This is normally used for maintenance work or when scope of work is well-defined and accurate scaffolding estimates can be determined.
Rates can be at an hourly, daily, weekly or monthly basis. This method may give rise to an unmotivated labour force and causes delay to a job. We normally use a Bonus System as performance monitor in conjunction with day rate.
This is a viable solution in situation where scope of work is difficult to define and lumpsum contract is impossible. It is an alternative to day rate contract and acceptable when there is continuity of work.