Prime Cost definition

Prime Cost. Is a specific type of Provisional Sum where payment is made on the production of invoices showing the cost price of the implementation or installation of the service required. Services rendered in this manner carry a cost for which a rate or a lump sum is offered at tender stage to cover all the tenderer’s handling, supervision and liability costs in providing the item or services.

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Prime Cost items in the specifications are for goods to be obtained by the Contractor under such conditions as the Employer shall instruct. Such goods shall be fixed by the Contractor and shall at the settlement of the accounts be dealt with as follows: The contract sum shall be adjusted by omission of all such Prime Cost amounts, and the addition of the sums actually paid by the Contractor in respect thereof, but excluding any trade discount or allowances. Where the Contractor has incurred expense for special packing or special carriage, it shall be allowed for the same as part of the sums actually paid by it, The same shall apply to provisional amounts dedicated to artists and nominated sub-contractors. The Contractor shall permit the execution of work, not provided for in the specifications, by artists, craftsmen, or other like specialists engaged by the Employer. Every such person shall be deemed to be a person for whom the Employer is responsible and not to be a nominated sub-contractor.

Prime Cost means the fee set out at Appendix A annexed at Part 1 of the Schedule;

Examples of Prime Cost in a sentence

Item Provisional Bills of Quantities (B2.2) N/A Prime Cost Amounts, Budgetary Allowances, Provisional Amounts, etc., contained herein may be omitted or reduced at the Principal Agent's sole discretion and the Contractor shall not be entitled to claim for any loss by way of reduction or omission of any discount, or percentage relating to Prime Cost Amounts, Budgetary Allowances, Provisional Amounts, etc., or loss of profit related thereto.
Each item shall be priced and extended to the "Amount" column by the Tenderer, with the exception of the items for which only rates are required, or items which already have Prime Cost or Provisional Sums affixed thereto.
Provided that for Prime Cost Sums only, where a percentage mark-up or lump sum mark-up is tendered, which shall exclude profit.
The Contractor cannot seek payment for the Prime Cost Item, or the contracted service covered by the Provisional Sum, until the progress claim following the incorporation of the item in the Works or following the completion of the said contracted service.
The term "Prime Cost Sum" or "P.C. Sum" wherever used in these Bills of Quantities shall have the meaning stated in Section A item A7 (ii) of the Standard Method of Measurement mentioned in Condition No. 16 of the conditions of Contract.

More Definitions of Prime Cost

Prime Cost or abbreviation “P.C. Sum”means a sum for works or services to be executed by a Nominated Sub-Contractor or sums for materials or goods to be obtained from a Nominated Supplier;

Prime Cost means the first net cost of materials and labour of construction and the usual decorations only estimated at the current prices as at the date of these presents and is to be exclusive of the costs of garage detached outbuildings and fencing.

Prime Cost in this Agreement shall mean the costs ascertained in accordance with the definition contained in Schedule 1 hereto.

Prime Cost means the costs ascertained in accordance with the definition contained in the Schedule 1 hereto.

Prime Cost for each SKU will be calculated by multiplying the number of units of that SKU (as set out in the Stock Count Record) by the prime cost per unit of that SKU as set by the Seller at the beginning of 2012.

Prime Cost means the cost of raw materials, labour, transport and energy incurred by the Company in relation to that class of Products; and

Prime Cost means the estimated cost of an item (e.g. a fixture or a fitting) which, when the Authority to Proceed was signed by You, either had not been selected by You in connection with the Scope of Works or its price was not known yet. “Property” means the property on which Works are to be completed, as specified in the Scope of Works.