‘Prime Cost’
What does it mean when a builders quote or contract says ‘Prime cost item’ or ‘PC’ ?
These may also be described as inclusions.
At the initial contract or quotation stage not every fitting or fixture will be known, these may be doors, toilets, vanities, floor tiles and the like, items we know we need but as they have not been selected, these items still need to be included in the contract sum.
So what does all this add up to? Let’s say the Prime Cost of an item in the Inclusions Schedule is $1000. If, when you, the customer have chosen the actual item you want, it turns out that the cost of buying and installing that item is $1000, that’s what you’ll pay.
If buying and installing the model you choose costs $800, the sum invoiced will be $200 less than the quote. If it costs $1200, you’ll be invoiced $200 more than the quote. That’s how Prime Costs work
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