Question

Certain amounts such as water supply fittings, sanitary fittings, door and window fittings, etc. are to be decided by the architect in consultation with his client at some future date. The details of such items are not worked out at the time of inviting tenders, but for execution of such items, a lump sum amount is put up in the bill of quantities. This amount is known as
1. Prime cost
2. Provisional sum
3. Spot amount
4. Deviated cost

Answer 1

Correct Answer - Option 1 : Prime cost

Concept:

Prime cost:

A prime cost is defined as the cost of an item that has not been selected, or whose values are not known at the time a 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. It is used for certain items such as water supply fittings, sanitary fittings, door and window fittings, etc. are to be decided by the architect in consultation with his client at some future date.

Provisional sum:

A provisional sum is defined as 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.

Note: Prime cost applies to items themselves, provisional sums refer to complete works.

Deviated cost:

A Deviation is a difference from baseline, contract basis, or result. A deviation work proceeds in accordance with the Change Management Procedure. Hence, deviated cost is the cost by which estimated cost deviates from the actual cost after completion of the project work.