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.
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    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.
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    Information on building your own home is for general purposes only and may not be accurate or up-to-date. Always consult with licensed professionals before making any decisions. We are not responsible for any errors or outcomes based on this content.

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