A prime cost (PC) item is an amount of money included in a contract to purchase a specified item such as tiles, taps, or bathroom fittings. An agreed estimated amount is included at contract signing but the specific products may not be selected until a later stage. A builder must estimate the cost of such items at or above the lowest amount these items could reasonably cost, which must not be understated.
A provisional sum (PS) 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 accurate estimate for site works. However, in some instances, unforeseen events might mean that the provisional sum is exceeded, and this can be added to the contract sum
For all media enquiries please email info@crossconstructions.com.au.
More questions? We’re here for it. Send us an enquiry or call us on 0412 269 545 or email us at info@crossconstructions.com.au