Insights · For committees & managers
The short answer. Hourly rates look cheaper on paper and often cost more by December. For ongoing grounds maintenance, a fixed monthly fee moves the weather risk and the efficiency risk from you to the contractor, makes the budget exact for the year, and removes the incentive to stretch a job. Hourly still earns its place, but only for genuine one-offs.
How the two models actually work
Hourly is exactly what it sounds like: a rate multiplied by time on site, invoiced after the fact. The invoice moves with the weather, the season and how the visit went, and the year's total is whatever it adds up to.
A fixed fee prices the year's scope once and divides it into twelve equal invoices. The work isn't equal month to month, more visits through the growing season, fewer through winter, but the invoice is, which is the point. The contractor carries the seasonal swing instead of passing it through.
Where hourly bites
The first bite is the spring flush. From September the grass doubles its pace, the visits run long, and the invoices spike exactly when nobody budgeted for it. For a committee that approved an annual figure back in autumn, a variable line item is the one that blows the budget, and grounds is usually that line item.
The second bite is structural: under hourly billing, the incentive runs the wrong way. The slower the job, the bigger the invoice. Most operators are honest, but the model still leaves you auditing time instead of results, and "we spent an hour on the hedges" is not the same statement as "the hedges are done".
Where a fixed fee wins
Certainty first: the number in the budget is the number on the invoice, twelve times, which is why owners corporations and facility budgets are built around fixed contracts. The incentive also flips. Efficiency now benefits the contractor, while the written scope keeps the work owed to you regardless of how quickly it's done.
Fixed pricing is also the only structure that makes quotes comparable. Three fixed prices against one written scope can be compared line for line; three hourly rates are three guesses about how long someone else's visits will take. Our guide to tendering a grounds maintenance contract covers how to set that scope so the comparison is real.
The catch with fixed fees, and how to protect yourself
A fixed fee is only as good as the scope behind it. Priced against a vague scope, it quietly becomes the contractor deciding what's included, and the dispute arrives around month five when the hedges haven't been touched and "general maintenance" turns out to mean mowing.
The protections are simple and belong in writing: a scope that names its inclusions and its exclusions, storm damage, one-off projects and tree work above a stated height being the usual carve-outs; visit frequency stated by season; evidence of each visit in the form of a service report; and an exit clause on around 30 days' notice so performance, not lock-in, is what keeps the contract alive. A fixed fee without a written scope is just an hourly job with the meter hidden.
Which model for which situation
Hourly or one-off quoted work makes sense where the job is genuinely one-off: a restoration mow on a garden that's been let go, project work, or a first visit on an unknown site. Once the work is recurring, the case for hourly evaporates.
Fixed fees suit any ongoing maintenance: body corporate and strata sites where a committee approves an annual budget, commercial and industrial sites that want grounds as a stable line item, and holiday homes where the owner isn't there to supervise hours. For what fixed programs actually cost at current Melbourne rates, see what body corporate gardening costs in Melbourne.
Moving from hourly to a fixed fee
Switching doesn't need a renewal date. The usual path is a site walkthrough to scope the property, a written scope back for approval, and a fixed quote that starts from the next month. Keep an hourly rate on record for genuine extras outside the scope, stated up front rather than negotiated later, and the two models end up doing what each does best.
Weighing up quotes for your site? Kanga works on fixed monthly fees against a written scope, with the same operator every visit and a service report after each one. What we commit to in writing is set out in The Kanga Standard, or you can request a walkthrough and fixed quote, usually with a reply the same business day.
Common questions
Is a fixed monthly fee dearer than paying hourly?
Over a full year for the same scope, the totals usually land close. The difference is who carries the variability: hourly passes weather and growth risk to you invoice by invoice, while a fixed fee prices the year once and holds it. What you pay for with a fixed fee is certainty, not extra margin.
What happens if work outside the scope comes up?
It gets quoted separately before it's done. A good fixed-fee contract names its exclusions, storm damage and one-off projects for example, so extras arrive as a conversation and a quote, never as a surprise line on the invoice.
Can we switch from an hourly arrangement to a fixed fee?
Yes, and it works mid-year as easily as at renewal. A site walkthrough to scope the property, a written scope for approval, and a fixed quote starting from the next month is the usual path.
Related