1/7/2017

PrimecostsumDesigningBuildingsWiki

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Lastedited02Oct2016
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Primecostsum
Aprimecostsumisanallowanceusuallycalculatedbythecostconsultantforthesupplyof
workormaterialstobeprovidedbyacontractororsupplierthatwillbenominatedbytheclient.

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Theallowanceisexclusiveofanyprofitmarkuporattendance(suchasmaterialhandling,

Attendance.

scaffoldingandrubbishclearanceetc)bythemaincontractor.

Billofquantities.
Consequentialloss.

Paymentsaremadebasedonthequotations/invoicesofthesupplieditemsbythecontractor
plusadditionofreasonable/agreedpercentagesforoverheadcostsandprofits.Ifthe
contractor'sactualcostishigherthanthebillofquantitiesallowance,thenthecontractsumwill
beincreasedtobalanceitupandifthecosttothecontractorislower,thenthecontractsumwill
bereducedbythebalance.

Contractconditions.
Contractsum.
Finalaccount.
Finalcertificate.
Nominatedsubcontractor.

Thecontractorshouldmakereasonableprovisionswithintheirpriceforprimecostsums,
however,thesecanproveinadequate,andsoprimecostsumscanbeasourceofincreased
costsandsodisputes.

Featuredarticlesandnews
Primecostsumshavebecomelesscommoninrecentyearsasthenominationprocesshas
fallenoutoffavourwithclients.

Thefutureofgreeninfrastructure

Historicallynominatedsubcontractorsorsupplierswereselectedpriortotheappointmentofa
maincontractorforoneofthreereasons:
Forlongdeliveryitemswheredesignandmanufacturingtimescouldnotwaitforthe
appointmentofamaincontractor.Forexample,lifts,switchgearorrefrigerationplant.
Wherespecialistdesigninputwasrequiredintheearlystagesofdesigndevelopment.For
example,foracladdingsystem.
Wheretheclientdirectlyordersapreferredpieceofequipmentonwhichdesignistobe
based.Forexample,anMRIscanner,laboratoryfumecupboardsorbottlingplant.
Itshouldbenotedthatcourtshavegenerallytakentheviewthatriskinrelationtothe
performanceofanominatedsubcontractorlieswiththeclientandnotthecontractor.This
meansthatdelaytotheoverallprogrammecausedbyanominatedsubcontractorcanleadtoa

Howcancitiescreatetherightconditionsfor

claimforextensionoftimeunderthemaincontractandentitlementtoconsequentiallosses.

greeninfrastructuretogrowsuccessfully?

Primecostsumsshouldnotbeconfusedwithprovisionalsumswhichareallowancesforspecific
elementsoftheworksnotyetdefinedinenoughdetailforcontractorstoprice.

Newdigitalinfrastructurerequirements

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RelatedarticlesonDesigningBuildingsWiki
Attendance.

https://www.designingbuildings.co.uk/wiki/Prime_cost_sum

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1/7/2017

PrimecostsumDesigningBuildingsWiki
Billofquantities.
Consequentialloss.
Contractconditions.
Contractsum.
Finalaccount.
Finalcertificate.
Nominatedsubcontractor.
Outturncost.
Provisionalsums.
Preliminaries.
Subcontractors.
Variations.

ApprovedDocumentR:Physicalinfrastructure
forhighspeedelectroniccommunication
networks,comesintoforce.

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imlookingfor3typesofprimecostsumcananyonehelpmeout?
1.AnItemthathasnotbeenselectedatthepointoftendering.
2.Anitemthathasbeenselected,butithasnotbeenpossibletogetaprice.
3.Workundertakenbyanominatedsubcontractor.

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