Provisional sum
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Hi there!
Thanks for the informative articles about contracts.
I have few queries which need your further explanation:-
1. Is the provisional sum equal to variation when SO further expands it?
2. Understand there are defined and undefined provisional sum. Do we need to carry out remeasurement if the defined provisional sum expands?
Say the contractor is given a set of tender drawings for a restoration work with details and specifications and the quoted rate in psf. And the contract actually captured "Restoration Work (provisional sum) @ RM30 psf" without any breakdown or items beside the building built up.
Item Description Area (sf) Rate (RM) Total (RM)
A. Restoration Work (provisional sum) 5,000 30.00 psf 150,000.00
Is it considered a defined provisional sum? In this case, do we need to carry out remeasurement and renegotiate the price and the contractor to resubmit their quotation if the design remains as per contract drawing?
And what if there are some changes to the contract drawing, should be raised variation for the particular changes or we have to re-measure the entire work again?
What is the difference in terms of defined and undefined provisional sum in terms of pricing and remeasurement?
3. What is the difference between a provisional sum and provisional quantity? As for as I understand, only provisional quantities are subject to re-measurement. But somehow, there are claims that the provisional sum is also subject to remeasurement.
Looking forward to hearing from you.
Thank you very much.
As with most issues like this - it depends on the precise wording in the contract and any documentation the contract refers to.
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