Hourly Rate / Time and Materials

For many clients, checking hourly rates feels like an administrative check-the-box exercise. However, the real danger lies not in the rate itself, but in the invisible multiplier: efficiency. An "expensive" hourly rate of €75 for a craftsman who finishes a job in four hours is ultimately cheaper than a "bargain" of €45 for someone who takes two days.

Furthermore, the hourly rate is the pivot point in a legal chess game surrounding variations (additional work) and the duty to warn. If you don't understand the breakdown and the rules, you will almost certainly pay too much.

The Efficiency Paradox

In construction, the Contract Sum (fixed price) is the safe haven, while Time and Materials (Daywork/Regie) often has an open end. Yet, time and materials is sometimes unavoidable. Here is the catch: a low hourly rate is often a trap.

Compare two scenarios for installing a dormer window:

Type of Worker	Hourly Rate	Time Required	Total Labor Cost
The "Cheap" Option	€ 40.00	32 hours (4 days)	€ 1,280.00
The Specialist	€ 70.00	12 hours (1.5 days)	€ 840.00

The Specialist is 40% cheaper, despite a rate that is nearly double. Never focus blindly on the hourly rate, but always ask for an estimate of the total price or the number of hours.

Analysis: What are you really paying for? (2025 Indication)

An hourly rate of € 65 seems high when you know the professional earns € 22 gross. Where does that money go? It is not pure profit, but necessary business operations.

Component	Amount (Estimate)	What you're paying for
Gross Wage	€ 22.00	The directly visible salary.
Social Charges & Insurance	€ 12.00	Employer contributions, pension, disability insurance (expensive for freelancers).
Overhead & Acquisition	€ 15.00	Unpaid hours: making quotes, bookkeeping, the van, tool depreciation.
Risk & Margin	€ 16.00	Buffer for illness, downtime between jobs, and entrepreneurial profit.
Total Excl. VAT	€ 65.00	Market rate for an experienced professional.

The "Tenzij-Clause": When you MUST pay without a warning

Legally, a contractor must warn you if variations will lead to a price increase (Art. 7:755 Dutch Civil Code). If they don't? In principle, you don't have to pay.

But beware: There is a major exception, the so-called "tenzij-clause" (unless-clause). The contractor does not have to warn you if you, as the client, "should have understood the necessity of the price increase yourself."

Strategic Insight: If you shout during the renovation: "Just add a dormer window there while you're at it", the judge will rule that you knew this costs money. You cannot then hide behind the lack of a warning. With subtle changes (e.g., "use those other tiles instead"), the burden of proof lies with the contractor.

Market Rates 2025

Due to staff shortages and inflation, rates have risen. These are the ranges we currently see in the market (excl. 21% VAT):

• Unskilled / Helper: € 35 - € 45 (Demolition, carrying)
• All-round Craftsman: € 50 - € 70 (Carpenter, bricklayer)
• Specialist: € 60 - € 90 (Plumber, electrician, plasterer - rates vary greatly by region)
• Project Management: € 90 - € 135 (Supervisor, construction manager)

Insider Checks for your Contract

1. 1. Define "Daywork" Rates beforehand: Even in a fixed-price contract. If variations arise, you don't want to negotiate the hourly rate then. Stipulate: "Variations will be performed at hourly rate X".
2. 2. Demand a "Ceiling Price" for Daywork: If a contractor refuses a fixed price, ask for a target price with a maximum (ceiling). This splits the risk.
3. 3. Check the "Man-hour" vs. "Machine-hour" trap: An excavator with an operator often costs twice as much as a man with a shovel. Ensure it is clear whether machines are included or excluded in the hourly rate.