ArmASURGERY
When an accurate assessment canbemade, theprovisional sumwillbe disregarded
Provisionalsums
QUESTIONmajorworks have beenproposed at ourblock andformalconsultation noticeshave beenserved.iwenttolook overtheworks specification anddetailed estimates showinghoweach buildermade up his estimate for each itemofwork. ihave beensurprised at howmanyitems
therearewherethe specification says to allowforaprovisionalsumofaparticular amount ofmoney. Thoseprovisional sums add up to just overaquarterofthe price. is that right? ANSWER If asurveyorcannotaccurately specifyaparticularitemofworkina specification (becauseof, eg,lackofaccessor exposure workswillbenecessary first)then he will put a general description of the work to be allowed in the specification and ask those builders tenderingfor thecontracttoallow a provisional sumfor the cost of carrying out that work. When an accurate assessment can bemade,
theprovisional sumwillbedisregarded andthe surveyor will agreeanamountfor theactualcost of theworkwiththe builder. Whenfully justified by thecircumstances, provisionalsums arethe accepted way of dealing with
theseuncertainties.Itis sometimesalleged that an inadequatesurvey has been carried out before the specification wasdrawnup andthatthe circumstances do notjustify that part of thecontractbeing covered by a provisional sum. Hopefully, the provisional figure will be
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approximately right, butthe actual figure agreed couldbealot less if theworkitem wasfound to be nothinglikeasbad as the surveyor thoughtitmight be,oralot moreif thesurveyorseriously underestimatedthe extent of workwhichwould be required.Ifthe provisional sumsare too high, then farmore moneyhas to be collectedintothe service chargeaccountthanturns outtobeneeded,
Provisionalsumsdonot meet therequirement oftwoestimates being provided...
if theprovisional sumturns outtobetoo low, then thereisariskthatthe workswillgrind to a haltwhile additional sumsofmoney are demanded. Theconsultationprocedures(Section 20 of
the Landlord and Tenant Act 1985) require at leasttwo estimatestobeobtained andput to thelesseeswhomaynominateabuilderfor that purpose. Theintention of thelegislation wasthattheymustbecompetitively-priced estimates so that there is evidence that the lesseesare gettinggood valueformoney, that good valueestablished by theprocessof competitivetendering.
Provisionalsums do notmeetthe
requirement of two estimates being provided, andthe final contract figuretobepaidwhen works are finished will not have resulted fromcompetitivetendering in relation to theprovisional sums.Iamnot awareofany particular Tribunal decisionwhich considers this difficult issue,but Ihavenodoubt that it isamatterthatwillcomebeforeaTribunalat sometimefor an authoritative decision. Theexcessive useofprovisional sums
arises either becausethe surveyor has not takendue care in preparingthe specification, or thelandlord/managementcompany wasnot willingtopay asufficientfee for the surveyor to do a thorough inspection before writing the specification. In your particular case, Isuggest that yousenda consultation replyaskingwhy thereare so many provisionalsums,why theworkfor each provisionalsumhas notbeenaccurately quantifiedfor fixed priceestimation purposes, onwhat basis the provisional sums have beenassessed, andwhatcarehas been takentosatisfy areasonablepersonthatthe provisionalsums areneither excessively high nor inadequatelylow. Take good quality photographs, datedand
identified, of therelevantareas before works start so that, if a huge rowdevelops later, you have theevidenceofwhatitlookedliketothe surveyorwhen he prepared hisspecification andtoyourselfwhenyou prepared your consultation reply.●
Winter 2011 Flat Living
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