Prelim, Prime Cost, Prov Sum and Pro Rata

"Cost of administering a project, and providing general

plant, site staff, site facilities and site-based services and

other items which are not included in the rates."

Explanation above is best describing...

• Preliminaries

• Prime Cost

• Provisional Sum

• Construction Cost

• Pro rata

"Allocation of costs, benefits,

or resources based on a proportionate share. It's used in

construction projects that involve multiple companies."

Explanation above is best describing...

• Preliminaries

• Prime Cost

• Provisional Sum

• Construction Cost

• Pro rata

"Costs of construction works or

services executed by a nominated sub-contractor, a government or a

statutory authority or for materials or goods to be obtained from a

nominated supplier"

Explanation above is best describing...

• Preliminaries

• Prime Cost

• Provisional Sum

• Nominated Cost

• Pro rata

"Costs estimated in tender document, without certain figures, hence

cost will be provided as lump sum.

Explanation above is best describing...

• Preliminaries

• Prime Cost

• Provisional Sum

• Tender Cost

• Pro rata

Preliminaries costs are also known as overheads cost

• TRUE

• FALSE

Prime Cost (PC) are normally estimated in tender document, without certain figures, hence lump

cost will be provided as lump sum, calculated by cost consultant.

• TRUE

• FALSE

Which of the followings are included in Preliminaries cost?

• Tower crane

• Scaffolding

• Temporary road

• Portland cement

Which of the following's construction works are categorized as Prime Cost (PC)?

• Electrical Installation

• Fire Fighting System

• Air-conditioning System

• Lift and Escalator System

• Load Bearing Wall System

Provisional sum is used in the conditions below:

• Construction work that is not completely defined at the time the

  tender documents are issued

• Cost of a construction work that entirely cannot be foreseen

• Cost of construction work involving initial power and water supply

• Cost of construction work carried out by a nominated sub-contractor

Pro rata is used in construction project because...

• to ensures that each party's share is fair and in

  line with their level of involvement.

• to avoid common expenses being based solely on the

  main contractor

• to achieve economies of scale through cost sharing

• to limit interactions between companies working on a large-scale project