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Provisional sums and baseline schedules

7 replies [Last post]
Mon, 2005-01-10 23:08
Dinesh Kumar Dama...
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Hi everyone,

Do you usually include provisional sums in your baseline schedules or not and why

Regards

Dinesh
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Replies

Wed, 2005-01-12 04:03
#1
David Barry
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David’s view is the correct one IMHO, particularly where the contract invokes the standard method of measurement.

This clearly indicates that the contractor is not entitled to time for the expenditure of defined provisional sums whereas he is entitled to time for the expenditure of undefined provisional sums. It follows therefore that he must include within his programme for the defined provisional sum, and should not include for undefined provisional sums.

If contract is silent re SMM or time for provisional sums, I suspect it is still wise to follow these gudielines as it probably represents industry standard - do people agree with this suggested policy?

Obviously if the contract is specific as to how time for provisional sums is dealt with then that must govern.

Regards
David
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Tue, 2005-01-11 12:02
#2
Stuart Ness
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I would agree with David; the Baseline Schedule should take account of the reasonable time expected for carrying out work under a Provisional Sum if the PS is defined. If the PS is not – or cannot be - defined, then I think that although it may not be necessary to take account of the PS, it would nevertheless be advisable to make some provision for it in the Baseline Schedule (no pun intended!!).

In either event, whether the scheduling provision is excluded entirely or only shown provisionally, I would suggest that the Baseline Schedule is qualified with a note clearly stating that the time required to execute and complete the work related to the PS is itself provisional and cannot be confirmed until instructions (and the timing thereof!!) are issued in regard to the PS.

Stuart

www.rosmartin.com
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Tue, 2005-01-11 08:45
#3
David Bordoli
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Hi all

I beleive there is a requirement to take account of ’defined’ provisional sums in the baseline programme. It’s only ’undefined’ sum that you can wait until they are expended.

David
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Tue, 2005-01-11 05:44
#4
Ian Scrimshaw
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Hi guys,

I think that I am in agreement with you both, that it is not appropriate for a Contractor to include activities relating to provisional sums in the baseline schedule.

I can think of one project where the inclusion of a number of activities relating to provisional sums in the baseline schedule has worked against interests of the Contractor.

I think that it would be better to wait until the provisional sum item is instructed and then to produce a revision to the baseline schedule

Regards,

Ian
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Tue, 2005-01-11 05:44
#5
Steven Oliver
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Depends on whether you are client or contractor. A provisional sum should be in the clients baseline, the difficulty is that you dont know if/when the money will be spent, so you would have to agree some method of distribution. The contractors plan should definately not include provisional sums.

HTH
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Tue, 2005-01-11 05:23
#6
Dinesh Kumar Dama...
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Hi Steven,

Thank you for your reply.

I agree with you, actually I was asking about the baseline schedule in relation to provisional sums.

Thanks & regards

Dinesh
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Tue, 2005-01-11 04:19
#7
Steven Oliver
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IMHO, a provisional sum is a pot of money set aside by the client which may or may not be expended.

Therefore a contractors contract price should exclude all such sums, as the contractor does not know whether the money will be spent, let alone when.

HTH
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