I have contracted a builder to build anextension. This included some Provisional Sums where the final detail still needed to be agreed (e.g. patio), or particular items were being sourced from a third party (e.g. specific wallpaper).
The contact has a note that the listed Provisional Sums include 15% for Main Contractors Overheads & Profit. There was a separate note that £800/1,000 had been included for supply of facing bricks (the bricks are included in the contract sum and are not a listed Provisional Sum).
1. Is 15% OHP on Provisional Sums normal?
2. The Bricks have come in at £760. With +15% added this would be £874 (so I would need to pay the difference amount over £800 (i.e. £74/1,000). Should 15% OHP be added to a contracted item (where there is an allowance)?
Many thanks.
The contact has a note that the listed Provisional Sums include 15% for Main Contractors Overheads & Profit. There was a separate note that £800/1,000 had been included for supply of facing bricks (the bricks are included in the contract sum and are not a listed Provisional Sum).
1. Is 15% OHP on Provisional Sums normal?
2. The Bricks have come in at £760. With +15% added this would be £874 (so I would need to pay the difference amount over £800 (i.e. £74/1,000). Should 15% OHP be added to a contracted item (where there is an allowance)?
Many thanks.