PC & PS items leaving you confused?

According to The Building Contracts Act 1995, a "prime cost item" means an item (for example, a fixture or fitting) that either has not been selected, or whose price is not known, at the time a domestic building contract is entered into and for the cost of supply and delivery of which the builder must make a reasonable allowance in the contract. A common building material pertinent to a PC Item is ‘Tiles’ which is subject to individual taste and choice and ranges considerably in SQM price.

 According to The Building Contracts Act 1995, a "provisional sum" is an estimate of the cost of carrying out particular work (including the cost of supplying any materials needed for the work) under a domestic building contract for which a builder, after making all reasonable inquiries, cannot give a definite amount at the time the contract is entered into. A common building item pertinent to a PS Item is a ‘Garage Door’ which is subject to individual taste and choice and is priced as supply and install item.

Domestic Building Contracts Act 1995 Section 20. Warranty concerning provisional sums

(1) This section applies if a builder enters into a domestic building contract.

(2) The builder warrants that any provisional sum included by the builder in the contract has been calculated with reasonable care and skill taking account of all the information reasonably available at the date the contract is made, including the nature and location of the building site.

Domestic Building Contracts Act 1995 Section 21. Requirements concerning prime cost item and provisional sum estimates

(1) A builder must not enter into a domestic building contract that contains an amount, or an estimated amount, for—

(a) a prime cost item that is less than the reasonable cost of supplying the item;

(b) a provisional sum that is less than the reasonable cost of carrying out the work to which the sum relates.

Domestic Building Contracts Act 1995 Section 22. Details of prime cost items and provisional sums must be set out in writing

If a domestic building contract provides for any prime cost items or provisional sums, the builder must not enter into the contract unless—

(a) in the case of a major domestic building contract, the contract contains a separate schedule for each item or sum that sets out—

(i) a detailed description of the item or of the work to which the sum relates; and

(ii) a breakdown of the cost estimate for each item or sum (showing at least the estimated quantities of materials that will be involved and the unit cost to the builder of the item or sum); and

(iii) if the builder proposes to charge any amount in excess of the actual amount of any increase to the item or sum, how that excess amount is to be determined;

(b) in the case of any other contract, the builder gives the building owner before entering into

the contract a written document that sets out for each item or sum the information

required by paragraphs (a)(i), (ii) and (iii).

 Domestic Building Contracts Act 1995 Section 23. Builder must supply evidence of cost of prime cost items and provisional sums

A builder must give the building owner a copy of any invoice, receipt or other document that shows the cost to the builder of any prime cost item, or that relates to any provisional sum, in a domestic building contract and must do so as soon as practicable after receiving the invoice, receipt or document.