Day Rate vs Contract labour benefits

[Dana Walker]

I have seen very simple project be run up way over budget due to day laborers not wanting to complete the project in fear of not having work. Are there ANY benefits whatsoever to employing day laborers over contracted laborers? I think not, but I may be missing some perspective. I visited mexico last year, and was surprised to see the number of day rate laborers employed for small builds. Is there a reason they would do this?