2 min read

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5 days ago

In one of my previous articles, I mentioned “Other associated expenses for the project”. In construction, we refer to them as preliminaries, or “prelims”. Prelims are construction costs that don’t directly contribute to the building’s physical structure. To put it simply, anything you need before and during physical construction, like permits, insurance, renting or purchasing equipment, site offices, storage areas, utilities, testing materials, security, scaffolding, etc., all fall under preliminaries. So, why are preliminaries important?

Project Management: Preliminaries make project management more effective because they provide the necessary resources and documentation for a smooth and compliant project.

Safety: They ensure compliance with safety regulations.

Risk management: They assist in managing potential risks associated with construction sites.

Profitability: By properly accounting for preliminaries, contractors can maintain their desired profit margins.

Preliminaries are essential to any successful project. There are very rare situations when preliminary costs might be minimized or even excluded completely- typically, in situations like that, they are usually considered part of the general overhead. If a project is straightforward enough, some preliminary expenses may be reduced or eliminated. Examples include:

Minor site preparations: Clearing a small area of debris or vegetation, or leveling a small area.

Minimal site security: A small temporary fence or a simple “KEEP OFF” sign. Anything that doesn’t require significant expenses.

It’s important to note that there are considerations that need to be taken into account. Just because some preliminary costs are negligible in one project doesn’t mean they are negligible in others. Before eliminating any preliminary costs or removing them entirely from your budget, it’s important to consult a trained professional. Not having the right preliminaries on your budget can lead to delays, going over your budget, and in some cases, legal ramifications. Which is why picking the right Estimator/QS (Quantity Surveyor) is very important.

I hope this information has been helpful. Take care until next time.