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Lastedited13Jan2016
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Provisionalsum
Aprovisionalsumisanallowance,usuallyestimatedbythecostconsultant,thatisinsertedinto
tenderdocumentsforaspecificelementoftheworksthatisnotyetdefinedinenoughdetailfor

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tendererstoprice.This,togetherwithabriefdescription,allowstendererstoapplymarkupand

Architectsinstruction.

attendancecostswithintheiroveralltenderpriceandmakeallowancefortheworkinthecontract

Attendance.

programme.

Billofquantities.
Constructioncontract.

Anexampleofasituationwhereaprovisionalsummightbeappropriateiswhenworkisrequired
belowanexistingstructure,wherethegroundconditionscannotbedetermineduntiltheexisting
structureisdemolishedandthegroundopenedup.

Contractsum.
Contractsumanalysis.
Equipment.

Provisionalsumscanbe'defined'or'undefined':
Definedprovisionalsumsareconsideredtohavebeenaccountedforwithinthecontractor's
priceandprogramme.Ineffectthecontractoristakingtheriskthattheirestimatewillbe
sufficient.
Undefinedprovisionalsumsarenotaccountedforinthecontractor'spriceandprogramme.
Thismeansthattheclientistakingtheriskfortheworksandthecontractormaybeentitled
toanextensionoftimeandadditionalpayments.

Extensionoftime.

Featuredarticlesandnews
Thefutureofgreeninfrastructure

Provisionalsumsareprovidedforindifferentwaysindifferentformsofcontract,andsome
formsofcontractcanbealittlevagueabouthowprovisionalsumsshouldbehandled,in
particularregardingadjustmentstotheprogramme.

Provisionalsumsplaceeitherthecontractorortheclientatriskofunexpectedcostsordelays.
Agreeingthecostofsuchworkorextensionsoftimethatmightbeclaimedcanresultintension
betweenthecontractorandclient.Forthisreason,theyshouldonlybeusedasalastresort,
theyshouldnotbeaneasyfallbackpositionforconsultants(whoarenotbearinganyoftherisk)
whendesignsareincompleteorinformationisdifficulttoobtain.Therisksaresignificantenough
thattheNECEngineeringandConstructionContract(NEC3)doesnothaveanyallowancefor
provisionalsums.
Howcancitiescreatetherightconditionsfor
Provisionalsumsshouldnotbeconfusedwithprimecostsums,whichareallowancesforthe

greeninfrastructuretogrowsuccessfully?

supplyofworkormaterialstobeprovidedbyacontractororsuppliernominatedbytheclient.
Primecostsumsmightincludeitemsthathavealreadybeenpurchasedbytheclient,suchas
equipment,oraspecificinstallationbyacompanywithastrongexistingrelationshipwithaclient

Newdigitalinfrastructurerequirements

organisation.

Findoutmore
RelatedarticlesonDesigningBuildingsWiki

https://www.designingbuildings.co.uk/wiki/Provisional_sum

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1/7/2017

ProvisionalsumDesigningBuildingsWiki
Architectsinstruction.
Attendance.
Billofquantities.
Constructioncontract.
Contractsum.
Contractsumanalysis.
Equipment.
Extensionoftime.
Finalaccount.
Namedsubcontractor.
NEC3
Preliminaries.
Primecostsum.
Projectprogramme.
Tender.
Tenderdocuments.

Externalreferences
PracticalLawCompany:Asktheteam,whatareprovisionalsums?
(http://construction.practicallaw.com/blog/construction/plc/?p=402)
ExpresswayLtdvCarillionConstructionLtd2006
(http://www.casecheck.co.uk/CaseLaw.aspx?EntryID=12992)themeaningofprovisional
sum.

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