What is a Provisional Sum?
A provisional sum is an estimated allowance included in a construction contract to cover the cost of work or materials that cannot be precisely defined at the time of signing. This provision allows for flexibility and ensures that the project can proceed smoothly even when certain details are not fully determined.
Legal and Practical Considerations
Legally, provisional sums must be clearly outlined in the contract, specifying the nature of the work or materials they cover. This clarity helps in avoiding disputes and ensures transparency between the contractor and the client. Practically, provisional sums provide a buffer for unexpected costs, allowing the project to adapt to changes and new information as it becomes available.
Common Scenarios Requiring Provisional Sums
Provisional sums are commonly used in various scenarios within construction projects. Here are some typical examples:
- Landscaping and External Works: Often, the exact landscaping requirements are not finalised at the outset, necessitating a provisional sum to cover potential costs.
- Specialised Fixtures and Fittings: Custom fixtures or specialised equipment that have not been selected or specified at the time of contract signing often require provisional sums.
- Utility Connections: Costs associated with connecting utilities such as water, gas, and electricity can be uncertain, making provisional sums necessary.
- Interior Finishes: Elements like bespoke cabinetry, unique flooring options, or specific wall treatments may be included as provisional sums until detailed specifications are provided.
Using provisional sums in these scenarios ensures that the project can continue without delays, even when certain details are yet to be finalised.
For a more comprehensive understanding of provisional sums, including detailed examples and best practices, you can visit our article here Comprehensive Guide to Provisional Sums in Construction.
Conclusion
Understanding what a provisional sum is in construction and its definition is essential for managing project budgets effectively. Provisional sums provide the necessary flexibility to handle unforeseen expenses and ensure the smooth progression of the project. By clearly defining provisional sums in the contract and using them appropriately, both contractors and clients can avoid potential disputes and ensure successful project completion.
