Introduction
Who would be responsible for unforeseen changes to costs in different situations?
A builder will need to absorb unforeseen costs when a manufacturer increases the price of a material after a contract has been signed.
If there are problems during construction due to an oversight by the builder, the builder must cover the expenses. This is assuming that the contract documents were correct, in which case technical problems should have been evident at the time of making a quote.
If the price rise is in relation to prime cost sums A prime cost sum is the cost of an item that has either not been selected or the price was unknown at the time the contact was entered into. or provisional sum A provisional sum is an estimate of the cost of carrying out particular work including the cost of supplying any materials needed for the work. An estimate is required if, after making all reasonable enquiries, the builder cannot give a definite amount for the item at the time the contract is entered into. , the amount should be absorbed by the contract. If the actual cost is higher than the prime cost sum or provisional sum, the client will have to pay the difference.