Prime Costs and Provisional Sums - what's the difference?

Building a home involves understanding all associated costs, including prime cost (PC) and provisional sum (PS). Prime cost refers to allowances in contracts for materials or fixtures yet to be selected, offering flexibility but potentially incurring extra charges if choices exceed the budget. Provisional sums estimate costs for undefined work, such as excavation or retaining walls, accounting for unforeseen changes during construction. PCs focus on materials, while PSs address labour or site-specific tasks. Both terms ensure transparency and flexibility, but careful planning and clear communication with your builder are essential to avoid misunderstandings and manage your budget effectively.