Are PC sums included in the contract price?

Are PC sums included in the contract price?

Prime Cost sums in construction (PC or PC sums) is a sum in the contract to provide an idea of the basic cost/price of some material or items for pricing the tender. The main contractor is eligible to get his mark up and attendance costs to the above allowance. …

What does PC mean on a building quote?

Prime Cost
Prime Cost (PC) items and provisional sums (PS) are two items in a standard building contract which cause great confusion among homebuyers. Most building contracts are called “fixed price contracts”, but the final contract sum can vary due to fluctuations in PC and PS items.

What does PC amount mean?

Prime Cost Amount
What is a Prime Cost Amount? Prime Cost Amounts are sometimes also referred to as PC Sums. The JBCC defines a Prime Cost Amount as “An amount included in the contract sum for the delivered cost of material and goods obtained from a supplier as instructed by the principal agent”.

What is a PC sum allowance?

The PC Sum, or Prime Cost Sum, mostly refers to the costs of fixtures and fittings. Providing serial/model numbers, and the exact quantities needed of your PC items will allow the contractor to give a more accurate PC Sum in your tender costs.

What is the difference between a PC sum and a provisional sum?

They both relate to estimates made for certain costs in the absence of exact figures. For more information see: Prime cost sum. A provisional sum is an allowance, usually estimated by a cost consultant, for a specific element of the works that is not yet defined in enough detail for tenderers to accurately price.

What is the difference between prime cost and provisional sum?

Traditionally, a prime cost is limited to the cost of supplying the relevant item, and does not include the cost of any work that relates to it (such as its installation). In contrast, provisional sums include allowances for both the supply item and all related work to be performed by the contractor.

Do provisional sums include builders margin?

‘Builder’s margin’ For example, the builder includes a provisional sum for the installation of feature cladding of $5,000 in their quote. The final cost of supplying and installing the cladding (remembering that the PS includes supply and labour) ends up being $7,700; which is $2,700 more than what was allowed.

What is a contract sum?

The contract sum is the price agreed with the contractor and entered into the contract. The agreed contract sum should be calculated and checked very carefully as errors are deemed to have been accepted by both parties.

What is Profit & attendance?

Fees for profit and attendance are usually paid where the main contractor supervises the work of a sub-contractor. This accounts for the profit which the main contractor would have made had he appointed the sub-contractor himself, as well as the cost of supervision.

What does a builders margin cover?

What is a Builders Margin? A builders margin is the percentage added to the cost price of a building project and can vary from builder to builder depending on the size of the business or type of building service offered. This margin covers all of the business running costs including the profit for the builder.

What is included in contract sum?

What is included in a contract sum analysis?

A Contract Sum Analysis (CSA) is an alternative pricing document to a Schedule of Works (SoW) / Bill of Quantities (BoQ). It’s often prepared in a standard format by the Employers Agent to support the tender returns review. The Employers Agent requests that all tenders are returned on the same CSA format.

Can a provisional sum be included in a contract?

A provisional sum is an amount of money included in the contract sum to cover work or materials, or both, the extent of which cannot be specifically detailed when entering a contract. Typically, builders will include a PS for sitework costs. The builder is legally required to take reasonable steps to ensure an…

What makes up a prime cost sum ( PC )?

PC Sum or otherwise referred to as Prime Cost Sum reflects the material allowance being made in the rate for a specific item. A quoted rate normally consists of Material, Labour, Plant and mark-up (profit + overheads).

Why are PC sums used in home construction?

The use of PC sums are very popular in the Home Builders market as Clients with limited building knowledge understand this concept and enjoy having control over this selection process during the final construction stages of their new home.

What does a PC mean in a contract?

A PC item is an amount of money included in a contract sum to purchase a specified item such as tiles, taps, doors or bathroom fittings. An agreed estimated amount is included at contract signing but the specific products are not selected until a later stage.