Mixed-Use Commercial
Provisional Sums Are Where Profit Margins Disappear.
Mixed-use commercial building, 6 floors. Noticed variation claims were escalating rapidly. Root cause: provisional sums for electromechanical works and finishes were significantly underestimated at design stage by the client's QS. Supplier proformas validated the contractor's entitlements.
The Challenge
What Was Happening on the Ground
Mixed-use commercial building, 6 floors. Noticed variation claims were escalating rapidly. Root cause: provisional sums for electromechanical works and finishes were significantly underestimated at design stage by the client's QS. Supplier proformas validated the contractor's entitlements.
Before & After
The Before and After
| Metric | Before | After |
|---|
Systems Implemented
Systems We Put in Place
System
Variation register with entitlement audit
System
EM scope reconciliation against drawings
System
Provisional sum true-up analysis
System
Monthly cost report to client/lender
System
Remaining works scope lock protocol
System
Final account negotiation strategy
Outcomes
What Changed
$310K in variation claims reduced or rejected through entitlement challenges
Client had a credible final account forecast
Scope locked for remaining EM and finishes works - variation exposure capped
Client-side QS brief strengthened for future projects to prevent recurrence
Case Studies
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