Give the meaning and state the
circumstances where following methods of execution of work are used:
Day-work method
Piece work method
Day-work method
Day-work method means valuing a
work on the basis of actual amount of material, consumption and labour hours
required for completion of the work. In this method rates for various material
and hourly rates for labourers are previously fixed and the actual quantity of
material required and the labour hours spent as complete the work are recorded.
The estimate is then prepared as (Material rate X material consumption + Labour
hours X hourly rate + transport, overheads, tools, plant charges + contractors
profit).
This type of method is adopted
when the quantity of work for any particular item cannot be defined or
measured.
E.g.
Various plaster designs.
Architectural finished and
projections
Under water works.
Teak-wood polishing for
architectural designs in temples etc.
Piece work method
It is a method in which only
rates are agreed for a specific work without any reference to the total
quantity or time period. The specification of work are specified but no exact
quantity is worked out. Payment is made after completion of work and contractor
is required to arrange for the material, labour etc.
Piece work method is used for:
Works upto Rs. 2000
Urgent petty work
Piece work method is not a
valid contract and hence, the work could be terminated as any time.
