When starting a construction project, you’ll often hear the term preliminaries or “prelims.” But what does it actually mean, and why is it so important to get it right? Here’s a clear, practical guide to preliminaries in construction-what they include, how they’re calculated, and why they matter for every project.
What Are Preliminaries in Construction?
Preliminaries are the essential costs and activities needed to get a construction project up and running, but they don’t directly become part of the finished building. Think of them as the groundwork and support systems that make the actual construction possible. These preliminaries cover everything from site setup and permit acquisition to worker temporary facilities and health and safety compliance.
In simple terms:
Preliminaries are the behind-the-scenes costs that keep a project organized, safe, and compliant from day one.
What Do Preliminaries Include?
Preliminaries can vary depending on the size and type of project, but some common examples are:
- Site setup: Temporary fencing, signage, access roads, and site offices.
- Utilities: Temporary water, electricity, and toilets for workers.
- Project management: Salaries for site managers, supervisors, and administrative staff.
- Health, safety, and environmental measures: First aid stations, safety equipment, waste management, and dust or noise control.
- Planning and approvals: Costs for permits, surveys, and design changes.
- Security: Site security staff or systems to prevent theft and vandalism.
- Quality assurance: Testing, mock-ups, and inspections to meet standards4.
- Insurance and compliance: Costs for required insurances, bonds, and regulatory documentation.
- Communication: Systems for reporting progress and keeping everyone in the loop.
Example:
For a typical residential project, preliminaries might amount to $14,000, which is approximately 5% of the total project cost.
Why Are Preliminaries Important?
Preliminaries are crucial because they:
- Set the foundation for smooth project delivery: Without proper site setup and management, projects can face delays, safety incidents, or compliance issues.
- Ensure transparency and accurate budgeting: Including preliminaries in the contract prevents surprise costs and disputes later on.
- Support health, safety, and quality: These costs ensure workers have safe conditions and the project meets all legal and quality requirements.
Who Calculates Preliminaries?
Usually, the contractor is responsible for estimating preliminaries. They review the project requirements, consult with subcontractors and specialists, and factor in everything needed to keep the site running smoothly. While the project owner may establish guidelines, the contractor possesses the best knowledge of their team’s and the site’s specific needs.
How Are Preliminaries Shown in a Construction Contract?
Preliminaries are listed separately in the contract or tender documents, often in their own section. This makes it clear to everyone what’s included and helps avoid confusion between direct construction costs (like bricks and concrete) and these essential support expenses.
Typical items in the preliminaries section:
- Project management and admin costs
- Site setup and services
- Design and planning fees
- Health, safety, and environmental costs
- Security and insurance
- Temporary utilities and facilities
What Percentage of a Project Are Preliminaries?
Preliminaries usually make up about 5% to 15% of the total project cost, depending on the project’s size and complexity. For smaller jobs, it might be closer to 5%, while larger or more complex sites can see preliminaries rise above 10% or even 15%. This percentage helps contractors and owners budget accurately without having to break down every single preliminary item.
Common Questions About Preliminaries in Construction
Are preliminaries the same as overheads?
Not exactly. Overheads are ongoing business costs (like office rent or company insurance) that aren’t tied to a specific project. Preliminaries are project-specific costs needed to get the job started and keep it running.
Can preliminaries change during the project?
Yes, if the project scope changes or unexpected needs arise (like extra security or new safety rules), preliminary costs may need to be updated.
What happens if you skip or underestimate preliminaries?
Missing or underestimating preliminaries can lead to delays, safety risks, compliance problems, and budget overruns. It can also cause disputes between contractors and clients if costs weren’t clearly explained up front.
The Bottom Line
Preliminaries in construction are the vital, often unseen costs that make every project possible. They cover everything from site setup and safety to management and compliance. By understanding and accurately budgeting for preliminaries, both contractors and clients can avoid surprises, keep projects running smoothly, and ensure a safe, efficient build from start to finish.
If you’re planning a construction project, make sure preliminaries are part of your contract and budget-they’re the key to a successful, stress-free build.
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