Category: Quantities & pricing
Prepared by Eng. Ahmed Fathy, Projects Manager ·
Definition
A provisional sum is an amount placed in the BOQ for work not fully defined at tender, such as chandelier selection or works to be decided later, and is spent only on the owner's or consultant's instruction.
Why it matters on a project
It lets the project go to tender before every detail is settled, but too many of them leave the final cost unknown.
Measurement and pricing
Spent only on written instruction and adjusted to actual cost, with unused amounts deducted.
Worked example
A provisional sum of 50,000 SAR for chandeliers with an actual cost of 42,000 SAR: 8,000 SAR is deducted from the contract, plus any agreed overhead and profit adjustment.
Common mistake
Treating a provisional sum as a guaranteed part of the contract value for the contractor.
Frequently asked questions
What is the difference between a provisional sum and a contingency?
A provisional sum covers known work not yet defined; a contingency covers unforeseen risks.
Does the contractor add profit to a provisional sum?
It depends on the contract; often overhead and profit on it are priced as a separate item.
Related terms
- Bill of quantities (BOQ)A list of work items with description, unit and quantity, priced item by item.
- Variation order (VO)A written instruction changing scope, quantity or specification, with its price and time effect.
- Engineer’s estimateThe cost estimate prepared by the consultant or owner to compare contractor offers.
- Payment application (IPC)A periodic payment request based on approved progress and executed quantities.
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