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Last edited 17 Aug 2018
The difference between a prime cost sum and a provisional sum
Confusion can arise regarding two items that may appear in standard forms of building contract – prime cost sums (PC or PC sums) and provisional sums (PS). They both relate to estimates made for certain costs in the absence of exact figures.
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 supplier that is selected by the client to carry out an element of the works and imposed on the main contractor after the main contractor has been appointed.
The main contractor is entitled to add mark up and attendance costs to the allowance. If the main contractor's actual costs then turn out to be higher, the contract sum is increased, and if the main contractor's actual cost is lower, the contract sum is reduced.
For more information see: Prime cost sum.
For more information see: Provisional sum.
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