What Are Provisional Sums?
Did you know what this commonly used contract term means?
Provisional Sums & Common Examples
Provisional sums are incorporated into fixed price renovation and construction contracts as a cost estimate for items of work or materials that cannot be sufficiently defined or detailed at the time of entering the contract.
An accurate determination of cost cannot be allocated to some renovation elements, as the extent of work is not yet known.
A common example of a provisional sum item is earthworks, where the soil conditions are unknown. Other instances can include tiling and concreting.
Future Changes & Client Briefs
If further, unanticipated work is required or the cost increases, a variation will be issued to detail the relevant changes to contract.
Provisional sums are effective and beneficial to home owners, as it allows them to enter into a contract and commence project works, despite the cost of specific items being not yet finalised.