In every construction contract, there are items that cannot be fully specified or quantified at the tender stage. These are called Non-Scheduled Items, and they appear in contracts as Provisional Sums or Prime Cost (PC) Items. Understanding how to handle these items is crucial for accurate tendering, fair billing, and avoiding disputes.

📋 What are Non-Scheduled Items?

Non-scheduled items are those that are not fully defined in the Bill of Quantities (BOQ) or Schedule of Rates (SOR) at the time of tendering. They are included as lump sum provisions to cover:

• Work that cannot be precisely quantified (e.g., unforeseen ground conditions)
• Specialist work where contractor is not yet selected (e.g., elevators, HVAC)
• Materials where final specifications are not decided (e.g., tiles, sanitary fixtures)
• Contingencies for unexpected work

These items are of two main types:

1. Provisional Sums – for work or services
2. Prime Cost (PC) Items – for materials or goods

💰 Provisional Sums

Types of Provisional Sums

• Defined Provisional Sum: Work is described but quantity is uncertain. Contractor adds overheads & profit.
• Undefined Provisional Sum: Work cannot be described at all. Contractor adds nothing – paid actual cost + agreed percentage.

Examples of Provisional Sums

• Rock excavation (if rock may or may not be encountered)
• Piling work (if depth is uncertain)
• Specialist testing (soil testing, material testing)
• Site dewatering (if groundwater level is unknown)
• Archaeological finds handling

How Provisional Sums Work

1. Client includes a provisional sum in the BOQ (e.g., ₹5,00,000 for rock excavation)
2. Contractor quotes without adding profit on this amount (unless it’s a defined sum)
3. If work is ordered, contractor performs it and gets paid based on actual measurements
4. Payment includes actual cost plus contractor’s overheads and profit as per contract
5. Unused provisional sum is deducted from contract value

🛒 Prime Cost (PC) Items

Examples of PC Items

• Elevators / lifts (make/model not decided)
• HVAC equipment (chillers, AHUs)
• Sanitary fixtures (WC, basins, taps)
• Flooring tiles (design not finalized)
• Kitchen equipment
• Electrical fixtures (lights, fans)
• Special paints or finishes

How PC Items Work

1. Client includes a PC sum in the BOQ (e.g., ₹2,00,000 for tiles)
2. Contractor selects supplier (often with client approval)
3. Contractor purchases materials and submits invoices
4. Client reimburses actual cost plus agreed percentage for handling, overheads, profit
5. Any savings or excess are adjusted in final bill

⚖️ Key Differences: Provisional Sum vs Prime Cost Items

Parameter	Provisional Sum	Prime Cost (PC) Item
Purpose	For work or services	For materials or goods
Nature	Uncertain quantity or scope	Uncertain final selection/supplier
Contractor’s Role	Executes the work	Procures the materials
Payment	Actual cost + overheads + profit	Actual invoice + handling charge
Example	Rock excavation, piling	Tiles, sanitaryware, lift

📜 Contract Clauses (CPWD / FIDIC)

CPWD Contract Clauses

In CPWD contracts, Clause 12 deals with provisional sums and PC items:

• Clause 12.1: Provisional sums shall only be used for work ordered in writing by the Engineer-in-Charge.
• Clause 12.2: For PC items, contractor shall submit vouchers and actual cost for verification.
• Clause 12.3: Contractor is entitled to 10% overheads and profit on actual cost of PC items (unless otherwise specified).

FIDIC Clause 13.5 (Provisional Sums)

Under FIDIC, provisional sums are used for:

• Work to be executed by the Contractor (paid at contract rates or by daywork)
• Work to be executed by a nominated subcontractor
• Purchase of materials from a nominated supplier

🧾 How to Bill Non-Scheduled Items

Billing Procedure for Provisional Sums

1. Work Order: Engineer issues instruction to carry out the work
2. Execution: Contractor performs work and records measurements
3. Rate Determination: Rate is derived from SOR, or if not available, by rate analysis
4. RA Bill Entry: Work is billed in Running Account bill as extra item
5. Deduction: Corresponding provisional sum is deducted from contract value

Billing Procedure for PC Items

1. Selection: Material is selected (with client approval)
2. Purchase: Contractor procures and submits original invoices
3. Verification: Engineer verifies invoices and quantity received
4. Payment: Contractor is paid invoice amount + agreed markup (usually 5-10%)
5. Deduction: PC sum is deducted from contract value

📊 Practical Examples

Example 1: Provisional Sum for Rock Excavation

Contract: BOQ includes provisional sum ₹5,00,000 for rock excavation (if encountered).

Site Condition: Rock is found in footing excavation.

Action: Engineer issues order for rock excavation. Contractor excavates 150 m³ of rock.

Rate: As per SOR, rock excavation rate is ₹850/m³.

Billing:

• Work done value = 150 × 850 = ₹1,27,500
• Added to RA bill as extra item
• Provisional sum reduced from ₹5,00,000 to ₹3,72,500 (remaining for future)

Example 2: PC Item for Tiles

Contract: BOQ includes PC item ₹3,00,000 for vitrified tiles (make/design to be selected).

Selection: Client selects tiles costing ₹2,50,000 (invoice value).

Markup: Contract allows 10% handling charges.

Billing:

• Invoice amount = ₹2,50,000
• Handling @10% = ₹25,000
• Total paid = ₹2,75,000
• PC sum deducted – balance ₹25,000 returned to client

✅ Best Practices for Managing Non-Scheduled Items

• For Engineers: Issue clear instructions before work starts. Verify all invoices and measurements.
• For Contractors: Get written approval before incurring costs. Maintain proper records (invoices, delivery challans, measurement sheets).
• For Both: Agree on markup percentages upfront. Document everything – emails, letters, meeting minutes.
• In BOQ: Clearly mark provisional sums and PC items. Specify whether markup is included or to be added.

📥 Download Non-Scheduled Items Tracker