RESOURCES

ConstructionGlossaryTermsVocabulary

Provisional Sum

Search for glossary terms (regular expression allowed)

Glossaries

Term Definition
Provisional Sum

a "Provisional Sum" refers to an estimated allowance included in a contract for certain work or materials that cannot be precisely specified at the time of contract signing. This sum is typically used for elements of the project where the scope is not fully defined or where there is uncertainty about the cost.

Provisional Sums are included in the contract to provide flexibility and ensure that the project can proceed without delay while allowing for adjustments once the details are clarified. They are often used for items like specialized equipment, unforeseen site conditions, or work that requires further design development.

Once the actual cost of the work or materials covered by the Provisional Sum is determined, the contract is adjusted accordingly. This may involve either an increase or decrease in the contract price, depending on whether the actual cost is higher or lower than the provisional amount.

Key Characteristics of Provisional Sums:

  • Included in fixed-price construction contracts
  • Budget allowance for undefined or unscoped work or materials
  • Estimate of the cost of providing particular services or works
  • Mechanism to accommodate uncertain elements of the project
  • Allocated funds within a project's budget for specific work or materials

It's important for both parties in a construction contract to clearly understand and agree on how Provisional Sums will be managed, including how they will be adjusted and documented, to avoid disputes and ensure smooth project execution.

Synonyms: PS sum, PS

Select a service to learn more

Planning & Development

Development Management

Early stage involvement designed to reduce client/ developer risk. Focus on budget, feasibility and constructibility.

Design & Documentation

Design Management

Collaborative, efficient coordination of design, documentation and specifications.

Project Management

Project Management

Professional management of construction projects. Focus on accountability, efficiency and risk mitigation.

Construction Services

General Contracting

Flexible project delivery models including construct only (GC), design & construct, construction management or cost-plus

Asset Management

Asset Protection

Asset management, planned and unplanned maintenance, abortive and remedial works, audits and inspections.

HSEQ Management

HSEQ Services

Health, Safety, Environment and Quality system management, auditing and risk analysis

Select your sector of interest to learn more

Aged Care

Aged Care

Aged Care construction and fitout

Childcare

Childcare & ELC

Turnkey Childcare planning, design and project management, construction, fitout and lifecycle maintenance.

Civil & Environmental

Civil & Environmental

Civil, infrastructure & environmental planning, design and project management, construction and lifecycle maintenance.

Commercial & Mixed-use

Commercial Construction

Commercial building project planning, design management, construction and lifecycle maintenance.

Community & Public

Public Spaces

Community centre & public venues planning, design and project management, construction, fitout and lifecycle maintenance.

Cultural & Worship

Cultural & Worship

Place of worship & cultural centre design and project management, construction, fitout and lifecycle maintenance.

Education & Training

Schools & Training Facilities

General & specialist training facility planning, design and project management, construction and lifecycle maintenance.

Hospitality & Restaurants

Hospitality & Restaurants

Restaurant building project planning, design management, construction, fitout, refurbishment and lifecycle maintenance.

Healthcare

Healthcare

Public & private healthcare facility planning, design and project management, construction, fitout and lifecycle maintenance.

General Practices

GP Clinics

Turnkey medical centre design and project management, construction, fitout and lifecycle maintenance.

Diagnostic Imaging

Radiology Centres

Radiology clinic, imaging department planning, design and project management, construction and lifecycle maintenance.

Labs & Cleanrooms

ISO & TGA Cleanrooms

Lab & sensitive environment project planning, design management, construction, fitout, refurbishment and lifecycle maintenance.

Industrial & Logistics

Manufacturing & Warehousing

Factories, industrial project planning, design and project management, construction, fitout and lifecycle maintenance.

Data Centre & Energy Storage

Data Centres, Energy Storage

Data centre, battery research and production design and project management, construction, fitout and lifecycle maintenance.

Retail & Shopping Centres

Retail & Shopping

Turnkey retail design and project management, construction, fitout and lifecycle maintenance.

Office Buildings

Office fitout

Office space project planning, design management, construction, fitout, refurbishment and lifecycle maintenance.