Glossary
Prorata account / Shared costs account
Sheet under review by our engineersThe prorata account is a shared fund among different contractors working on the same large construction site (which is rare for a single-family home). It's used to pay for common expenses: site security, cleaning, temporary water and electricity, etc.
Why it matters for your home
For individual house construction with a single main contractor, this term is generally not very relevant. If it's brought up, you need to be very vigilant, as it could hide additional or poorly justified costs.
The African context
Very rarely applicable for individual house construction. If a contractor mentions it for a simple project, it can be a red flag. It's mainly for large construction sites with several distinct companies.
Red flags
- ⚠ A single contractor suggests setting up a 'prorata account' for your individual house construction.
- ⚠ The prorata account fees are very high and not clearly detailed.
- ⚠ You're asked to pay a share of the prorata without explanation of actual expenses.
- ⚠ The contractor cannot justify the relevance of a prorata account for your project.
Questions to ask
- 1. "Is this term really relevant for my individual house project with a single main contractor?"
- 2. "If so, can you precisely detail what this prorata account will cover in terms of expenses and how they will be justified?"
- 3. "How will my share of the prorata fees be calculated and controlled?"
Related terms
At this stage of your project?
An independent DiasporaBuild inspector can verify on site before you pay.