Fixed-price vs dayworks — the contract type matters as much as the contractor. Here's the real-world breakdown for Sydney demolition.
Most homeowners want a fixed price and most builders prefer dayworks. They're not the same product. Here's when each one wins.
Fixed-Price Demolition
One number. We carry the risk. If asbestos surprises us, tip fees jump, or rain delays us, we wear it. The trade-off is that fixed prices carry a built-in contingency — typically 10–18% — which means you'll usually pay more than the bare cost on a clean job, but never more than the quoted total.
Dayworks (Schedule of Rates) Demolition
You pay for the actual machine hours, truck movements and tip dockets. You see the bill grow in real time. Cheaper on a clean predictable job, more expensive when surprises hit. You carry the risk.
When Fixed-Price Wins
- Residential knockdown-rebuilds
- Single-house demolitions
- Owner-occupier jobs without project management capacity
- Anything with asbestos uncertainty
- You want one number for the bank, builder or partner
When Dayworks Wins
- Industrial or warehouse jobs where the scope is well-defined and supervised daily
- Builders doing repeat work — they price risk separately
- Multi-stage demolitions with scope you're still scoping out
- Site clearing where volume is unknown
The Hybrid (Most Sydney Builders' Preference)
Fixed price for the main demolition + dayworks for variations: extra rock, hidden asbestos, additional excavation. Builders carry less risk premium, contractor doesn't have to pad. Most of our larger commercial work runs this way.
How to Compare Fixed-Price vs Dayworks Apples-to-Apples
- Estimate total truck loads from the structure size
- Add asbestos contingency at $60–$90/m² of suspected material
- Add 8% project management overhead
- Compare against the fixed quote
Frequently Asked Questions
Why do builders prefer dayworks?
They've got the site supervision in place anyway and they don't want to pay your contingency.
Why do homeowners prefer fixed price?
One number. No surprises. Bankable for finance.
Can the same job be quoted both ways?
Yes — ask. We're happy to quote both for any job over $50,000.
Related Reading
- Demolition Cost Sydney 2026 — Complete Price Guide
- What's Included in a Sydney Demolition Quote
- Demolition Permit Cost NSW
Direct Demolition is a licensed Sydney demolition contractor (NSW Demolition Licence AD214611). Contact us or call 0451 117 275 for a free site inspection and fixed written quote.