By Jan Dowling June 23rd, 2017. Comments Off on How to Understand PC Items in Your Building Contract

Prime Cost (PC) items in a standard building contract seem to cause great confusion.  We’ve taken that confusion away – watch Kym explain just how easy it is to understand what PC items mean to you.

We’ll agree a sensible estimated amount with you to include in your contract for items you’ll need for your home, for example tiles and taps – items you haven’t chosen by the time you sign your contract.

Of course, if you’ve already chosen them, or even just some of them, we won’t need to make an allowance for those items, and that’s great too!

Read the video here –

Hi everyone, Kym Dowling here from Dowling Homes.

When it’s time to sign a contract, you’ll notice inside the contract it has the phrase “PC item.”

What’s a PC item? It stands for prime cost. It’s a prime cost item. And what’s that? These are items that haven’t yet been selected when it comes time to sign the contract. Now that could be floor and wall tiles, tap ware, sanitary ware, kitchens, vanity units – there’s quite a few of them. So we sit down with you and discuss an appropriate amount to set aside for those particular items.

Now it’s important to do that, because we need to understand where you sit with price point and quality.

I’ll use kitchens as an example. There is a big difference between a two-pack with stone bench top kitchen and a laminate kitchen. So the more accurate we can get that, the better it is for you, because you know with confidence that you can go shopping to the various outlets and suppliers that we can provide for you and choose the items according to the PC amount.

Now with PC items, it works like a balance sheet. If you purchase something that falls under the PC allowance we’ve made, we credit that amount back to you during the course of the project. And if you, of course, choose something that’s a little bit dearer than the PC amount, you pay us the balance.

So that’s cleared up what PC items are, and if you’d like some more information on it, give us a call or send us an email. We’re more than happy to help.

Over to you

So stop worrying and let’s get started – we’ve got it covered! Chat soon.