ABSTRACT
Members of The Electrical 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 electrical contracts as provide for its use. 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". In the case of a subcontract which provides that the subcontractor shall allow a cash discount, such provision as is necessary for the allowance of the prescribed rate of discount. It should be noted that all labour costs incurred by the Contractor in his capacity as an Employer.
