A Prime Cost Sum (PC Sum) is an allowance included in a bill of quantities or contract for work or materials to be provided by a nominated subcontractor or supplier, where the actual cost is not known at tender stage.
Definition
According to NRM 2, a prime cost sum is defined as a sum provided for work or services to be executed by a nominated subcontractor, a statutory authority, or a public undertaking, or for materials or goods to be obtained from a nominated supplier.
Common Uses
Prime cost sums are typically used for:
- Specialist mechanical and electrical installations
- Lift installations
- Kitchen equipment
- IT and AV systems
- Artwork and specialist finishes
Contractor Entitlements
In addition to the PC sum, the main contractor is entitled to add:
- Profit – Usually a percentage on the PC sum value
- Attendance – For providing facilities to the specialist contractor (general and special attendance)
PC Sum vs Provisional Sum
- PC Sum – For defined work by a specialist, where scope is known but price is not
- Provisional Sum – For work where scope and price are both uncertain
Related Terms
See also: Bill of Quantities, Subcontractor Costs, Provisional Sum
