Is this normal not to nail these costs

Serious. Run as fast as you can. They are leaving you exposed financially to serious over runs. Any honest company should be trying to work with you to eliminate PC sums and work to a fixed priced contract so there are no suprises to you during construction

These PC and PS are there to sucker you into entering a contract. Please don’t trust these big building franchises. Pack of thieves. DO your homework. If you have consented drawings no reason for PC/PS. Go with a local builder. Talking from a bitter experience.

Hi Kato, I see there have already been a couple of replies to this. I basically agree with Peter Quinn that this looks like one to walk away from. But having said that, I think that his suggestion of ‘eliminating’ PC (Prime Cost) items may be slightly over simplifying things. I can see where he and Neville Nair are coming from. A builder who wants to put in PC items, or PS’s (Provisional Sums) for the range of items you mention, and is not even willing to try to reduce the number, does not sound like a person you want to get involved in a build with. But even with consented drawings (assuming you’ve got those before signing a building contract) both PC’s and PS’s can often still be quite useful in a contract. A PC item is an amount of money allowed in a contract for the purchase of a specific type of item, where the client gets to choose the item, and whether to spend more, or in some cases less, than the PC. If it’s less you should get a rebate from the builder. So for example you know you want a gas oven, and the builder tells he will supply model X for which he will charge $3K as part of a fixed price contract. So when you sign the contract you put in a PC of $3K, because you want to wait to see whether new or improved model comes out before you install your kitchen. If the new model costs $3.5K you pay the builder $500 more. But the important thing is you get to choose how much to spend. PS’s are different. They are generally for the costs of work/things which it is not possible to accurately predict at the time of signing the contract. They are often used for things like foundations and earthworks, where the engineer may need to look at ground conditions after excavation, to determine pile depths or removal of unsuitable material etc. But rather than just put in a sum of money it is safer to put in a Provisional quantity at an agreed rate (eg Provisional quantity of 10m of 400mm dia piles, at $2K/m). Then you just pay for the amount installed. Of course all of this requires a builder who not only knows how things are supposed to be done, but is willing to do them. Maybe the next guy you go to will be one of those. And Neville is right, he probably won’t be a big franchise builder.

Great and comprehensive reply — thanks

Hi Peter, There seems to be no appetite to reduce PC or PS sums. Plus… I’m not much good at running. Thanks

Hi Neville, Thanks for your insights.