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Prime Cost sums - definition |
Amy
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#1
09-October-2009
(time:
15:08)
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Posts:
6
Joined:
17-August-2009
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There seems to be a discrepancy between Practice Notes 9.302 and 9.505 in the definition of a Prime Cost sum.
9.302 paragraph 3.1 describes it as a sum for items that does not include contractor's installation costs, margins, overheads or profit. The latter should be a percentage and included elsewhere in the contract price.
9.505 describes it as a material related monetary allowance that provides for purchase and supply of items and includes allowance for "Contractor's Cost and profit", but not installation.
Could you please clarify what a Prime Cost sum is? Thanks!
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Richard Goldie
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#2
25-February-2010
(time:
13:43)
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Moderator
Posts:
5
Joined:
15-June-2009
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This is commonly hard to understand concept- a prime cost sum is defined in NZS 3910:2003 (the most commonyl used contract in NZ I suspect) as: 'Prime Cost Sums may be provided for Materials to be supplied by the Contractor or by a Nominated Subcontractor for incoproration into the Contract Works...' 9.302 would be correct.
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Richard Goldie, Director - Peddle Thorp Architects Auckland
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