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Provisional sums are incorporated into the BOQ’s describe with

examples both formats and explain the contractual implications of both


client and contractor.
Defined and un-defined works are both forms that can be seen within BOQ’s.

Defined works relate to those identified but not fully designed, containing enough
information to allow the contractor to include within planning, pricing and
programming of the preliminaries.

The contractor must allow for these items as there are no claims for extension of
time or additional costs through delays caused by defined works.

For defined to qualify the bill item must give information about the nature and
construction of the work, how and where the work is fixed to the building and what
other work is fixed thereto, a quantity or quantities indicating scope and extent and
also any specific limitations and or requirements.

Only if the architects instructions are delivered late, then therefore the contractor can
make claims for extensions of times/additional costs.

This could also have an impact on the client in terms of risk of delivery, budgets and
even dispute resolutions.

Un-defined works are those that can be foreseen however no information is


available or cannot be measured under the rules of measurements (NRM2)

As this is the case then claims for additional costs and extensions of times can occur
as they cannot be expected to be planned, priced or programmed.

However unforeseen works can provide greater risks to the existing programme,
becoming conflicting with trades already on site while the client will only be at risk of
delivery as from the undefined provisional sum highlighted within the bill can factor in
contingencies to lessen the impacts of financial risks.

Or

A provisional sum is an allowance, usually estimated by the 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 price. This, together with a brief description, allows tenderers to apply
mark up and attendance costs within their overall tender price and make allowance for the
work in the contract programme.

An example of a situation where a provisional sum might be appropriate is when work is


required below an existing structure, where the ground conditions cannot be determined until
the existing structure is demolished and the ground opened up.

Provisional sums can be 'defined' or 'undefined':


 Defined provisional sums are considered to have been accounted for within the
contractor's price and programme. In effect the contractor is taking the risk that their
estimate will be sufficient.
 Undefined provisional sums are not accounted for in the contractor's price and
programme. This means that the client is taking the risk for the works and the
contractor may be entitled to an extension of time and additional payments.

Provisional sums are provided for in different ways in different forms of contract, and some
forms of contract can be a little vague about how provisional sums should be handled, in
particular regarding adjustments to the programme.

Provisional sums place either the contractor or the client at risk of unexpected costs or delays.
Agreeing the cost of such work or extensions of time that might be claimed can result in
tension between the contractor and client. For this reason, they should only be used as a last
resort, they should not be an easy fall-back position for consultants (who are not bearing any
of the risk) when designs are incomplete or information is difficult to obtain. The risks are
significant enough that the NEC Engineering and Construction Contract (NEC3) does not
have any allowance for provisional sums.

Provisional sums should not be confused with prime cost sums, which are allowances for the
supply of work or materials to be provided by a contractor or supplier nominated by the
client. Prime cost sums might include items that have already been purchased by the client,
such as equipment, or a specific installation by a company with a strong existing relationship
with a client organisation.

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