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Definition of Prime Cost of Daywork Carried Out Under a Building Contract

Jacket image, Definition of Prime Cost of Daywork Carried Out Under a Building Contract, ISBN 9781904829621
Definition of Prime Cost of Daywork Carried Out

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Product Code: 9781904829621

Published: June 2007
ISBN: 9781904829621
Product code: 16721
Publisher: BCIS
Pagination: 20 pages
Format: Paper Back
It is over 30 years since the 'Definition of Prime Cost of Daywork Carried Out Under A Building Contract' was revised. After much consultation between the Royal Institution of Chartered Surveyors, the Building Cost Information Service and the Construction Confederation, a new definition* was published in June 2007, and superseded the previous edition from 1 September 2007.
There are some significant differences in the new definition which now offers two options for dealing with the prime cost of labour:
- Option 'A'- Percentage Addition, is based upon the traditional method of pricing labour in daywork, and allows for a percentage addition to be made for incidental costs, overheads and profit, to the prime cost of labour applicable at the time the daywork is carried out.
- Option 'B' - All Inclusive Rates, includes not only the prime cost of labour but also includes an allowance for incidental costs, overheads and profit. The all-inclusive rates are deemed to be fixed for the period of the contract. However, where a fluctuating price contract is used, or where the rates in the contract are to be index-linked, the all-inclusive rates shall be adjusted by a suitable index in accordance with the contract conditions.
Whoever puts the contract documents together can decide which of the above methods is the most appropriate. Consideration should be given, for example, to length of contract, whether the contract is fixed, firm or fluctuating price, or whether the costs are to be index linked. Using Option 'B' - All Inclusive Rates, gives the client price certainty in terms of the labour rate to be used in any daywork during the contract, but there is the potential that the rate will be higher, as the contractor is likely to build in a contingency to cover any unknown increases in labour rates that may occur during the contract period.
If Option 'B' is used and the rates in the contract are to be indexed linked, BCIS publish a number of cost indices that may be suitable in the circumstances.
The new definition gives guidance on how to build up the prime cost of labour in daywork for non-productive overtime purposes.
Some model documentation is also included, illustrating how the Definition of Prime Cost may be applied in practice. This does not form part of the definition.
Example calculations of the Prime Cost of Labour in Daywork are given, including a build up for non-productive overtime.
Includes free pdf of 'Dayworks Survey 2007', the results of a survey carried out to indicate the amount of work carried out on a daywork basis in the construction industry in Great Britain, in 2007.

Price: 70.00

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