Consumer Building Guide NSW- Prime cost items
Prime Costs and Provisional Sums. Prime Cost (PC) items and provisional sums (PS) are two items in a standard building contract that cause great confusion among homebuyers or homeowners. Most building contracts are called “fixed-price contracts”, but the final contract sum can vary due to fluctuations in PC and PS items.
Prime cost items are specified fixtures or fittings such as kitchens, hot water services, toilet suites, vanities, taps etc., that are required to complete the building work. Also can vary in price and are listed as a PC item with e.g. $100.00 AUD per square metre.
The cost listed against each item may be subject to a variation at a later date once the item has been selected and approved by the homeowner and builder.
It is now mid-2022 with rising oil prices, inflation, rising building material prices, and rising tradesperson charges. In my opinion, a contractor ideally should PC the whole material cost component of a project.
Reference- NSW Fair Trading viewed 15/2/12, image source google
Como Building P/L, Michael Como provides in SYDNEY, an NSW Building Regulations Consultancy service that comprises, Interpretation of NSW legislation relevant to the construction of Class 1 and 10; Issuing: Complying Development Certificates (CDC), Construction Certificates (CC) [after a local council has approved a development], Occupation certificates (OC), Compliance Certificates, NCC Building Code Australia Reports. Engagement for the certification work is on a contract basis.
Also, a pre-purchase property inspection or building inspection by Michael Como may empower you with knowledge about the condition of a property currently or before you buy it and help you avoid future problems and unexpected costs. However, this service can only be conducted if the insurer is on-side, and currently, they are not and as a result, we do not conduct it.
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