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Lastedited13Jan2016
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Provisionalsum
Aprovisionalsumisanallowance,usuallyestimatedbythecostconsultant,thatisinsertedinto
tenderdocumentsforaspecificelementoftheworksthatisnotyetdefinedinenoughdetailfor
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tendererstoprice.This,togetherwithabriefdescription,allowstendererstoapplymarkupand
Architectsinstruction.
attendancecostswithintheiroveralltenderpriceandmakeallowancefortheworkinthecontract
Attendance.
programme.
Billofquantities.
Constructioncontract.
Anexampleofasituationwhereaprovisionalsummightbeappropriateiswhenworkisrequired
belowanexistingstructure,wherethegroundconditionscannotbedetermineduntiltheexisting
structureisdemolishedandthegroundopenedup.
Contractsum.
Contractsumanalysis.
Equipment.
Provisionalsumscanbe'defined'or'undefined':
Definedprovisionalsumsareconsideredtohavebeenaccountedforwithinthecontractor's
priceandprogramme.Ineffectthecontractoristakingtheriskthattheirestimatewillbe
sufficient.
Undefinedprovisionalsumsarenotaccountedforinthecontractor'spriceandprogramme.
Thismeansthattheclientistakingtheriskfortheworksandthecontractormaybeentitled
toanextensionoftimeandadditionalpayments.
Extensionoftime.
Featuredarticlesandnews
Thefutureofgreeninfrastructure
Provisionalsumsareprovidedforindifferentwaysindifferentformsofcontract,andsome
formsofcontractcanbealittlevagueabouthowprovisionalsumsshouldbehandled,in
particularregardingadjustmentstotheprogramme.
Provisionalsumsplaceeitherthecontractorortheclientatriskofunexpectedcostsordelays.
Agreeingthecostofsuchworkorextensionsoftimethatmightbeclaimedcanresultintension
betweenthecontractorandclient.Forthisreason,theyshouldonlybeusedasalastresort,
theyshouldnotbeaneasyfallbackpositionforconsultants(whoarenotbearinganyoftherisk)
whendesignsareincompleteorinformationisdifficulttoobtain.Therisksaresignificantenough
thattheNECEngineeringandConstructionContract(NEC3)doesnothaveanyallowancefor
provisionalsums.
Howcancitiescreatetherightconditionsfor
Provisionalsumsshouldnotbeconfusedwithprimecostsums,whichareallowancesforthe
greeninfrastructuretogrowsuccessfully?
supplyofworkormaterialstobeprovidedbyacontractororsuppliernominatedbytheclient.
Primecostsumsmightincludeitemsthathavealreadybeenpurchasedbytheclient,suchas
equipment,oraspecificinstallationbyacompanywithastrongexistingrelationshipwithaclient
Newdigitalinfrastructurerequirements
organisation.
Findoutmore
RelatedarticlesonDesigningBuildingsWiki
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ProvisionalsumDesigningBuildingsWiki
Architectsinstruction.
Attendance.
Billofquantities.
Constructioncontract.
Contractsum.
Contractsumanalysis.
Equipment.
Extensionoftime.
Finalaccount.
Namedsubcontractor.
NEC3
Preliminaries.
Primecostsum.
Projectprogramme.
Tender.
Tenderdocuments.
Externalreferences
PracticalLawCompany:Asktheteam,whatareprovisionalsums?
(http://construction.practicallaw.com/blog/construction/plc/?p=402)
ExpresswayLtdvCarillionConstructionLtd2006
(http://www.casecheck.co.uk/CaseLaw.aspx?EntryID=12992)themeaningofprovisional
sum.
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