Provisional sum - Revision history

Designing Buildings at 07:39, 4 January 2023

2023-01-04T07:39:18Z

← Older revision		Revision as of 07:39, 4 January 2023
Line 22:		Line 22:
	Depending on the degree to which the works that the provisional sum relates to can be defined at the tender stage, the actual works that are undertaken may affect the contractor’s programming, planning and pricing preliminaries:		Depending on the degree to which the works that the provisional sum relates to can be defined at the tender stage, the actual works that are undertaken may affect the contractor’s programming, planning and pricing preliminaries:

−	Defined provisional sums are those which have been described in sufficient detail that the contractor is expected to have made allowance for them in their programming, planning and pricing preliminaries.	+	Defined provisional sums are those which have been described in sufficient detail that the contractor is expected to have made allowance for them in their programming, planning and pricing preliminaries. For more information, see Defined provisional sum.

−	~~For more information, see Defined provisional sum.~~	+	Undefined provisional sums are less well described and so the contractor cannot be expected to make allowance for them in their programming, planning and pricing preliminaries. For more information, see Undefined provisional sum.
−		+
−	Undefined provisional sums are less well described and so the contractor cannot be expected to make allowance for them in their programming, planning and pricing preliminaries.	+
−		+
−	For more information, see Undefined provisional sum.	+

	The New Rules of Measurement (NRM) published by the Royal Institute of Chartered Surveyors (RICS) suggest that works relating to a defined provisional sum should describe:		The New Rules of Measurement (NRM) published by the Royal Institute of Chartered Surveyors (RICS) suggest that works relating to a defined provisional sum should describe:

Designing Buildings at 07:38, 4 January 2023

2023-01-04T07:38:41Z

← Older revision		Revision as of 07:38, 4 January 2023
Line 1:		Line 1:
−	[[File:Banner-~~gb9cb49996 1280~~.jpg]]	+	[[File:Banner-gb9cb49996_1280.jpg\|link=File:Banner-gb9cb49996_1280.jpg]]

	= What is a provisional sum? =		= What is a provisional sum? =
Line 15:		Line 15:

	As provisional sums are replaced by valuations of the work actually done as the project progresses, the contract sum may increase or decrease.		As provisional sums are replaced by valuations of the work actually done as the project progresses, the contract sum may increase or decrease.
		+
		+	NB Provisional sums should not be confused with prime cost sums. A prime cost sum is an allowance, usually calculated by the cost consultant, for the supply of work or materials to be provided by a sub-contractor or supplier that will be nominated by the client - that is, a sub-contractor or supplier that is selected by the client to carry out an element of the works and imposed on the main contractor. For more information see: The difference between a prime cost sum and a provisional sum.

	= Defined vs undefined provisional sums =		= Defined vs undefined provisional sums =

Designing Buildings at 09:15, 12 December 2022

2022-12-12T09:15:54Z

← Older revision		Revision as of 09:15, 12 December 2022
Line 1:		Line 1:
		+	[[File:Banner-gb9cb49996 1280.jpg]]
		+
	= What is a provisional sum? =		= What is a provisional sum? =

Designing Buildings at 09:12, 12 December 2022

2022-12-12T09:12:38Z

← Older revision		Revision as of 09:12, 12 December 2022
Line 1:		Line 1:
		+	= What is a provisional sum? =
		+
	A provisional sum is an allowance (or best guess), usually estimated by a cost consultant, that is inserted into tender documents for a specific element of the works that is not yet defined in enough detail for tenderers to accurately price.		A provisional sum is an allowance (or best guess), usually estimated by a cost consultant, that is inserted into tender documents for a specific element of the works that is not yet defined in enough detail for tenderers to accurately price.

Line 10:		Line 12:
	\|}		\|}

−	As provisional sums are replaced by valuations of the work actually done as the project progresses, the contract sum may increase or decrease. In addition, depending on the degree to which the works that the provisional sum relates to can be defined at the tender stage, the actual works that are undertaken may affect the contractor’s programming, planning and pricing preliminaries:	+	As provisional sums are replaced by valuations of the work actually done as the project progresses, the contract sum may increase or decrease.

