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Payment

Getting paid is always difficult and stressful. Contact us in the first instance and as your trusted intuitive business adviser we will give you an independent, neutral and objective assessment of your position and a strategy for moving forward.

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The Construction Act sets out the legal framework for payment and dispute resolution in construction contracts. Understanding its provisions is essential to ensure compliance and protect your rights. These notes provide practical guidance on key requirements, including payment terms, notices, and adjudication processes, helping you manage contractual obligations effectively.

The Housing Grants Construction and Regeneration Act 1996 as amended by The Local Democracy Development and Construction Act 2009.

The Payment Provisions of The ‘Construction Act’ relayed in a practical format.

This important law governs all contracts that are defined as "construction operations" and legislates industry practice in respect to two issues, namely: Adjudication and Payment. The original Act was amended by the provisions of Part 8 of the Local Democracy, Economic Development and Construction Act 2009, which now apply  to all regulated contracts executed after the 1st October 2011. ‘The Act’ affects the majority of construction contracts irrespective of whether they are executed orally, partially orally or totally in writing.

Daywork rates are the basic cost to employers of hiring specific electrical workers and then using those workers on unplanned works, where the contract provides that cost recovery can be initiated by the recording of the unplanned works resources on a resource elemental basis.

ECA provides the Prime Cost Electrical Rates both, London and Nationally for specified workers. Other worker rates may be available, upon request. JCT contracts, in respects to Daywork, defer to The BESA and their Mechanical rates are available here or via their website. 

Daywork rates applicable from 6th April 2025.

The RICS/ECA Prime Cost Of Daywork Rates 

What are Daywork rates? 

Daywork rates are the basic cost to employers of hiring specific electrical workers and then using those workers on unplanned works, where the contract provides that cost recovery can be initiated by the recording of the unplanned works resources on a resource elemental basis.

ECA provides the Prime Cost Electrical Rates both, London and Nationally for specified workers. Other worker rates may be available, upon request. JCT contracts, in respects to Daywork, defer to The BESA and their Mechanical rates are available here or via their website. 

Joint Publication

The ‘Prime Cost of Daywork’ components are agreed between the ECA and the Royal Institution of Chartered Surveyors (RICS), three times annually. The main changes occur when wages are reviewed but changes also occur when, for instance, NI rates or thresholds change.

Employing Daywork Rates

Daywork is one way to value instructed variations. The time spent on the variation is accurately recorded on a Daywork Voucher, the labour resource is then valued based on the applicable Prime Cost rate. The Prime Cost base rate is then uplifted by a percentage rate, one calculated to provide reimbursement of other ‘prime costs’ and a return for overheads and profit. This uplift is agreed at the time the contract is made and is intended to recover sums the business may also incur in its role as an employer. Potential components of what these other costs may be, are published by the RICS in their guide to ‘The Prime Cost of Daywork’ but the Association can advise if there is any doubt.

Labour Rate Calculation

Members often request the ‘Transport Provided’ rates in the misguided belief these are Daywork. It is possible to use the JIB rates to produce rates on a similar basis but only the Own Transport Rates (for the trade classifications as indicated) are Daywork – as approved by the RICS.

The RICS / ECA Daywork Rate, Sheet 1 is agreed three times annually: January, April and September, the latest rates for 2025 are available below for download.

Apprentices & Trainees

Methods of funding Apprentices and Trainees have recently undergone a major change. Costs now relate to the businesses size and their own agreements with their own training providers. The Association may have some ‘common’ illustrative examples or the ‘daywork’ sheet calculation sheets can be relayed to members who are prepared to modify them for their own purposes.

Other rates, Sheets 3, 5A and 5B, calculated on a similar basis provided below. 

  • Sheet 3 - Electrical Rates (Own Transport) 'Trainees' National and London
  • Sheet 5A - Electrical Rates (Transport Provided) 'PT1'  National and London

Members wishing to calculate an ‘all-in’ Daywork estimating rate, using the above, consideration must be given to potential on-costs, costs not included in these schedules. (You can download a 'Costs checklist for estimating genuine prime cost' below).

Mechanical Trades Agreement Rates

The RICS and ECA agree rates for Mechanical Trades when employed under the respective JIB Agreement. Downloads available below.

  • Sheet 2 - RICS  Daywork Mechanical/Technician/(Advanced) Craftsperson
  • Sheet 4 - Mech Rates (Own Transport) 'Trainees' National and London

BESA Daywork Rates

The BESA definition of the prime cost daywork is available - here.

Guidance notes and templates developed by ECA experts

This section consolidates key guidance on payment processes, notices, and retention practices to help you maintain compliance and avoid disputes.

ECA CEO Steve Bratt and Director of Legal & Business Rob Driscoll sit down to discuss the Government's late payments consultation and ECA's response.


Alice Hartney, Legal and Commercial Advisor at ECA, outlines three key guidance notes and templates for ECA Members to help with retention matters, protecting your cash flow and avoid disputes.