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?