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Tech Talk- PC and PS Items, what you need to know.

Tech Talk- PC and PS Items, what you need to know.

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Last week we looked at comparing quotes, today we are going to go look at PC and PS items, what they are, why they are used and what they mean for you.

PC or a Prime Cost Item, is the financial allowance in the contract for the supply of an item, for example a bath, that has not yet been selected. Because the homes we work on are so varied, we don no have a specified range for a client to select from. This allows the client more scope of choice. Having a Prime Cost allowance, means our clients know exactly how much money they have to spend within their contract and any spent on selections over that figure is an added cost. In our experience, this keeps the selection process open and simplified for both builder and client.

PS or a Provisional Sum, is a financial allowance in the contract, generally for bigger items, for the cost of the foreseeable work, for example a kitchen which includes both materials and labour. Because kitchens vary so greatly, this give our clients an idea of where they stand come selection time. As with if a more expensive kitchen than the allowance is chosen, our client is required to pay more, if the kitchen chosen is less expensive, and refund will be given. Having a Provisional Sum gives both builder and client a transparent starting point and a little flexibility within the contract.

Have you heard the terms Prime Cost and Provisional Sum before?

Nicole xx

 

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6 Comments

  1. Yes, Provisional sums are used all the time in commercial work. It’s usually an estimate for works that need to be done but haven’t received quote for – like x-raying a slab before the core holes are drilled or getting an engineer to pre-approve core holes through a slab. Prime Cost item – usually we are told what fixtures the clients wants and can price these accordingly. This is a good article for people who are looking to build a house – what to look for when looking at the contract. 🙂

    1. Thank you Bec, it took me a while to be able to wrap my head around the differences of PC and PS, so glad to be able to share what I am learning. 🙂

  2. […] your neighbours have. I have talked before about PC and PS items and how they impact this process here, and this is the process we use […]

  3. […] on the clients behalf. This excludes anything within the contract. Say for example, you are given a PC allowance for your oven of $1000, but the one you really, really want is $2000, the builder is allowed and […]

  4. […] be quite a confusing time when confronted with so many new terms and a whole new language. There are two we receive the most questions about, so I thought it a good time to run through them […]

  5. […] misunderstood words or terms used include PC and PS figures. I have explained in depth in this post, however these are allowances for items (such as a bath tub) or for services (Such as a kitchen) […]

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