In general terms; Instruction Issuance: The client issues instructions for work covered by provisional sums as the project progresses and details become clear. Quotations and Valuation: The contractor provides a quotation for the instructed work. The work is valued based on actual costs, quotations, or pre-agreed rates. Inclusion in Interim Payment Applications: The contractor includes the value of work done under provisional sums in their interim payment applications. Supporting documentation, such as invoices, receipts, and measurement records, is provided. Assessment and Certification: The contract administrator or client’s representative assesses the value of work done under provisional sums. They certify the amount to be included in the interim payment. Adjustment of Provisional Sums: Any variations between provisional sums and actual costs are adjusted in the final account. Unspent provisional sums are deducted from the contract price.
Hello Mukhdoom, So you mean a defined provisional sum? If so, a provisional sum cost is not "set in stone", so as the works go on, you'd compile a cost and pass to the client as an actual cost plus the agreed fee. So yes, it would include any inflation cost as its an actual cost.
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Condingesies money used for what process?
Hello, Sorry can you rephrase the question?
How are the provisional sums valued for interim payments?
In general terms;
Instruction Issuance:
The client issues instructions for work covered by provisional sums as the project progresses and details become clear.
Quotations and Valuation:
The contractor provides a quotation for the instructed work.
The work is valued based on actual costs, quotations, or pre-agreed rates.
Inclusion in Interim Payment Applications:
The contractor includes the value of work done under provisional sums in their interim payment applications.
Supporting documentation, such as invoices, receipts, and measurement records, is provided.
Assessment and Certification:
The contract administrator or client’s representative assesses the value of work done under provisional sums.
They certify the amount to be included in the interim payment.
Adjustment of Provisional Sums:
Any variations between provisional sums and actual costs are adjusted in the final account.
Unspent provisional sums are deducted from the contract price.
@@Metroun this is very clear and detailed explanation thank you very much
Good job Metroun.
What about PC sum?
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Thank you for your lovely comment
If it is additon how do you claim it
This would be under an employer's instruction. So, you'd present your actual costs plus the agreed fee as a submission. Hope that helps?
Can there be inflation on deprived provisional sum
Hello Mukhdoom,
So you mean a defined provisional sum? If so, a provisional sum cost is not "set in stone", so as the works go on, you'd compile a cost and pass to the client as an actual cost plus the agreed fee. So yes, it would include any inflation cost as its an actual cost.