What are preliminaries in a construction ? A Complete Explanation

In the construction industry, "preliminaries" refers to the essential costs that are required for the overall project execution and are not associated with particular work sections or activities. Other overheads in construction, relate to additional expenses that are required for the overall operation of a project but are not directly related to work areas or activities. These expenses encompass a broad range of commodities, equipment, and labour and might be one-time or ongoing expenditures throughout the project. Typical pre-contract costs include site-related costs like access ways and erosion protection measures, as well as managerial and administrative costs like payments to managers and other stakeholders, planning and designing fees, and other work like mock-ups, testing, and sampling.

Preliminaries typically account for a significant portion of project expenditures overall and can be challenging to split across other activities, thus they must be justified. They must be included in the construction contract so that contractors can calculate and recover the appropriate amounts and the owner is informed. Because the total project costs are transparent, it helps to eliminate financial disparities and the emergence of excessive expenses.

Since preliminary expenses are not decided upon until the bidding stage, contractors are the most qualified to make estimates linked to them. The use of collaborative contracts, which are already typical in the industry, planning, and cost control have become the main challenges in this respect. The platforms and solutions to handle these obstacles enhance the construction process by providing better performance and real-time tracking. Consequently, the management of preliminary work plays a critical role in achieving the highest profit and successful project completion.

Among preliminaries, it is the contractor who is usually expected to make the necessary calculations. As for the definition of the items that fall under the preliminaries’ category, the project owner may set certain limits, yet it is the contractor who can determine how much is necessary for each item on the list. It also includes discussions with subcontractors and third-party specialists, which encompass management and planning costs, design costs, site services, and all the other miscellaneous costs that are unavoidable but cannot be well described under any of the previous headings. The computation of preliminaries should be done effectively, as they include most aspects of cost and have a direct bearing on the estimated amount. Subcontractors are also required to ensure that all preliminary expenses are known to avoid conflicts of overspends.

A variety of costs that are essential to the overall project but not assigned to specific work sections make up preliminaries in construction. Common ones include management and administrative costs such as payments to project managers and stakeholders who oversee the whole project. Preliminaries also incorporate planning and design costs, which entail drawing up and maintaining schedules for projects, as well as mandatory reporting on progress. The list includes access roads, erosion control; environmental compliance; mockups, testing or sampling required to ensure that materials meet the specifications of the project.Other examples are additional and provisional sums, site security, and risk allowances in general. These costs are crucial for the effective supervision of the project and its adherence to set standards, as well as organizing the project.Transparency and accurate cost estimation are necessary for successful projects in the preliminaries.

Preliminary percentages in construction relate to the fraction of the total project costs for preliminary items that are indispensable but not associated with certain sections of work. These percentages can indeed change depending on the size of the project, geographical location, and magnitude of the project. In cases of minor works, preliminaries may be added as a proportion of the total amount and could be as low as 5% or as high as more than 15%. It makes budgeting easier and guarantees that all the preliminary expenses including site establishment, site management, office costs, and site services, among others, are incorporated into the cost structure without having to estimate the cost of each item. This aids in the provision of project transparency as well as subsequent efficiency.

Construction preliminaries are important because they cover all expenses that are required for a project to run smoothly but have nothing to do with specific work segments. The incorporation of preliminary work into the contracts guarantees that the owner is fully informed throughout the project and understands what they are getting into, while also allowing the contractors to quote and cost accordingly. Contract conflicts and increased costs may arise from noncompliance with these. A precise preliminary estimation ensures that all necessary and adequate resources are available to enable the timely and effective completion of the project at the desired profit margin.