Provisional and Prime Cost Items
Mon, 2006-02-20 05:22
Hi Friends,
1. Can we accept a Provisinal Sum Item nominated by the engineer as a Unit Rate Item?
2. Whats the difference between the P.C. for Supply & Fix and P.S. except for Builders work cost?
Sort me out friends.
1. Can we accept a Provisinal Sum Item nominated by the engineer as a Unit Rate Item?
2. Whats the difference between the P.C. for Supply & Fix and P.S. except for Builders work cost?
Sort me out friends.
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Sat, 2006-03-11 11:51
#1
Hi Stuart,
Long time...... Wassup at your end?
The 15% in question is laid down or defined in the contract. If the PS or PC-Rate amount varies +/- 15%, then the Main Contractor has the right to revise his attendance / overheads & profit. But, if the variation falls in the 15%-range, then there shall be no change in the percentage of attendance / overheads & profit over the PS/PC-Rate item.
Cheers
Vishwas
Long time...... Wassup at your end?
The 15% in question is laid down or defined in the contract. If the PS or PC-Rate amount varies +/- 15%, then the Main Contractor has the right to revise his attendance / overheads & profit. But, if the variation falls in the 15%-range, then there shall be no change in the percentage of attendance / overheads & profit over the PS/PC-Rate item.
Cheers
Vishwas
Wed, 2006-03-08 07:12
#2
Irfan,
To return to your original question, a “Provisional Sum” is a sum that is provided for work or for costs that cannot be entirely foreseen, defined or detailed at the time of issuing the tender documents. In addition, during the administration of the Contract, Provisional Sums are spent by the Contractor after the exact nature and extent of the Work have been agreed.
It appears that in your situation, you simply have a Provisional Rate Item, which can be firmed up once the nature and extent of Work have been ascertained.
I would suggest that you avoid accepting a “Provisional Sum” (which is flexible and subject to change) as a Unit Rate Item until such time as you are sure of the nature and extent of the work in question.
A “Prime Cost Sum” means a sum provided for work or services to be executed by a nominated sub-contractor or for materials or goods to be obtained from a nominated supplier. In addition the Prime Cost Sum will be subject to an uplift for the Contractor’s attendance and profit. These uplifts are generally not applicable to Provisional Sums.
Hope this helps,
Stuart
www.rosmartin.com
To return to your original question, a “Provisional Sum” is a sum that is provided for work or for costs that cannot be entirely foreseen, defined or detailed at the time of issuing the tender documents. In addition, during the administration of the Contract, Provisional Sums are spent by the Contractor after the exact nature and extent of the Work have been agreed.
It appears that in your situation, you simply have a Provisional Rate Item, which can be firmed up once the nature and extent of Work have been ascertained.
I would suggest that you avoid accepting a “Provisional Sum” (which is flexible and subject to change) as a Unit Rate Item until such time as you are sure of the nature and extent of the work in question.
A “Prime Cost Sum” means a sum provided for work or services to be executed by a nominated sub-contractor or for materials or goods to be obtained from a nominated supplier. In addition the Prime Cost Sum will be subject to an uplift for the Contractor’s attendance and profit. These uplifts are generally not applicable to Provisional Sums.
Hope this helps,
Stuart
www.rosmartin.com
Wed, 2006-03-08 05:41
#3
Hi Stuart
Hi Vishwas,
Well that got my eyebrows up too. I think he means about the total contract value.
Irfan
Hi Vishwas,
Well that got my eyebrows up too. I think he means about the total contract value.
Irfan
Mon, 2006-03-06 14:48
#4
Mon, 2006-02-20 11:37
#5
Hi Vishwas,
Nice to hear from you,
As per our BOQ, some of the items are P.C. for Supply & Fix and the nomination has been done like wise.
Well, presuming the item is P.C., the conditions of Facilities to be provided by the main contractor for crainage and Site Offices,etc. for each P.S. Item as per general provisions is not applicable.
Well does this prove a point.
Waiting for your comment, Habibi.
Irfan
Nice to hear from you,
As per our BOQ, some of the items are P.C. for Supply & Fix and the nomination has been done like wise.
Well, presuming the item is P.C., the conditions of Facilities to be provided by the main contractor for crainage and Site Offices,etc. for each P.S. Item as per general provisions is not applicable.
Well does this prove a point.
Waiting for your comment, Habibi.
Irfan
Mon, 2006-02-20 11:05
#6
1. Yes. You can. The client has the right to re-contract the PS-Items to the Main Contractor in any way he/she wants but the total amount should not vary beyond +/- 15% of the PS-Item Cost.
2. "PC" stands for "Prime Cost". That means, the rate given is for the Material only. Supply & Fix is the Main Contractor’s responsibility, and, he has to add for supply & fix to the PC-Rate.
Cheers
Vishwas
2. "PC" stands for "Prime Cost". That means, the rate given is for the Material only. Supply & Fix is the Main Contractor’s responsibility, and, he has to add for supply & fix to the PC-Rate.
Cheers
Vishwas
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