−	~~[[Defined_provisional_sum\|~~Defined provisional sums]] are those which have been described in sufficient detail that the contractor is expected to have made allowance for them in their programming, planning and pricing preliminaries.	+	= Defined vs undefined provisional sums =
		+
		+	Depending on the degree to which the works that the provisional sum relates to can be defined at the tender stage, the actual works that are undertaken may affect the contractor’s programming, planning and pricing preliminaries:
		+
		+	Defined provisional sums are those which have been described in sufficient detail that the contractor is expected to have made allowance for them in their programming, planning and pricing preliminaries.

	For more information, see Defined provisional sum.		For more information, see Defined provisional sum.
Line 28:		Line 34:

	If this information is not provided, NRM suggests the provisional sum is considered undefined, irrespective of what it is called in the tended documents.		If this information is not provided, NRM suggests the provisional sum is considered undefined, irrespective of what it is called in the tended documents.
		+
		+	= Difficulties associated with provisional sums =

	Provisional sums are provided for in different ways in different forms of contract, and some forms of contract can be a little vague about how provisional sums should be handled, in particular regarding adjustments to the programme. There may also be issues if the employer decides to omit work related to a provisional sum from the contract, as the contractor may claim for loss of profit, unless the contract allows the work to be omitted. It is important therefore that parties to the contract familiarise themselves with the exact wording and meaning of the relevant clauses that are being used.		Provisional sums are provided for in different ways in different forms of contract, and some forms of contract can be a little vague about how provisional sums should be handled, in particular regarding adjustments to the programme. There may also be issues if the employer decides to omit work related to a provisional sum from the contract, as the contractor may claim for loss of profit, unless the contract allows the work to be omitted. It is important therefore that parties to the contract familiarise themselves with the exact wording and meaning of the relevant clauses that are being used.
Line 34:		Line 42:

	For these reasons, provisional sums should only be used as a last resort, they should not be an easy fall-back position for consultants when designs are incomplete or information is difficult to obtain. The risks are significant enough that the NEC Engineering and Construction Contract (NEC3) does not have any allowance for provisional sums.		For these reasons, provisional sums should only be used as a last resort, they should not be an easy fall-back position for consultants when designs are incomplete or information is difficult to obtain. The risks are significant enough that the NEC Engineering and Construction Contract (NEC3) does not have any allowance for provisional sums.
		+
		+	= Examples of provisional sums =
		+
		+	Examples of situations that might involve provisional sums might include:
		+
		+	* Uncertainties relating to ongoing planning applications.
		+	* Earthworks where it has not been possible to carry out thorough ground investigations.
		+	* Where works cannot be known until an existing structure is opened up or removed.
		+	* Where innovative or specialist work is impossible to accurately price in advance.

	= Related articles on Designing Buildings =		= Related articles on Designing Buildings =
Line 43:		Line 60:
	* Bill of quantities BOQ		* Bill of quantities BOQ
	* Prime cost in construction contracts		* Prime cost in construction contracts
−	* Contingencies in construction
−	* Lump sum contract
−	* Prime cost price
−	* Tender documentation for construction projects
−	* Procurement route
−	* Proposals.
	* Architect's instruction		* Architect's instruction
	* Midland Expressway Ltd v Carillion Construction Ltd & Others		* Midland Expressway Ltd v Carillion Construction Ltd & Others
Line 55:		Line 66:
	* Variations in construction contracts		* Variations in construction contracts
	* New Rules of Measurement		* New Rules of Measurement
−	* Cost vs price
	* Defined provisional sum		* Defined provisional sum
−	* Construction contract
	* Dayworks in construction		* Dayworks in construction
	* Nominated sub-contractor		* Nominated sub-contractor
	* Approximate bill of quantities		* Approximate bill of quantities

−	=== External references ===	+	= External references =

	* [http://www.casecheck.co.uk/CaseLaw.aspx?EntryID=12992 Expressway Ltd v Carillion Construction Ltd 2006] - the meaning of provisional sum.		* [http://www.casecheck.co.uk/CaseLaw.aspx?EntryID=12992 Expressway Ltd v Carillion Construction Ltd 2006] - the meaning of provisional sum.

