Contract Term Definition

The definition of terms in contract document:-

Quote – the price offered by the contractor to do the work

Preliminaries – these are the costs for items required to carry out the contract other than the actual construction works eg. Travelling costs, the hire of scaffolding or other items of plant, office or other administrative costs

Provisional sums –an amount included in the contract sum/agreed quote for additional works that are not fully specified

Variations – these are the works that arise during construction which were not allowed for in the quote

PC Sum (Prime Cost Sum) – a sum of money allowed for an item or work or materials supplied by the client eg. Installation of a fire alarm system by a specialist already selected by the client, or the cost of a bathroom suite already purchased by the client

Retention – sum of money set aside by the client (you) from the contract sum until the works are completed to your satisfaction

(quoted from http://www.rics.org/Services/BCIS/pr_bcis_guide061006.html )