This week we drill down again into the fact that you need to know exactly what you ARE getting to insure you avoid budget blowouts.
Contracts often include ‘industry terms’ that may be unfamiliar. For example, the term ‘Provisional Sum’ is often used when a particular aspect of the work is undefined and not fully costed. Another term, ‘Prime Cost’ refers to items that have an allowable budget but may be interchangeable (things like vanities, baths, doors etc.)
What these terms really mean is…
The Price May Change
For example, if earth-works is listed as a Provisional Sum item, you may end up paying way more than the base rate (depending on the difficulty of the work).
Or if certain elements of your design (e.g. bathroom basin and plumbing) are listed as Prime Cost items, they too may increase in cost depending on the market price and availability of stock.
Not understanding exactly whats included and getting caught up in the wording trap can be disastrous for you because you may end up paying way more for things you don’t really want.
So be sure to…
Read and Understand Every Word of Your Contract…
…especially any ‘industry terms’ that are unfamiliar to you. If you’re not sure about something – ask. And don’t sign anything if it does not specify exactly what you want your home to be!