What a Plumber should charge?
Service rate per hour as given by industry = R350 to R680. (Average R465 per hour across all provinces).
* these rates can be subject to volume and would not generally apply when doing tenders etc.
- Service charges vary and dependant on costs per province which include: Labour rate (salaries), insurance, medical aid and pension, marketing and vehicle costs.
- This service fee excludes a call out fee (based on travel costs) that can be charged.
- Service charges exclude material costs supplied by plumber.
Rate guidelines are based on the following:
- Business administrative costs which include rent, lights & water, telephones, equipment, stationery and furniture
- Marketing and advertising costs
- Insurance costs which include general office, vehicle, life and disability, public liability, product liability, defective workmanship, tools and equipment
- Tools and uniform
- Salaries which include employment of qualified plumbers
- Medical aid and pension
- Comply with plumbing standards and local bylaws
- Comply with Health and Safety legislation
How a plumbing company should calculate their service rate:
- Step one: Calculate direct and indirect costs of Plumbing business per year
- Step two: Divide cost of business by the amount of months available to work (average 10.3 months per year)
- Step Three: Add required profit
- Step four: Divide annual cost (including profit )by working days per month (average 20 working days p/m) = Total labour per day
- Step Five: Divide total labour per day by average jobs that can be done in one day = Hourly service charge
Some plumbing companies will include there travel costs into this service rate or they may charge separately for travel.
- The Institute of Plumbing South Africa (IOPSA) supports a free market within the boundaries of the South African Legislation. IOPSA does not get involved in how a plumber costs their business with respect to service fee structure, call out charges, labour charges or material costs.
- Insurance plumbing rates are not included in these calculations and based on the insurance industry criteria.
- NOTE: Check the following with your local plumbing company before acquiring their services:
- Ensure your plumbing company can give you a breakdown of how they calculate their service rate
- Confirm your plumbing company complies with current legislation and local bylaws.
- Confirm your plumbing company employs qualified plumbers and they are registered with Plumbing Industries Registration Board (PIRB) (A consumer is breaking the law if a un-qualified plumber works, installs or maintains plumbing on a property owned by them)
- Confirm with your plumber if call out charge is included in service cost or charged separately.
- Ask your plumber to issue you with a Plumbing Certificate of Compliance (PIRB).
- Ensure your plumbing company quotes before you give them the go ahead.
- As you are contracting a plumbing company, ensure that they are a legal entity, financially stable and can deliver the service.