As DC Builders like to give their clients a choice they typically offer a Fixed Price Quote or a Cost Plus Quote. Both have pros and cons, so their handy guide explains all the details. They generally find that their architectural builds clients tend to go with the Cost Plus version, which usually results in the need for ongoing decision making throughout the build, making it impossible to match a fixed quote. More importantly, not fixing the quote means more transparency for the client, as you only get charged for the work and materials used. In other words, no hidden contingency costs.
Most building contracts include provision for (PC Sum) items and (Provisional Sum). A prime cost item is a provision in the contract for the supply of necessary items not yet finally selected, for example taps or door furniture. A provisional sum is an allowance in the contract for the cost of forseeable necessary work, including the supply of materials not necessarily described or detailed at the time that the contract commenced, for example whiteware or service connection.
If the actual cost comes in above what has been allowed for, then the client pays the increased cost. If the cost comes in lower, then the client only pays the actual cost. A typical example of a Prime Cost item would be the supply of vanities, toilets, baths etc. DC Builders make them an allowance, as everybody has their own idea of what they would like, and you should have the option of selecting a wide range.
Regarding PNG items (preliminaries and general), the preliminary cost of a construction project include the erection of scaffolding, wrapping and the installation of temporary services such as temporary site fencing, toilet facilites, health and safety, plant hire, Hiab costs etc. These are items which need to be allowed for to cover all the costs that are not covered by labour and material costs, or subcontractors’ costs.
At DC Builders they say they don’t avoid the tough questions, so for more information on construction companies, recladding specialists Auckland, building trade partners and certified builders please go to https://www.designconstruct.co.nz .