Provisional sum意思

"Provisional sum" is a term used in construction contracts, particularly in the context of the Joint Contracts Tribunal (JCT) standard forms of contract in the United Kingdom. It refers to an amount of money included in the contract sum for a particular item of work, the cost of which is not yet known at the time of tendering.

The purpose of a provisional sum is to allow for the inclusion of an item of work in the contract, without the contractor having to provide a fixed price for it at the tender stage. This might be because the design is not yet complete, or because the contractor does not have enough information to price the work accurately.

The amount of the provisional sum is included in the contract sum, but it is not paid to the contractor until the work is carried out and the actual cost is known. The contractor is then reimbursed up to the amount of the provisional sum, subject to any variations or changes in the cost of the work.

Provisional sums are often used for items of work that are likely to be required, but the exact nature or cost of which is not yet known, such as:

• Specialist works where the contractor does not have the necessary expertise to price the work.
• Works that are dependent on the final design, which has not yet been completed.
• Works that are subject to planning permission or other external factors.

The use of provisional sums can be beneficial because it allows the project to proceed without delay, while ensuring that the cost of the unknown items is included in the overall budget. However, it is important that the contract clearly defines the scope of the provisional sum items, and that the parties agree on the mechanism for determining the final cost of the work.