Provisional Sum Work Clause Samples
The Provisional Sum Work clause defines how certain portions of work, whose exact details or costs are not fully determined at the time of contract signing, are to be handled within a construction contract. It allows for an estimated sum to be included in the contract price for these uncertain items, with the actual cost to be adjusted once the scope and price are finalized, often through later instructions or variations. This clause ensures that projects can proceed without delay despite some uncertainties, while providing a clear mechanism for adjusting the contract sum as more information becomes available.
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Provisional Sum Work. The Provisional Sum Work must be performed under subcontracts entered into by the Contractor. After the PDS Contractor: gives an instruction to proceed with the Provisional Sum Work; and either: provides the Design Documents for the Provisional Sum Work; or gives permission under clause 5.2 to use the design prepared by the Contractor for the Provisional Sum Work, the Contractor must: invite tenders from the number of persons directed by the PDS Contractor, each of whom must be approved by the PDS Contractor; give copies of each tender to the PDS Contractor; and enter into a subcontract with a tenderer on the basis of value for money as directed by the PDS Contractor. After the Contractor is directed to enter into a subcontract for Provisional Sum Work under paragraph (b)(v): the Contract Price will, if the amount tendered by the tenderer with whom the Contractor is directed to enter into a subcontract is more or less than the amount specified in the Contract Particulars for the Provisional Sum Work, be increased or decreased (as the case may be) by the amount of the difference (with no allowance for overhead and profit); and any Variation to that work will be dealt with under clause 10. Clause 7.6 does not apply unless the Contract Particulars state that it applies. The Contract Price will be adjusted in respect of any imported item required for the Works for which: the Contractor lodged the information required by the Tender Schedule; and there has been an exchange rate fluctuation between: the rate lodged by the Contractor as set out in the Tender Schedule; and the rate prevailing at the date upon which the Contractor stated in the Tender Schedule it would pay for the imported item. In these circumstances, the Contract Price will be adjusted by the difference in the cost of the imported item (in Australian dollars) calculated using the information lodged by the Contractor in that Tender Schedule on the basis of: the exchange rate lodged by the Contractor in the Tender Schedule; and the exchange rate prevailing at the date upon which the Contractor stated in the Tender Schedule it proposed to pay for the imported item. The exchange rate in paragraph (d) will be that quoted by the same bank from which the exchange rate in paragraph (c) was obtained. Any imported items (whether subject to adjustment under clause 7.6 or not) will not be subject to adjustment for rise and fall in costs. In clause 7.6, a reference to Tender Schedule means the tender schedule ...
Provisional Sum Work. (Clauses 7.5 and 25.1) Work or Goods Amount Total: $ $ $ $ $ $ Quality Manager: (Clause 25.1) ..................................................................................................... Quality Objectives (additional): (Clause 25.1) ..................................................................................................... Quality Plan (additional): (Clause 25.1) .....................................................................................................
Provisional Sum Work. The work or goods so specified in the Contract Particulars for which the sum of money specified in the Contract Particulars is included in the Contract Price.
Provisional Sum Work. The work or goods so specified in the Subcontract Particulars for which the sum of money specified in the Subcontract Particulars is included in the Subcontract Price.
Provisional Sum Work. (Clauses 7.5 and 22.1) Work or Goods Amount ...................................... $........................................ ...................................... $........................................ ...................................... $........................................ Total: $........................................
Provisional Sum Work. (a) For each item of Provisional Sum Work, the Principal's Representative will give the Contractor an instruction either deleting that item of Provisional Sum Work from the Contract or requiring the Contractor to proceed with the relevant work.
(b) If any item of Provisional Sum Work is deleted from the Contract:
(i) the Contract Price will be reduced by the amount allowed for the item of Provisional Sum Work in the Key Details;
(ii) the Principal may engage an Other Contractor to carry out the item of Provisional Sum Work; and
(iii) the Principal will not be liable upon any Claim by the Contractor arising out of, or in any way in connection with, the deletion of the item of Provisional Sum Work.
(c) If the Contractor is instructed to proceed with an item of Provisional Sum Work and if required by the Principal, the Contractor must progressively prepare the Design Documentation for the item of Provisional Sum Work. The Contractor must inform the Principal's Representative when the Design Documentation is being discussed at design and other meetings and the Principal's Representative may attend all meetings.
(d) Where the Contractor is instructed to proceed with an item of Provisional Sum Work:
(i) the Contract Price will be reduced by the amount allowed for the item of Provisional Sum Work in the Key Details; and
(ii) the Provisional Sum Work will be valued in accordance with clause 11.3 as if it were a Variation.