Quick Answer: What Is Provisional Amount?

What is provisional sum in Fidic?

Definition of Provisional Sum by FIDIC Conditions of Contract.

“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 Sub-Clauses 13.5(Provisional Sums)..

What is a provisional sum item?

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.

What is the difference between defined and undefined provisional sums?

With undefined provisional sums, the client typically bears the price and scheduling risks. Defined provisional sums are those which have been described in sufficient detail that the contractor is expected to have made allowance for them in their programming, planning and pricing preliminaries.

What is Prime cost example?

Prime costs are the costs directly incurred to create a product or service. … Examples of prime costs are: Direct materials. This is the raw materials used to construct a product. This may also include supplies consumed during the production of individual units, if such an association can be established.

What is prime cost sum?

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. … This will not be included in the specifications because these will only list material and labour for which price and quantity are known.

What is PC sum in construction?

Prime Cost SumThe PC Sum, or Prime Cost Sum, mostly refers to the costs of fixtures and fittings. Your house will need taps, doors, handles, flooring etc and if you’ve ever gone shopping for any of these you would have noticed a large difference in their prices.

What does the word provisional mean?

providing or serving for the time being only; existing only until permanently or properly replaced; temporary: a provisional government. accepted or adopted tentatively; conditional; probationary. (usually initial capital letter) of or being the wing of the Irish Republican Army that follows a policy of violence.

What means lump sum?

A lump-sum payment is an often large sum that is paid in one single payment instead of broken up into installments. … They are sometimes associated with pension plans and other retirement vehicles, such as 401k accounts, where retirees accept a smaller upfront lump-sum payment rather than a larger sum paid out over time.

What’s another word for provisional?

What is another word for provisional?temporaryinterimprovisionarystopgapactingchangeovercontingentqualifiedtentativecaretaker117 more rows

What does a provisional drivers license mean?

The provisional driving licence gives you permission to drive on the UK roads (excluding motorways), whilst under the supervision of your driving instructor or another driver over the age of 21 who has held a full driving licence for a minimum of three years.

Does provisional sum include profit?

Similarly, when issuing tender documents, principals should specify whether overheads and profit on provisional sums will be treated as being included in the provisional sum allowances, or whether they will be taken to form part of the contractor’s fixed price.

What is the difference between provisional and temporary?

The main difference is that something “TEMPORARY”: is ‘expected’ to come to an end in the PRESENT TENSE. … So something provisional in the PRESENT TENSE is ‘designed’ to come to an end in the future. Something provisional in the PAST TENSE was ‘designed’ to come to an end BUT MIGHT NOT HAVE ENDED.

What’s Prime cost?

Prime costs are a firm’s expenses directly related to the materials and labor used in production. … The prime cost calculates the direct costs of raw materials and labor that are involved in the production of a good. Direct costs do not include indirect expenses, such as advertising and administrative costs.

What constitutes a variation in construction?

A variation (sometimes referred to as a change) is an alteration to the scope of work originally specified in the contract, whether by way of an addition, omission, or substitution to the works, or through a change to the manner in which the works are to be carried out.

What does provisional amount mean?

A provisional sum is an allowance (or best guess), usually estimated by a cost consultant, that is inserted into tender documents for a specific element of the works that is not yet defined in enough detail for tenderers to accurately price.

When would you use a lump sum contract?

When to Use This Type of Contract A lump-sum contract is a great contract agreement to be used if the requested work is well-defined and construction drawings are completed. The lump-sum agreement will reduce owner risk, and the contractor has greater control over profit expectations.

Can a contractor reject a variation?

You are not obliged to carry out any variations that are outside the scope of your contract, unless those variations have been properly instructed in accordance with the terms of the contract. … Refusing to carry out a variation is also not grounds for termination of your contract.

What does PC cost mean?

prime cost sumA 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 …