Understanding Provisional Sums, PC Items, and Hidden Costs in Construction Quotes

When comparing building quotes, it is easy to focus on the total price and overlook what is actually included. Many quotes contain terms such as Provisional Sums and Prime Cost (PC) Items, which can greatly affect the final cost of your project. Understanding these terms helps you make fair comparisons between builders and avoid unpleasant surprises down the line.

What Are Prime Cost (PC) Items?

A Prime Cost Item refers to a material or product that has not yet been selected when the quote is prepared. Common examples include tiles, taps, or light fittings. The builder includes an allowance for these items based on a reasonable estimate of what they might cost.

If you later choose something more expensive than the allowance, you will have to pay the difference. For instance, if your quote includes a PC amount of R500 per square meter for tiles and you select tiles costing R800 per square meter, you will pay an extra R300 per square meter.

It is important to check that the PC allowances are realistic and match the quality you expect for your project. Unrealistically low allowances can make a quote appear cheaper than it will actually be.

What Are Provisional Sums?

A Provisional Sum is an estimated cost for work where the exact scope or details are not yet known. This might include excavation, site works, or unforeseen structural adjustments.

Because the final amount depends on what happens once the work begins, Provisional Sums can vary significantly from the estimate. Builders use them to keep the quote moving forward while acknowledging that the final price may change.

If your quote contains many Provisional Sums, it usually means a lot of information about the project is still uncertain. This can make the overall cost less predictable.

The Problem with Hidden Costs

Hidden costs are not always intentional, but they can occur when quotes are unclear or incomplete. Common examples include:

• Site preparation or access issues not mentioned in the quote

• Connection fees for services like water or electricity

• Finishes, fittings, or fixtures excluded from the original allowance

• Costs for approvals, permits, or design changes

A detailed and transparent estimate helps prevent these surprises. Always ask your builder or estimator to explain what is included and what is excluded.

Why Professional Estimation Matters

A professional estimator will clearly identify all PC Items and Provisional Sums and give realistic allowances based on current market prices. This makes it easier to compare builders on a like-for-like basis. It also helps you budget more accurately, plan your cash flow, and avoid the stress of unexpected extras during construction.

Final Thoughts

Before signing any contract, go through the quote carefully and highlight every Provisional Sum and PC Item. Ask for clarification where needed and make sure you understand what each allowance covers.

An experienced estimator can provide an independent review of your quote to ensure that it is fair, transparent, and suited to your expectations. Spending a little time at this stage can save you a great deal of money and frustration later on.