Direct labour tasks

Direct Labour Overview:

• Involves hiring individual tradesmen yourself, offering potential cost savings and greater control over the project.
• Requires a full-time commitment, which may result in loss of earnings.
• Projects typically take longer to complete compared to hiring a main contractor.

Financial Considerations:In Northern Ireland (NI), new builds are zero VAT rated, but you must keep every receipt.

In the Republic of Ireland (ROI), you only benefit from the reduced 13.5% VAT rate if a builder purchases materials; otherwise, you pay the full 23%.

Tradesmen charge 13.5% VAT on their labor and materials if hired directly

Avoid cash-in-hand payments, as there is no recourse for problems.

 

Cash Flow:

• Managing cash flow can be easier with a builder, who follows a payment schedule.
• With direct labor, tradesmen typically expect immediate payment upon job completion, which may not align with stage payments.

Project Management Tasks:

• Start early in finding reliable, preferably local, tradesmen.
• Expect to spend time managing and chasing subcontractors to stay on schedule.
• Check and document each subcontractor's insurance.
• Ensure secure storage space and break facilities on-site.
• Handle all health and safety duties, including managing site facilities.
• Open an account with a local builder’s merchant for materials and compare prices from multiple suppliers.
• Manage deliveries, ensuring timely arrival and proper storage of materials.
• Keep detailed records of expenses, receipts, and certifications.
• Implement waste management strategies and maximize site efficiencies.
• Invest in DIY tools and secure them properly.
• Ensure tool and scaffold hire is managed with clear health and safety responsibilities.

Responsibility:

• You are accountable for fixing any mistakes made during the project.
• Managing the snag list and calling tradesmen back can be challenging once they’ve been paid.