Definition of prime cost by ice institution of civil engineers, great britain prime cost pc item means an item in the contract which contains either wholly or in part a sum referred to as prime cost pc which will be used for the execution of work or the supply of goods materials or services for the works. Importance and functions of bills of quantities in the. What is a prime cost sum and how does it differ from a provisional sum. Preparation of bill of quantities preparation of bill of quantities subdivision of bill of 1 the bill of quantities is to be divided as appropriate into separate quantities levels of identification, in the sequence set down in table 1. The following abbreviations may appear in the bill of quantities. A nominated subcontractor is often appointed after the main contractor has started work, so one of the client benefits is that specialist design can continue after work has commenced on site. Pdf variability analysis of prime cost sums researchgate. Sum 1 g allow a provisional sum of kenya shillings five hundred thousand kshs.
The work included in the item is defined in detail by the rules in the method of measurement. The bill of quantities is compiled in accordance with the. There are several factors that cause these deviations between the final accounts and the contract sum. A bill of quantities is a document used in tendering in the construction industry in which materials, parts, and labor and their costs are itemized. Rics professional guidance, uk interim valuations and payment. The use of lump sum bills of quantities contracts for civil. The use of lump sum bills of quantities contracts for. The builder must make a reasonable allowance in the contract for this item. 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. Construction measurement iii sbq3314 prime cost sum.
A provisional sum is an allowance in the contract for the cost of foreseeable necessary work, including the supply of materials not fully described or detailed at the time that the contract commenced. Importance and functions of bills of quantities in the construction industry. Summary a provisional sum is a sum of money included in the contract by the employer, normally as an amount in the bills of quantities or list of. Associate professor of quantity surveying, nau, awka, anambra state nigeria. Provisional sum contractors best estimate of cost of providing the contracted service. Bill no 17 painting bill no 18 prime cost section 3 site works. V8 manufacturing and installing the plaque containing the year of constuction.
Construction of septic tank and sssociated plumbing works 1 item sub total d add. Mar 09, 2020 prime cost refers to a manufactured products costs, which are calculated to ensure the best profit margin for a company. Sum 1a 19 allow lump sum for providing following necessary. Rate to include for back filling pits with available earth. The practice historically of estimating building costs in this way arose from noncontractual measurements, taken off drawings to assist tenderers in quoting lump sum prices. Quantities lump sum document the consultant quantity surveyor project manager must ensure that the clauses that have been modified by the department in this section are identical to those reflected in clause 42. A bill of quantities boq is an itemized list of materials, parts, and labor with their costs required to construct, maintain, or repair a specific structure. The use of bills of quantities in building contractor. Prime costs and provisional sums master builders wa. Prepare tender documents ptpo 4 invitation and receipt of tender pt. 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. The difference between a prime cost sum and a provisional sum.
Most building contracts are called fixed price contracts, but the final contract sum can vary due to fluctuations in pc and ps items. Variability analysis of prime cost sums civil engineering dimension. Construction site safety manual in relation to safety management. Bill of quantities boq business free 30day trial scribd. Deviations between contract sums and final accounts.
Provisional sum means a sum if any which is specified in the contract as a provisional sum, for the execution of any part of the works or for the supply of plant, materials or services under subclauses. The asaqs preliminaries for use with the jbcc edition 6. A prime cost sum is the cost of an item that has either not been selected or the price was unknown at the time the contact was entered into. Jun 28, 2012 prime cost items published in project managment when a nominated subcontract is intended but not yet chosen, a prime cost item can be inserted in the bill of quantities by the engineer to cover the work andor materials to be supplied by the nominated subcontractor. Feb 27, 2020 the difference between a prime cost sum and a provisional sum designing buildings wiki share your construction industry knowledge. The cost of installation of the tiles will need to be calculated separately based on the area shown or nominated in the contract documents and the cost of installation including any fixing materials, grouting, supervision and margins etc. Price to include preparation, work on the site, results processing and report drafting. Prime cost sums or provisional sums are included in the contract sum2. It specifically evaluated the impacts of prime cost sums and.
Prime cost items are often similar to provisional sums. Payment to the contractor is on the basis of the actual work carried out at rates agreed in the contract. They both relate to estimates made for certain costs in the absence of exact figures. Administration of provisional sumsrefer flowchart 20. Direct materials include all tangible components of a product. In our contracts the price is usually paid in stages, which may be subject to a price fluctuation. All prime cost amounts are for materials and goods. There are few different things that can cause costs to blow out on building or renovation project but two of the most common culprits are prime cost pc and provisional sum ps allocations.
A prime cost sum is included within the main contractors tender document a bill of quantities or specification of work. A content analysis article pdf available march 2016 with 9,382 reads how we measure reads. Prime cost items shall be inserted in the bq to cover works carried out by. The units of measurement indicated in the bill of quantities are metric units. For pure lump sum contracts the contractor undertakes to carry out a defined amount of work in return for an agreed price. Bill no 17 painting bill no 18 prime cost section 3 site works section 4 budgetary allowances and provisional items. The only difference is before signing the contract exact cost of the prime cost item should finalise. Include the estimated quantities of materials if any, unit costof those materials, addedestimated labour cost, and other costs equipment e. Provisional sum need not be always allocated specifically for a single task. The quantities given are thus generally not suitable for the ordering of materials.
