Fixed Price V Hourly Rate for Maintenance Plumbing

When comparing plumbing companies in Melbourne you generally have 2 service methods, Hourly Rate Plumbing or Fixed Price Plumbing. A common question we get asked is which method is best. Let's look at the Pros and Cons of the two methods and determine what’s best for you.

Hourly Rate Plumbing

Hourly Rate Plumbers charge for time spent on site and materials used. The hourly rate they charge will vary and take into account expenses like fixed overheads, fuel, insurances & wages etc. Materials will be charges on an as used basis. Once all tasks are completed the time spent on site is multiplied by the hourly rate, usually charged in 30 min intervals plus the materials used will be your job total cost.

Example 1: Burst or Leaking Hot Water System

Plumber spends 3 hrs on site replacing burst hot water service with new hot water service.

• Charge= 3hrs x $100 per hour= $300.00 Labour
• Material= $1,000.00 for new hot water service
• Total Cost = $1,300.00

Example 2: Leaking kitchen tap and blocked bathroom basin.

Plumber spends 1 hr on site replacing mixer tap on the kitchen sink and plunges the bathroom basin drain clear.

• Charge= 1hrs x $100 per hour= $100.00 Labour
• Material= $120.00 for new mixer tap
• Total Cost = $220.00

Fixed Rate Plumbing

Fixed rate plumbers have a pre-determined value for each plumbing task. The pre-determined values are still based on time taken to perform a task + materials used but they are not itemised on your bill. A fixed rate plumber will not give you an hourly rate to do a job but once the job or task has been assessed they will provide you with a fixed price to do the work. If the fixed price is not agreed on then a fee usually between $60-$90 dollars will be payable for the quote. The fee is charged to cover the plumbers time spent to provide the quote.

Example 1: Burst or Leaking Hot Water System

Plumber arrives on site to quote a fixed price to replace your burst hot water service with a new hot water service.

• Fixed price to do the job Cost = $1,300.00
• If the fixed price is not accepted you will be charged between $60-$90 for the quote

Example 2: Leaking kitchen tap and blocked bathroom basin.

Plumber arrives on site to quote a fixed price to replace your mixer tap on your kitchen sink and unblock your bathroom basing drain.

• Fixed price to do change the mixer tap $300.00
• Fixed price to unblock the sink $200.00
• Total Cost= $500.00
• If the fixed price is not accepted you will be charged between $60-$90 for the quote.

Please note: The above are examples only and are not actual costs to do carry out these tasks.

Why the Difference in cost for the same job

The difference in cost between the hourly rate plumber and the fixed price plumber in example 2 Leaking kitchen tap and blocked bathroom basin is the fixed price plumber has a pre-determined cost to change a mixer tap and a pre-determined amount of material. In this case 1.5 hrs Labour to change the mixer tap plus the new mixer tap and new isolation valves = $300.00

He also has a pre determined cost to unblock a bathroom basin which includes the charge of an electric drain machine= $200.00

Please note: The above are examples only and are not actual costs to do carry out these tasks.

If it takes 1hr to change the mixer tap but the fixed price plumber has 1.5 hrs allowed in their fixed price you are charged 1.5 hrs. The same goes with material if there is a charge to replace the isolation valves to your mixer tap but they are not required to be changed you are still charged for the isolation valves.

With the charge for unblocking the bathroom basin If the fixed price plumber unblocks the basin with a hand plunger and it takes 30 min but has allowed for the use of an electric sewer machine and 1 hr labour then you are charged for the electric sewer machine and 1 hr labour.

Fixed Price Plumbing

Pros

• You know what the total cost of the job will be before they start

Cons

• You may be paying more than you need to for time and material not used.
• You will pay a quote fee if the fixed price is not accepted.

Hourly Rate Plumbing

Pros

• You are charged for actual time spent doing your task.
• Itemised invoice listing labour and material used.

Cons

• Not knowing the exact amount until the job is completed.

What is best?

The choice is personal and totally up to the individual. At Essendon Plumbing Services we believe that for all your home and business maintenance plumbing needs we can provide the best value for money on the hourly rate method of plumbing.

We believe we achieve this by having an open, honest and transparent pricing system and communicating clearly throughout the job process so there is no unpleasant surprises and you’ll have the comfort of dealing with an organisation successful in business for 33 years. We back it all up with our 100% customer satisfaction guarantee. This allows us the opportunity to provide the ultimate in service and value to all our customers.