What is Prime
Cost Sum in Construction Contracts?
|Civil Engineering Home|
generally is an allowance for articles to be provided by the contractor, of
which price cannot be fixed at the time of tender. It refers only to the
supply of materials and not to the carrying out of works. A specific amount
will be earmarked in the BOQ for execution of such items. Examples are
fixtures and finishing works like ceramic tiles, sanitary fittings, water
supply fittings etc. that can be decided only at the time of execution.
Contractor is not entitled for any profit on prime cost items, but sometimes
the cost of carriage will be provided if specified in contract. The FIDIC
Conditions of Contract do not mention about prime cost.
More Articles in Civil Engineering
Are Contractors Entitled for Variations in Lump Sum Contracts? - Read Article
What is Day Work in Construction Contracts? - Read Article
How to Calculate Earthwork Volume Using Simpson's Rule? - Read Article
What is Contingency Allowance in a Construction Contract? - Read Article
What is Clause 14 programme? - Read Article
What is FIDIC? - Read Article
What is Prime Cost Sum in Construction Contracts? - Read Article
What is Provisional Sum in Construction Contracts? - Read Article
What is TOR Steel? - Read Article
Search engine keywords