Monetary Allowances

"PC" + "PS" Sums are an estimate of a cost that could not be determined at the time of contract.
 
There are actually two different "PC" terms-  “Provisional Sum” and “Prime Cost Sum”.  Although the Master Build contract properly defines the meaning of these terms, it is generally accepted that “Provisional Sum” refers to an amount that is an estimate for particular works but the extent of those works has not yet been specified. 

Provisional Sum (PS)

A "Provisional Sum" refers to particular works where there is an “unknown” factor in respect of the works.  Excavation works are an example.  The extent of the excavation that is required is often not known until the excavation is commenced and to a large extent is outside either parties’ control. 

Prime Cost Sum (PC)

 A “Prime Cost Sum” refers to an amount for works or goods that is to be spent at the instruction of the owner.  For example, the builder may make an allowance for certain bathroom fixtures in the contract but the homeowner may want different bathroom fixtures than those allowed. In contrast to a "Provisional Sum", the homeowner will have some ability to control the amount of a "Prime Cost Sum".

The final cost of "PC" + "PS" items will affect the overall price of the building contract even when the contract has a fixed price.

Welcome Homes endeavours to minimize the use of "PC" + "PS" Sums" to Excavation, Engineering, and Council Fees only.

All reasonable skill and care is undertaken in any estimate by considering the type and extent of the work and comparable costs on previous projects. 

You need to be very cautious when entering into a building contract with a number of "PC" + "PS" items as it may be an indication that the end price will possibly overrun budget.

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