Piecework
With piecework, the parties agree on a price per unit of finished work, and the pay equals that price multiplied by the quantity produced and measured. Unlike a day rate (where you pay for the day worked regardless of progress), piecework ties earnings directly to output: whoever produces more, earns more.
It is very common in construction for measurable, repetitive work —masonry, plastering, concrete pours, floor and tile laying, rebar fixing, painting— because it simplifies labor control and shifts the productivity incentive to the pieceworker. The contractor measures progress (the measurement record, or quantity take-off), validates it, and pays against the units executed.
Piecework is arranged in two ways: labor only (the contractor supplies material and equipment) or "all-in", when the pieceworker also includes materials or tools. It is worth distinguishing it from subcontracting: piecework is a way of paying for labor, whereas subcontracting is hiring a third party to execute a complete work package. On site, the piece-rate price is usually an input within the labor line of the unit price analysis.
Formula
Example
If plastering piecework is agreed at 90 per m² (labor only) and a crew executes and gets 150 m² validated during the week, the pay is 90 × 150 = 13,500, no matter how many days it took.
| Item | Unit | Quantity | Unit price | Amount |
|---|---|---|---|---|
| Materials | ||||
| Red clay brick | pza | 42.00 | $6.80 | $285.60 |
| Cement-sand mortar 1:4 | m³ | 0.030 | $2,150 | $64.50 |
| Labor | ||||
| Mason | jor | 0.180 | $520 | $93.60 |
| Laborer | jor | 0.180 | $380 | $68.40 |
| Equipment | ||||
| Small tools 3% | % | — | — | $4.86 |
Frequently asked questions
How is piecework pay calculated?
You multiply the agreed unit price for each unit of work (m², m³, piece, etc.) by the quantity actually produced and verified on site. The number of days or hours worked has no effect.
What is the difference between piecework and day rate?
Piecework pays per unit produced (by progress), while a day rate pays for the shift worked regardless of how much was completed. Piecework rewards productivity; the day rate rewards time.
What is the difference between piecework and subcontracting?
Piecework is a way of paying labor per unit executed, usually within the same project. Subcontracting is hiring a third party (a company or crew) to execute a complete work package, which may include materials, equipment, and responsibility for the result.