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Question

2 replies [Last post]
Fri, 2007-04-13 00:20
ram prasad
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Joined: 12 Apr 2007
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what is the difference between prime cost and provisional sum. which is benefical to the owner in a lumpsum construction contract.
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Replies

Wed, 2007-04-18 11:06
#1
Marcio Sampaio
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Joined: 7 Nov 2005
Posts: 658
Groups: Petro-Chem / Oil & Gas
A Prime Cost (PC’s) is an agreed, reasonable estimate for materials (fixtures and fittings) which you may not have selected at the time of entering into the contract. Usually, PC’s are one-off items, however they can relate to a large number of items when the labour cost remains constant. Examples may include kitchen and bathroom items.

A Provisional Sum (PS’s) is a reasonable estimate for material and labour of a particular part of the home which the builder cannot give a definite price for. The reason being the owner had not decided what the want at the time of entering into the contract. Examples are pool and landscaping.

Regards.
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Wed, 2007-04-18 00:11
#2
Bryan Russell
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Joined: 14 Dec 2005
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A Prime Cost or P.C. sum is an item in the BoQ used to define some form of special work for a service or article to be incorporated into the Works. It should have a secondary item for the tenderers to fill in for their work in taking delivery, offloading, fixing possibly, and overheads and profit as a percentage or a fixed sum.

A Provisional Sum is the a sum to be expended ONLY on the instructions of the Engineer for some task which was not defined at tender stage. Valuation will be done at applicable contract rates or new rates as in the Variation clause.

Definitions of Provisional Sums are in Sub-Clause 1 of FIDIC 99 and how to deal with them in S-C 13.5
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