Quick Answer: What Is A Prime Cost Item?

What is profit and attendance?

The main contractor is permitted to make a profit from the use of nominated subcontractors on site, but must provide “attendance” (usually the provision of water, power, restrooms, and other services to enable the nominated subcontractor to do his job).

Essentially this contractor is employed by the main contractor..

What is a PC sum NZ?

PC sums are where you and / or your builder agree to NOT fix a part of your build contract. Avoid or minimize PC Sums. For example, the excavation cost will probably be a PC sum. If during the excavation, the soil is fund to be sub-standard, additional work may be required and this cost is passed on to you.

What is included in a Daywork rate?

Dayworks in the Construction Industry Daywork is work for which the contractor is paid on the basis of cost of labour, materials, and plant plus an agreed percentage for overheads and profit. Payment in this way is usually reserved for items that cannot be measured and priced in the normal way.

What is the difference between defined and undefined provisional sums?

With undefined provisional sums, the client typically bears the price and scheduling risks. Defined provisional sums are those which have been described in sufficient detail that the contractor is expected to have made allowance for them in their programming, planning and pricing preliminaries.

Are provisional sums included in the contract price?

A provisional sum is usually included as a round figure guess. It is included mathematically in the original contract price but the parties do not expect the initial round figure to be paid without adjustment. The contract usually provides expressly how it is to be dealt with.

What is a normal builder’s fee?

Hire a Home Builder near you! A builder’s hourly rate can vary from $70 to $120. Builder prices may vary depending on your location, the nature of work, and the type of building services you may require.

What is prime cost and provisional sum?

Traditionally, a prime cost is limited to the cost of supplying the relevant item, and does not include the cost of any work that relates to it (such as its installation). In contrast, provisional sums include allowances for both the supply item and all related work to be performed by the contractor.

What is a prime cost sum?

A prime cost sum is the cost of an item that has either not been selected or the price was unknown at the time the contact was entered into. … This will not be included in the specifications because these will only list material and labour for which price and quantity are known.

What does PC sum mean in building terms?

Prime Cost SumThe PC Sum, or Prime Cost Sum, mostly refers to the costs of fixtures and fittings. Your house will need taps, doors, handles, flooring etc and if you’ve ever gone shopping for any of these you would have noticed a large difference in their prices.

What is the difference between a JCT and NEC contract?

JCT provides separate contracts for employer-design or contractor-design. … NEC identifies a state at completion which is defined within the works information, unlike JCT which relies upon a subjective judgement of practical completion determined at the time.

What is a provisional sum?

A provisional sum is an amount of money included in the contract sum to cover work or materials, or both, the extent of which cannot be specifically detailed when entering a contract. Typically, builders will include a PS for sitework costs.

What is a prime cost in a building contract?

In general terms, the ‘prime cost’ is the sum of the direct cost of materials and labour associated with a production process. Adjustments may be permitted to prime costs during the period of a contract to allow for inflation (fluctuations). …

What does PC mean in a quote?

Prime Cost itemsPC stands for Prime Cost items. This is a financial allowance in the contract of a specified sum, to be used to pay for an item such as a bath tub or the appliances.

What is Dayworks in construction?

Daywork is a means by which a contractor is paid for specifically instructed work on the basis of the cost of labour, materials and plant plus a mark up for overheads and profit. It is generally used when work cannot be priced in the normal way.

How much does a contractor make on a house?

General contractors get paid by taking a percentage of the overall cost of the completed project. Some will charge a flat fee, but in most cases, a general contractor will charge between 10 and 20 percent of the total cost of the job. This includes the cost of all materials, permits and subcontractors.

How much should a builder charge to build a house?

For example, in New South Wales, building costs for a “medium standard” house are estimated to be: $1200 to $1600 per square metre for brick veneer.

What is builder’s margin?

What is a builders’ margin? A builders’ margin is usually a percentage of the build cost, not a pre-defined dollar value. Therefore, it can be adjusted if the overall cost of the build changes. While margins may vary between builders, the smallest margin doesn’t necessarily mean the best deal.

What is contract sum?

The contract sum is the price agreed with the contractor and entered into the contract. The agreed contract sum should be calculated and checked very carefully as errors are deemed to have been accepted by both parties. … As a result, contracts generally allow for the contract sum to be adjusted, for example: Variations.