...if you are doing service work, then, if you do a 2 hour job, you need to charge a half day rate, if you anything over 4 hours you need to charge your day rate...

I agree but I think this should kick in after a T&M job time runs beyond the 2 hours. For example, under 2 hours the customer pays the usual minimum service call charge (or trip charge or travel time) which covers the first hour then a per hour rate for the second hour. If the job takes longer than 2 hours the customer has bought a half day, more than 4 hours a full day.

Reason being that if you are on the job for say 6 hours, between travel time, lunch etc. the day is shot and the customer should be billed for it.

-Hal