients

• Enhanced transparency into daywork activities
• Simplified verification with photo evidence
• Reduced administrative overhead
• Improved cost control and forecasting
• Elimination of surprise costs

The Future of Daywork Management

The construction industry continues to embrace digital transformation, and daywork management represents a critical area where technology can drive significant efficiency improvements while ensuring compliance with industry standards.

By aligning with industry best practice and leveraging modern digital tools, Dayworkbook transforms a traditionally cumbersome process into a streamlined, transparent, and efficient system that benefits all stakeholders.

For subcontractors and clients alike, the shift from paper-based daywork management to a digitised solution represents not just an operational improvement but a strategic advantage in project delivery, cost control, and stakeholder satisfaction.

Dayworkbook is a construction technology solution that digitises the traditional process of completing and managing daywork. Our platform is built on deep industry knowledge and strict adherence to best practice industry standards to provide a comprehensive solution for daywork management.