How to charge for call-outs and emergency work fairly

Introduction

Charging fairly for call-outs and emergency work is essential for tradespeople in the UK. It reflects the real costs of travel, time, and staying on-call. Missteps can lead to pricing disputes or lost business. But how can you make sure your charges are fair while meeting your business needs?

Why call-out charges exist

Call-out charges cover your time, travel expenses, and fuel. They account for the inconvenience and cost of being on-call, which can disrupt your personal and professional life. Remember, your expertise is valuable, especially when handling urgent work.

How to structure call-out fees

A well-structured fee can eliminate misunderstandings. Options include:

• Flat call-out fee + hourly rate: This method charges a fixed fee for responding to the job and then an hourly rate for the actual work.
• Minimum charge: Some tradespeople prefer a minimum charge that often includes the first hour of labour.

Out-of-hours multipliers

Adjust your fees for out-of-hours work. Typically, apply a multiplier of 1.5x for weekday evenings and 2x for weekends and bank holidays. This compensates for the inconvenience and higher personal time value.

What to include in your call-out charge

Ensure your call-out charge covers the real cost:

• Travel time, either one way or both, based on distance and traffic conditions
• Initial hour of labour, especially important for minor issues swiftly resolved
• Minimum callout period, ensuring it's financially viable for short yet time-consuming tasks

Being transparent

Communicate your rates clearly before visiting a site. Display them prominently on your website, discuss them on the phone, and confirm them via email. Transparency builds trust and reduces disputes.

Common situations

Emergency scenarios vary by trade, including:

• Gas emergencies: Only Gas Safe registered professionals should respond.
• Plumbing leaks: Rapid response can prevent extensive water damage.
• Boiler breakdowns: Critical in winter months, requiring prompt action.
• Lock-outs: Necessitate urgent locksmith services, especially in unsafe conditions.

Pricing examples across trades

Here's how different trades might set their rates:

• Plumber call-out:£50 base fee + £40 per hour
• Electrician emergency:£60 base fee + £45 per hour
• Locksmith:£70 call-out fee covering the first hour

The Consumer Rights Act 2015

Ensure price transparency as required by the Consumer Rights Act 2015. Failing to communicate prices upfront allows you only to charge a 'reasonable rate'. More info is available on Citizens Advice.

Handling price disputes

Price disputes can arise from misunderstandings. Handle calmly, explaining the basis of your charges. Adjust if necessary, but also learn how to prevent similar future issues.

Should you offer a call-out service at all?

Assess whether offering call-out services aligns with your business. Consider the stress, required resources, and potential interruptions to regular work.

Retainer contracts with landlords

Offering retainer contracts to landlords involves a fixed monthly fee for priority call-outs. This guarantees a steady income and fosters long-term business relationships.

Conclusion

Structuring fair call-out charges ensures you cover costs while maintaining transparency and compliance with laws. Evaluate each element to find what works best for your trade.

Helpful tools and resources

Check out our day rate calculator for more pricing guidance or read how to price a job as a tradesperson.