What is the difference between PC sum and provisional sum?
They both relate to estimates made for certain costs in the absence of exact figures. For more information see: Prime cost sum. A provisional sum is an allowance, usually estimated by a cost consultant, for a specific element of the works that is not yet defined in enough detail for tenderers to accurately price.
What is a PC sum in a quote?
A prime cost sum (PC or PC sum) is an allowance, usually calculated by the cost consultant, for the supply of work or materials to be provided by a contractor or supplier that will be nominated by the client (that is, a supplier that is selected by the client to carry out an element of the works and imposed on the main …
Should provisional sums be included in the contract sum?
In contrast, if the provisional sum is stated to be “Undefined” then the scope still requires to be designed and settled or the sum is contingent in nature then such sums are deemed not to be included in the programme for the Works and no “Preliminaries” or other costs are deemed to be included in the Contract Sum.
What percentage should prelims be?
10-15%
As the prelims sum is usually at least 10-15% of the direct works sum, but often higher, the need to shrewdly price prelims becomes important when preparing tender returns.
What does PC mean in construction?
Principal Contractor
PC – Principal Contractor.
How does PC Sum work?
A PC Sum is a set amount of money included in a contract to purchase an item such as tiles, a countertop or a tap. When entering into the contract the exact item that is to be selected is unknown therefore and fair and reasonable PC Sum is inserted into the pricing document to cover the cost of that item.
What is a provisional sum?
What are Provisional Sums? A PS is a monetary allowance for works that will be carried out, but cannot be priced exactly at the time of signing the contract. They often include a combination of items, materials, labour and plant hire.
What is included in a provisional sum?
Provisional sums are generally an allowance or estimate (often described as a “best guess”) included within the contract price of a construction contract for works that are: not sufficiently defined, designed or detailed to allow an accurate determination of its cost at the time the contract is entered; and/or.
Is provisional sum a variation?
When does a PS become a variation? The nature of a PS means the description is usually very broad. This gives the parties the ability to include a range of work under the PS without the need for a variation. Unlike a PC Item, where there is a change to the scope of work there is no need to do a variation for a PS.
What is OH & P in construction?
General Contractors charge for Overhead and Profit (“O & P“) as line items on repair or rebuild estimates. O & P covers a General Contractor’s time and expenses and is calculated as a percentage of the total cost of a job.
What is a PC sum NZ?
PC sums are where you and / or your builder agree to NOT fix a part of your build contract. Avoid or minimize PC Sums. For example, the excavation cost will probably be a PC sum. If during the excavation, the soil is fund to be sub-standard, additional work may be required and this cost is passed on to you.
What is the difference between a PCPC sum and provisional sum?
PC sums do not include labor or attendance upon subcontractors, so make sure when you use these that they are calculated on a separate line item. A provisional sum is more to do with an unclear specification or area of work, a great example of this is when pricing earthworks.
What is the difference between provisional sum and prime cost?
In practice, the distinction is often more academic. For example, under both AS 2124 and AS 4000, the definition of ‘provisional sum’ includes prime cost items. The result is that provisional sums and prime costs are treated exactly the same way under these contracts.
What is the PC sum and why is it important?
The PC Sum, or Prime Cost Sum, mostly refers to the costs of fixtures and fittings. Your house will need taps, doors, handles, flooring etc and if you’ve ever gone shopping for any of these you would have noticed a large difference in their prices.
What does Ps sum mean in construction?
PS Sum It is much harder to be exact in this category. Here, we are referring to work that needs to be done, or materials whose costs cannot be pinpointed at the time of providing a quotation or signing a contract. There can be larger unforeseen costs hidden in the Provisional Sums (PS Sums).