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a 4.5% allowance for a specialist company tendering for a large new project
Pricing Preliminaries is also clearly a key stage at which clients begin make commercial
judgements relating to their desire to secure the work. For these reasons builders should
NOT rely on the average percentage allowance set out on the on the Estimate Analysis
Form We do not, unless specifically instructed, have enough information about each
individual companies working practices to properly cost this area of the work. Our
allowance should be removed and replaced with a properly costed figure based on your
own calculation.
Preliminaries (extract of TFPBW) v1
Trevor Sadd Associates Ltd
Page 1 of 16
Last Edited January 2005
Layout of the site together with access and the usable areas
An outline project program setting out the order of works and the critical items
Key areas of work and the amount of labour and plant that each require
The estimator can start to cost the known Preliminaries (once the key factors have
been established) using a check list such as the Preliminaries Tables.
At this stage it is essential that the estimator is aware what has been allowed for in the
non-preliminary site costs and the overheads so as to avoid the duplication of costs
The estimator should also restrict the pricing to a best assessment of how the project
will be undertaken noting any concerns to be costed at the second stage. A concern,
for example, relating to overtime may require knowledge of how the projects program
will impact upon and be affected by other contracts.
Page 2 of 16
Last Edited January 2005
The desire to win the work will be further effected by the businesses workload and any
other opportunities in the market, for example:
secure projects
other opportunities.
In an ideal world, it is assumed that a builder would already have rejected projects
with high levels of risk.
However, in practice, contracting usually involves some risk and this can be dealt with
in a number of ways, for example
costed by the builder on an item by item basis, (based on the level of risk)
offset within the tender through the use of exclusion clauses (usually agreed
prior to tender)
insurance
Further details of factors effecting such commercial decisions are set out in the
Formulating Tenders section and the Sub-contract Pricing Considerations section of
the booklet Building Costs and Sources of Supply
In most cases the analysis proposed can be simply achieved by pricing the items in two
columns.
Page 3 of 16
Last Edited January 2005
Cost Description
Unit Wks
Rate
Total
Notes
Nr
40.00
Wks
14
186.00
Each
Each
14
2
5.00
20.00
40.00
Charged to overheads
2,604.00 Cost 12.50 with 1.50 bonus
Charged to overheads
Included in rates
Nr
120.00
120.00
Nr
150.00
150.00 1% of labour
Wks
14
10.00
Contract Works
Mobiles Calls
Compound
Nr
140.00
As foreman in P02
60.00 Own units
60.00
As foreman in P02
To/From Site
To/From Site
Nr
Nr
2
1
18.00
-
Sum
Nr
1
1
20.00
450.00
36.00 In rates
In rates
9.3%
20.00
450.00 As quotation
3,730.00
P14 Notes
Sections P01, P10-13 = Nil cost
Cost Base June 2002
Page 4 of 16
Last Edited January 2005
Cost Description
Unit Wks
Rate
Wks
14
36.15
Wks
14
30.00
Nr
100.00
Nr
250.00
250.00
Nr
200.00
200.00
Nr
100.00
Total
Notes
Additional Costs
Percentage of Contract
4.0%
1,601.10
Cost Description
Unit
Wks
Rate
Total
Notes
Wks
14
42.00
Wks
Wks
Wks
14
14
14
15.00
35.00
50.22
5.0%
1,991.13
ADDITIONAL COST
Page 5 of 16
Last Edited January 2005
Page 6 of 16
Last Edited January 2005
Preliminaries Summary
Notes
Category
Total
Comment
-
Site Costs
Preliminaries %
Preliminaries Costs
P01 Employers Requirements
Ref
01
02
03
04
05
06
Category
Cost Description
Unit
Wks
Rate
Total
Comment
Accommodation
Telephone
Connection/Installation
Call Charges
Equipment
Others
-
Category
Cost Description
Unit
Wks
Rate
Total
Comment
Contracts Manager
Programmer
Project Plan
Site Plan
Quantity Surveyor
Agent
Engineer
Support Staff
Site Forman
Trade Forman
Watchman
Others
-
Page 7 of 16
Last Edited January 2005
Category
Cost Description
Unit
Wks
Rate
Total
Comment
Site Office
Mess Room
Drying Facilities
