ABSTRACT
Members of the Heating and Ventilating Contractors Association are not in any way debarred from defining Prime Cost and rendering accounts for work carried out on that basis in any way they choose. Building owners are advised to reach agreement with contractors on the Definition of Prime Cost to be used prior to entering into a contract or subcontract. This Definition provides a basis for the valuation of daywork executed under such heating, ventilating, air conditioning, refrigeration, pipework and or domestic engineering contracts as provide for its use. It is not applicable in any other circumstances, such as jobbing or other work carried out as a separate or main contract nor in the case of daywork executed after a date of practical completion. The prime cost of materials and goods obtained specifically for the daywork is the invoice cost after deducting all trade discounts and any portion of cash discounts in excess of 5".
