How to Set Your Day Rate as a Builder in the UK

Builders and general contractors often have the trickiest time setting rates. Electricians and plumbers do relatively defined tasks. Builders take on everything from groundworks to roofing to second fix — and the range of skills, risk and effort varies enormously between jobs.

Here's how to work out your number properly.

Start with what you need, not what others charge

The same calculation applies regardless of trade. Work backwards from your personal costs:

What do you need to take home each month to cover rent or mortgage, bills, food, vehicle, and have something left over?

Let's use £3,000 net per month. That's £36,000 take-home per year.

To take home £36,000, you need gross profits of roughly £46,000–£50,000 depending on your expenses and what you can legitimately claim.

Now add your annual business costs: Van — insurance, tax, fuel, maintenance: £6,000–£10,000 Tools and plant — general kit, small plant, consumables: £3,000–£6,000 Scaffolding and access (if you arrange this): variable, but factor in the cost of any jobs where you provide it Insurance — public liability, tools, van: £1,000–£2,500 Phone and broadband: £600–£1,200 Accountant: £600–£1,500 PPE and work clothing: £400–£800 Training and any CSCS card renewals: £200–£500

For a well-equipped sole trader builder, costs sit between £12,000–£22,000 per year. Use £15,000 as a working figure.

How many billable days? Builders typically have more non-billable time than specialists because jobs are more varied — more time quoting, more site visits, more problem-solving that doesn't go on an invoice.

From 260 working days: 28 days holiday 8 bank holidays 5-10 sick days 15-20 days of non-billable time — quoting, pricing, materials runs, callbacks 5-10 days of gaps between jobs

That leaves around 185-200 billable days. Use 190.

Putting it together

£50,000 target gross profit + £15,000 costs = £65,000 minimum turnover Divided by 190 billable days = £342 per day minimum

That's your floor before any profit margin. Round up to £370-£400 and you've got a defensible number with some room.

What builders are charging in 2026

London and South East: £400–£600/day Midlands: £280–£420/day North West and Yorkshire: £260–£400/day Scotland and Wales: £250–£380/day

Specialist skills carry premiums — structural work, heritage buildings, basement conversions, oak frame. If you've got a specialism, price it accordingly.

Fixed price vs day rate for builders

This question matters more for builders than most trades because jobs are larger and scope creep is a real risk.

Day rate suits: groundworks where ground conditions are unknown, renovation work where what's behind the walls is uncertain, commercial clients who want visibility of time and cost.

Fixed price suits: defined new-build plots, clearly scoped extensions, kitchen or bathroom fits where the specification is fixed and agreed.

For anything where the scope could change — and in building work, it usually can — protect yourself with a clear written scope of works, a provisional sums section for work that's uncertain, and a change order process for anything additional.

Materials — never include them in your day rate

Materials are a pass-through cost. You buy them at trade, charge them at cost (or cost plus a small handling margin of 5-10%), and list them separately on every invoice. Your day rate covers your time, expertise and overheads. It does not subsidise materials.

On larger jobs, raise a materials invoice separately or include materials as a discrete line item so the customer can see exactly what they're paying for.

When to review your rates At minimum, once a year. Put it up if: You're fully booked more than four weeks out Material costs and fuel have increased your overheads You've taken on additional qualifications or plant A year has passed and you haven't increased

Most customers expect rates to go up. They don't expect them to stay the same for three years and then jump 30%. Small, regular increases are easier for everyone.