Category: Quantities & pricing
Prepared by Eng. Ahmed Fathy, Projects Manager ·
Definition
A prime cost sum is an amount the designer puts in the BOQ for a supply not yet selected, such as decorative lighting or sanitary fittings. The contractor prices installation and profit on it, and the amount is adjusted to the actual price.
Why it matters on a project
It lets a tender go out before every material is chosen, but it must be realistic or it becomes a large gap in the final account.
Worked example
A 40,000 SAR prime cost sum for lighting with 10% contractor profit: 4,000 SAR is added, 44,000 SAR in the BOQ, then adjusted to the actual invoice.
Common mistake
Setting a very low prime cost sum so the tender looks cheaper, then surprising the owner with a large difference at selection.
Frequently asked questions
Prime cost sum or provisional sum?
Prime cost is for a defined supply chosen later; provisional covers undefined work that may be needed.
Who chooses the material?
The owner or consultant; the contractor supplies it at the actual price.
Related terms
- Provisional sumAn amount included in the contract for work not yet defined, spent on actuals.
- Bill of quantities (BOQ)A list of work items with description, unit and quantity, priced item by item.
- Final accountThe final financial settlement of the contract value after completion.
- Sanitary wareWCs, basins, mixers, showers and accessories.
Read next
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