Provisions the documents cite: prime cost of labour — Option A (percentage addition) and Option B (all-inclusive rates)
What it requires
The definition used where a building contract values work on a daywork basis: payment on the prime cost of labour, materials and plant plus agreed percentage additions. It is not law and applies only where the contract adopts it; recorded as type industry-code for the reason given in the jct-2024 entry. The third edition was agreed by RICS, the Building Cost Information Service and the Construction Confederation; it was published in June 2007, operative from 1 September 2007, and superseded the second edition of December 1975. It gives two options for the prime cost of labour — Option A, a percentage addition for incidental costs, overheads and profit on the traditional method, and Option B, all-inclusive rates that include those allowances and are fixed for the contract period. These particulars are from secondary summaries; the document itself was not read.
The instrument itself: https://www.isurv.com/downloads/file/3067/definition_of_prime_cost_of_daywork_carried_out_under_a_building_contract_3rd_edition. The summary above is our plain-English reading, not the text of the instrument — always work from the source.
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The 2 documents that cite it
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