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PRIME COST:- Is the cost of an item that has either not been selected or the price was unknown at the time of tender, The contractor must make a reasonable allowance in the contract for this item, This will not be included in the specification because these will only list material and labour for which price and quantity are known.
If the PC sum in the contract is higher than the item the contractor will pay the client the difference, If the price of the item chosen is greater than the PC sum the client will pay the contractor any difference plus a profit margin as stated in the contract.
PROVISIONAL SUM:- It refers to a price for work that may not be required or whose scope is undefined, In either case, The parties do not try to price it accurately and simply include a(provisional sum).
SELECTIVE TENDERING:- A process of competitive tendering for award of the contract for construction where by the owner selects the constructors who are invited to tender to the exclusion of others , as in the process of open tendering.
