At the time of quotation or at the contract stage not every item will have been finally selected, an example of this maybe tap ware, floor tiles, door furniture or even larger items like kitchens.
A tap can be a low cost item or it can cost a lot of money depending on the clients tastes, budget or selection.
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 the cost of that item is $1000, that’s what you’ll pay. If buying the model you choose only costs $800, the sum invoiced will be $200 less than your quote. If it costs $1200, you’ll be invoiced for $200 more than the quote, that’s how prime Costs work….almost
What you also need to know is that the contract you signed will almost certainly entitle the builder to charge a margin on top of the actual cost. The margin can be 20% or 30%. So, if you choose that $1200 item against the $1000 allowance, the most you can be additionally invoiced $200 for the increased cost over the Prime Cost and an additional margin of the 20% or 30% on that $200, that is how it works.
