Handling dayworks is an inevitable and time-intensive task for many civil contractors, whether you're managing entire projects on daily rates or handling variation works. Beyond the time required, dayworks come with a significant risk of lost revenue and disputes with clients.
This article outlines key principles and best practices to help you manage dayworks effectively, ensuring smooth operations and capturing all claimable items.
When and Why to Use Dayworks
Dayworks are suited for specific scenarios, including:
• Sub-contracting: In cases where a head contractor assumes responsibility for time and budget, reducing your risk but often yielding lower margins.
• Variation Works: For out-of-scope tasks, it’s often simpler for both parties to agree on dayworks rates.
• Emergency Works: When urgent tasks, such as repairing burst water pipes or road damage, require immediate action without time for detailed quotes.
• Small Jobs: For minor tasks where the effort to prepare a quote isn't justified, such as maintenance jobs under panel agreements.
Preparing for Dayworks
Regardless of your preference for dayworks (lower risk) or priced work (higher margins), it's essential to be prepared. Many priced jobs still require some dayworks, and they can fill gaps between projects.
Proactive preparation can mitigate potential issues. Key steps include:
• Determine Costs and Margins: Understand your costs for dayworks and establish target margins, considering market rates and project specifics.
• Set Up a Recording System: Use either paper-based or digital methods for documenting dayworks.
• Employee Training: Educate your team on the importance of timely, accurate completion and approval of daywork dockets.
• Streamline Internal Workflows:
o Review contracts to ensure all costs are covered in your rates and understand client approval requirements.
o Ensure dockets are consistently returned to the office. Digital systems allow real-time access, while paper dockets should follow a regular submission schedule.
o Track dockets against timesheets and site diaries to capture all claimable items.
o Simplify docket processing and claims preparation using tools like spreadsheets or specialized management software.
Day-to-Day Management of Dayworks
Although simpler than managing priced works, dayworks require meticulous record-keeping by site teams. To streamline daily management:
• Centralize Docket Completion: Have a site supervisor prepare a single docket for the crew, minimizing errors and duplication.
• Coordinate with Clients: Align with client representatives on how and when dockets will be approved—daily, weekly, on-site, or via email.
• Build Habits: Foster the routine of completing dockets immediately after work is done. Regular reminders may be necessary for months to establish this habit.
Converting Dayworks into Revenue
Ultimately, effective dayworks management translates into timely payments. To maximize revenue:
• Keep dockets well-organized.
• Use robust systems to minimize calculation errors.
• Present claims clearly, allowing clients to cross-check with signed dockets.
• Submit claims promptly, ensuring compliance with client requirements.
By following these practices, you can reduce costs, optimize revenue, and position yourself as a reliable and professional partner. While tools like Excel can suffice with diligence, outsourcing dayworks management to experts like Varicon can save time and ensure better organization. Contact us to learn how we can support your dayworks needs.
Website: https://varicon.com.au/mastering-construction-daywork/