Tute 4 (Melany)

Question 1

What care should be taken when using Prime Cost and Provisional Sums?

Answer 1

• Confirmation on whether the PC and Prime sums include all relevant materials and work associated with installation, or cost of the supply alone.
• Confirmation that the contractor has allowed for installation of the Prime Cost Sum.
• Confirmation that costs include builder’s margins.
• Long lead times
• Late selection could result in a variation, abortive work or delays at extra cost.

Question 2

What % design contingency sum does Nicole recommend during the concept design phase?

Answer 2

30%

Question 3

What are the 3 ways that architects can charge fees?

Answer 3

• Fixed Fee
• Percentage
• Hourly Rate

Question 4

Define ‘Contingency Sum’.

Answer 4

A % amount of money included in a project budget to allow for unknown or unresolved aspects of a design.

Question 5

Describe the 2 ways that a contingency sum can be integrated into the project?

Answer 5

1) Within the Contract.

A contingency sum is sometimes included within the contract. In these instances, they are expended only by written instruction by the client.

2) Outside of the Contract.

Some clients prefer contingency sums to remain outside of the contract, and instead form part of the project cost. These costs should still be available for the architect to expend if required. This strategy means that the contractor isn’t entitled to margin on top of the contingency, and doesn’t see it as an opportunity to request variations.

Question 6

At the time of construction, describe the contingency sums for both new builds and additions and alterations.

Answer 6

3 - 5% of the estimated cost of works for new builds.

Up to 10% of the estimated cost of works for additions and alterations.