	[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:Construction_management]] [[Category:Cost_/_business_planning]] [[Category:Procurement]]		[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:Construction_management]] [[Category:Cost_/_business_planning]] [[Category:Procurement]]

Designing Buildings at 09:39, 12 October 2022

2022-10-12T09:39:23Z

← Older revision		Revision as of 09:39, 12 October 2022
Line 35:		Line 35:
	For these reasons, provisional sums should only be used as a last resort, they should not be an easy fall-back position for consultants when designs are incomplete or information is difficult to obtain. The risks are significant enough that the NEC Engineering and Construction Contract (NEC3) does not have any allowance for provisional sums.		For these reasons, provisional sums should only be used as a last resort, they should not be an easy fall-back position for consultants when designs are incomplete or information is difficult to obtain. The risks are significant enough that the NEC Engineering and Construction Contract (NEC3) does not have any allowance for provisional sums.

−	= Related articles on Designing Buildings ~~Wiki~~ =	+	= Related articles on Designing Buildings =

	* Prime cost sum		* Prime cost sum

Designing Buildings at 05:54, 27 August 2020

2020-08-27T05:54:56Z

← Older revision		Revision as of 05:54, 27 August 2020
Line 66:		Line 66:
	* [http://www.casecheck.co.uk/CaseLaw.aspx?EntryID=12992 Expressway Ltd v Carillion Construction Ltd 2006] - the meaning of provisional sum.		* [http://www.casecheck.co.uk/CaseLaw.aspx?EntryID=12992 Expressway Ltd v Carillion Construction Ltd 2006] - the meaning of provisional sum.

−	[[Category:Construction_management]] [[Category:Cost_/_business_planning]] [[Category:Procurement]]	+	[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:Construction_management]] [[Category:Cost_/_business_planning]] [[Category:Procurement]]

Editor at 15:54, 24 September 2018

2018-09-24T15:54:47Z

← Older revision		Revision as of 15:54, 24 September 2018
Line 35:		Line 35:
	For these reasons, provisional sums should only be used as a last resort, they should not be an easy fall-back position for consultants when designs are incomplete or information is difficult to obtain. The risks are significant enough that the NEC Engineering and Construction Contract (NEC3) does not have any allowance for provisional sums.		For these reasons, provisional sums should only be used as a last resort, they should not be an easy fall-back position for consultants when designs are incomplete or information is difficult to obtain. The risks are significant enough that the NEC Engineering and Construction Contract (NEC3) does not have any allowance for provisional sums.

−	~~= Find out more =~~	+	= Related articles on Designing Buildings Wiki =
−		+
−	=== Related articles on Designing Buildings Wiki ===	+

	* Prime cost sum		* Prime cost sum
Line 50:		Line 48:
	* Tender documentation for construction projects		* Tender documentation for construction projects
	* Procurement route		* Procurement route
		+	* Proposals.
	* Architect's instruction		* Architect's instruction
	* Midland Expressway Ltd v Carillion Construction Ltd & Others		* Midland Expressway Ltd v Carillion Construction Ltd & Others

Designing Buildings at 15:39, 5 September 2018

2018-09-05T15:39:31Z

← Older revision		Revision as of 15:39, 5 September 2018
Line 39:		Line 39:
	=== Related articles on Designing Buildings Wiki ===		=== Related articles on Designing Buildings Wiki ===

