Last edited 08 Nov 2017

Prime cost price

According to NRM 2, RICS new rules of measurement, Detailed measurement for building works, published by the Royal Institution of Chartered Surveyors (RICS) in April 2012:

Where the exact type of product or component cannot be specified, an estimated price for the product or component shall be given in the description as a prime cost price (PC price). State, for example, ‘Allow the PC price of £x per thousand delivered to site’, ‘Allow the PC price of £y per m2 delivered to site’, or ‘Allow £z each delivered to site’.

Unless specifically stated otherwise in the bill of quantities or in these rules, the contractor shall be deemed to have allowed for all items listed in paragraph 3.3.3.13 in his or her priced rate for each building component/item incorporating a PC price.

PC prices shall exclude any allowance for the main contractor’s overheads and profit, which are dealt with separately.

Paragraph 3.3.3.13 refers to:

(1) labour and all costs in connection therewith;
(2) materials and goods together with all costs in connection therewith;
(3) assembling, installing, erecting, fixing or fitting materials or goods in position;
(4) plant and all costs in connection therewith;
(5) waste of goods or materials;
(6) all rough and fair cutting unless specially stated otherwise;
(7) establishment charges; and
(8) cost of compliance with all legislation in connection with the work measured including health and safety, disposal of waste and the like.