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Provisional Sum

Discussion in 'Development' started by Blackmores, 25th Feb, 2016.

  1. Blackmores

    Blackmores Member

    Joined:
    29th Sep, 2015
    Posts:
    24
    Location:
    Melbourne
    Hi guys, I am just going through some building contracts and just wanted to ask a quick question. Are the Provisional Sums on the HC-6 contract included in the overall contract cost?

    For example, if the contract value on the progress payment page is $250k (100%) and $15k is listed for demolition and landscaping under provisional sum. Is this $15k included inside the $250k? Or is it essentially $250k + $15k = $265k.

    Assuming final cost of landscaping and demolition is $10k instead of $15k. Does that mean my contract overall value is $250k + $10k = $260k OR $250k - $5000 = $245k. Sorry if this is confusing. Thanks!