−	* ~~Architects instruction.~~	+	* Prime cost sum
−	* ~~Attendance.~~	+	* The difference between a prime cost sum and a provisional sum
−	* Bill of quantities.	+	* Preliminaries in construction
−	* Contingencies.	+	* Provisional quantity
−	* ~~Cost vs~~ price.	+	* Bill of quantities BOQ
−	* ~~Defined provisional sum.~~	+	* Prime cost in construction contracts
−	* ~~Hard costs v soft costs.~~	+	* Contingencies in construction
−	* ~~[[Midland_Expressway_Ltd_v_Carillion_Construction_Ltd_%26_Others\|~~Midland Expressway Ltd v Carillion Construction Ltd & Others~~.]]~~	+	* Lump sum contract
−	* ~~Named subcontractor.~~	+	* Prime cost price
−	* ~~Nominated subcontractor.~~	+	* Tender documentation for construction projects
−	* ~~Preliminaries.~~	+	* Procurement route
−	* ~~Prime cost~~ price.	+	* Architect's instruction
−	* ~~Prime cost~~ sum.	+	* Midland Expressway Ltd v Carillion Construction Ltd & Others
−	* ~~Provisional quantity.~~	+	* Attendance for construction
−	* ~~Tender documents.~~	+	* Contract sum
−	* ~~The difference between a prime cost and provisional sum.~~	+	* Variations in construction contracts
−	* ~~Undefined provisional sum.~~	+	* New Rules of Measurement
		+	* Cost vs price
		+	* Defined provisional sum
		+	* Construction contract
		+	* Dayworks in construction
		+	* Nominated sub-contractor
		+	* Approximate bill of quantities

	=== External references ===		=== External references ===

Editor at 15:00, 17 August 2018

2018-08-17T15:00:52Z

← Older revision		Revision as of 15:00, 17 August 2018
Line 16:		Line 16:
	For more information, see Defined provisional sum.		For more information, see Defined provisional sum.

−	Undefined provisional sums are less well described and so the contractor cannot be expected to make allowance for them in their programming, planning and pricing preliminaries. ~~This means the contractor may be entitled to an extension of time and/or additional payments when the actual works are undertaken. An example of an undefined~~ provisional sum ~~might be when work is required below an existing structure, but the ground conditions, and so the extent of work required, cannot be determined until it is demolished and the ground opened up~~.	+	Undefined provisional sums are less well described and so the contractor cannot be expected to make allowance for them in their programming, planning and pricing preliminaries.
		+
		+	For more information, see Undefined provisional sum.

	The New Rules of Measurement (NRM) published by the Royal Institute of Chartered Surveyors (RICS) suggest that works relating to a defined provisional sum should describe:		The New Rules of Measurement (NRM) published by the Royal Institute of Chartered Surveyors (RICS) suggest that works relating to a defined provisional sum should describe:
Line 53:		Line 55:
	* Tender documents.		* Tender documents.
	* The difference between a prime cost and provisional sum.		* The difference between a prime cost and provisional sum.
		+	* Undefined provisional sum.

	=== External references ===		=== External references ===

Editor at 14:37, 17 August 2018

2018-08-17T14:37:56Z

← Older revision		Revision as of 14:37, 17 August 2018
Line 12:		Line 12:
	As provisional sums are replaced by valuations of the work actually done as the project progresses, the contract sum may increase or decrease. In addition, depending on the degree to which the works that the provisional sum relates to can be defined at the tender stage, the actual works that are undertaken may affect the contractor’s programming, planning and pricing preliminaries:		As provisional sums are replaced by valuations of the work actually done as the project progresses, the contract sum may increase or decrease. In addition, depending on the degree to which the works that the provisional sum relates to can be defined at the tender stage, the actual works that are undertaken may affect the contractor’s programming, planning and pricing preliminaries:

−	Defined provisional sums are those which have been described in sufficient detail that the contractor is expected to have made allowance for them in their programming, planning and pricing preliminaries.	+	[[Defined_provisional_sum\|Defined provisional sums]] are those which have been described in sufficient detail that the contractor is expected to have made allowance for them in their programming, planning and pricing preliminaries.

	For more information, see Defined provisional sum.		For more information, see Defined provisional sum.