Prime cost sum
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If a fixed term contract has a pc sum and the builder increases the pc sum, however such increase was not approved by the client then is it termed as breach of contract? And is the client liable to pay such increase? The contract does allow for increase in pc sum as a variation however states that client should approve it.
As with all issues - it depends on the exact wording of the specific contract you are using. In very general terms however - the point of a PC sum is that it is an estimate put in the tender to allow the contractor to price attendance and include its execution into the contract programme. Resolution of the PC sum is the responsibility of the contract administrator, often the Architect assisted by a QS. It is up the the contract administrator to seek client approval before it is included in the contract by means of “an instruction”. Once instructed the builder is entitled to full payment of the revised contract sum.
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