In other words, these expenses are directly incurred to create finished goods. General summary 2 purposes of bills of quantities the bills of quantities are in use to the construction team for different purposes at different stages and it is used in different ways. Plaque to be made of brass of dimensions 2103004mm. How these factors combine to cause deviations between the contract sum and. The rics new rules of measurement nrm is a suite of documents issued by the rics quantity. A prime cost is an expenditure that directly relates to the production of finished goods. An amount bidded for an item, the extend of which is describe0d in the bill. The sum tendered in the bill of quantities for any preliminary and general item shall cover the contractors direct and overhead costs, profit and all other costs for the provision of the item andor. The use of lump sum bills of quantities contracts for civil engineering works 1. Provisional sumdayworkslegislative changes in construction. Cost estimation is particularly difficult, often leading to considerable deviations. 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. During the prefeasibility stage the consultant setup a preliminary unit cost data base and carried out the cost estimates for.
Prime cost sum designing buildings wiki share your construction industry knowledge. Most projects operate a payment system based on monthly payments to the contractor. The provisional sum for contingencies, which has been included in the contract sum to cover the cost of variations and of works which could not be entirely foreseen at the time the tender documents are issued, is first omitted from the contract sum. Payment of materials will be prime cost including cost of delivery to site. Sum 1 provisional sums e allow a provisional sum of kenya shillings three hundred thousand kshs. The use of table 1, level 4 subheading is optional dependent on. It also ideally details the terms and conditions of the construction or repair contract and itemizes all work to enable a contractor to price the work for which he or she is bidding. Prime cost amounts association of south african quantity. Due to the rework involved in the posttender use of.
Description unit quantity rate amount preliminary and general items 1. The bills also provide a measure of the extent of work and this allows the work to be priced. Allow 15% of the above subtotal for contingencies to be spent as the employer or employers representative may direct and to be deducted in whole or in part if not required sub total e. Jan 08, 2020 difference between prime cost sum and provisional sum items. Prime cost sums and provisional sums on project cost performance. A lump sum tender price based upon the priced bills of quantities is normally tendered in competition by a preselected list of between three and six contractors. Any sum s added to or deducted from this total will be treated as a percentage on or off the prices in this bill of quantities excluding preliminary items, prime cost and provisional sums and the rates to any variation will be based on rates arrived at after being subjected to such. Provisional and prime cost sums professional practice for. As an example client has a nominated supplier for a specific item. This paper investigated the variability levels of prime cost sums in building projects in order to establish the reliability of such estimates in bills of quantities. It is a document used in tendering in the construction industry in which materials, parts, and labor and their costs are itemized. Preliminaries preambles prime cost and provisional sum measured works provisional quantities day works labour, material and plant brief explanation of.
Items or components of work for which exact requirements and quantities are not known at the time of tendering. Tabulated rules of measurement for building works 41. The prime cost calculates the use of raw materials and direct labor, but. Atkinson december 2000 nature of bills bills of quantities comprise a list of items of work which are briefly described. Bill of quantities bq has existed and developed over 300 years miliken, 1996. Provisional sums are included in bills of quantities for items of work which cannot be fully described or measured in accordance with the rules of the method of measurement at the time of tender. Such sum shall be deemed to be exclusive of any profit required. If you want a particular standard of fittings or specific brands or models, make sure your contract is very clear about that. A prime cost sum is the cost of an item that has either not been selected or the. The value of monthly payments is estimated by a site measure validated by the quantity surveyor, certified by the contract administrator and paid within a stated time by the. The difference between a prime cost sum and a provisional. 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 subcontractor 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. A prime cost sum pc or pc sum is an allowance, usually calculated by the cost consultant, for the supply of work or materials to be provided by a 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 pc sum must be a reasonably accepted price for that item which is generally based on the builders past experience and the clients budget.
A prime cost sum pc or pc sum is an allowance, usually calculated by the cost consultant, for the supply of work or materials to be provided by a 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. Sums the prime cost sums, which have been included in the contract. For the definition of a provisional sum refer to condition 1 of the general conditions of this contract. Selection of a contractor is made on the basis of the tenderer pricing measured bills of quantities, prepared to standard rules of measurement, for example. Subsequent to this, it is widely used for posttender work such as. Prime cost sum edit introduction a prime cost sum pc or pc sum is an allowance, usually calculated by the cost consultant, for the supply of work or materials to be provided by a 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 prime purpose of the bill of quantities bq is to enable all contractors tendering for a contract to price on exactly the same information. Prime cost sums or provisional sums are included in the contract sum 2. Provisional quantities fmpedia wiki knowledge library. Pdf importance and functions of bills of quantities in. A prime cost item is an allowance in the contract for the supply of necessary items not yet finally selected, for example taps or door furniture. But the client has not finalized the budget with the same.
Pdf introduction to quantity surveying laki emmanuel. If the contractors actual cost is higher than the bill of quantities allowance, then the contract sum will be increased to balance it up and if the. For capital projects, especially transport infrastructure projects, deviations hover around an average of 28% of the estimated cost. March 2009 201 flowchart description action by reference 1. Prime costs consist of direct materials and direct labor. This will not be included in the specifications because these will only list material and labour for which price and quantity are.1353 1343 1554 674 1340 1121 1006 546 40 634 1451 1240 15 59 1445 1478 1484 1244 975 1163 1632 1344 1102 94 960 283 519 427 1409 1019 353 257 1337 1547 1068 1270 620 414 563 1391 239 1348 971 511