Storage
Containers / Stongbox
Toilets
Others
-
Category
Cost Description
Unit
Wks
Rate
Total
Comment
Category
Cost Description
Unit
Wks
Rate
Total
Comment
Travel Allowances
Lodging Allowance
Parking Charges / Costs
Congestion Charges
Insurances %
Employers Liability
Contract Works
Others
Unrecoverable Costs
Exclusions
Theft
Inclement Weather (Exceptional)
Overtime
Unproductive Time
Costs Excluded In 'All In Rates'
Others
-
Cost Description
Unit
Wks
Rate
Total
Comment
Page 8 of 16
Last Edited January 2005
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
Category
Cost Description
Unit
Wks
Rate
Total
Comment
Setting Out
Access Roads / Paths
Provide
Maintain
Hardstandings
Pumping & Dewatering
Hoardings & Fencing
Advertising & Notice Boards
Support Existing Structures
Protection
Weather (Water, Temperature)
Site Features
Maintain Live Services
Finished Work
Materials
Others
-
Cost Description
Unit
Wks
Rate
Total
Comment
Page 9 of 16
Last Edited January 2005
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
Category
Cost Description
Unit
Wks
Rate
Total
Comment
Category
Cost Description
Unit
Wks
Rate
Total
Comment
Page 10 of 16
Last Edited January 2005
Category
Cost Description
Unit
Wks
Rate
Total
Comment
P12 Adjustments
Ref
01
02
03
04
05
Category
Cost Description
Unit
Wks
Rate
Total
Comment
Category
Cost Description
Unit
Wks
Rate
Total
Comment
P14 Notes
Page 11 of 16
Last Edited January 2005
Page 12 of 16
Last Edited January 2005
On smaller sites, Contracts Managers and Quantity Surveyors (with their attendant costs)
usually form part of a builders overhead charge. However these costs may be moved to
Preliminaries where such staff:
higher plant on/off costs, skips licences, restrictions and waiting time
Similarly very remote sites, where there are limited sources of supply can incur
significant amounts of time lost in transit, higher plant on/off costs, etc.
Regulations limiting hours, noise, etc., as set out in other sections could lead to
unproductive hours
Working in or near occupied premises - for example works to a partially occupied shop
or school could require higher allowances for:
A project program should be used to identify the potential for overtime and can
assist in identifying potential period of unproductive time.
Page 13 of 16
Last Edited January 2005
Inclement Weather - for example works to the exteriors of building, especially works
involving re-roofing.
Unproductive time where trades cannot work due to exceptional wind, rain,
frost, etc.
Most rates make a limited provision for inclement weather. However the decision to
allow an additional cost is usually a case of balancing in the risks of loss against other
works you are likely to be available for those trades to undertake during the same
period.
Allowance should be made to protect or cover in certain works in P07
A substantive allowance would be required if you had to complete un-seasonal works
(such as external decorating in winter) where you had sufficient internal work over
the same time period.
Page 14 of 16
Last Edited January 2005
Alternatively builders may, in some circumstances, be able to set out their own terms
and as such reduce their risk and costs
P12 Adjustments
In costing preliminaries contractors will also need to take care to ensure that they have
not duplicated any costs included in the rated work or in the off site overheads.
Furthermore care must be taken to ensure that costs are not duplicated within the
Preliminaries section. For example a foreman allowed for in P03 may undertake much
of the safety works required in section P06. Ideally the duplicated costs would be
removed fro the relative section and a note inserted explaining how allowance has been
made
Alternatively the duplicated charge could be noted and deducted in this section
Page 15 of 16
Last Edited January 2005
P14 Notes
Most Preliminaries calculations require a significant level of judgement and it is
recommended that estimators record the significant factors affecting their views. These
notes are often invaluable when analysing performance or considering the costs of
future projects
Page 16 of 16
Last Edited January 2005