What Are Prelims In Construction Contracts?

Prelims, also known as preliminaries, are a crucial aspect of construction contracts. They encompass the costs associated with an entire construction project, rather than specific work sections or activities. Prelims can include various expenses, such as site overhead, scaffolding, and site powering.

These costs are essential for contractors and construction companies to complete the project but do not become part of the finished work. Preliminary costs can be one-time expenses or ongoing costs that begin at the project’s start and continue until its completion.

It is crucial for contractors to accurately estimate and allocate preliminary costs, as they often make up a significant percentage of the project.

Key Takeaways:

Prelims, or preliminaries, are costs associated with the entire construction project.
These costs are not part of the finished work but are necessary for project completion.
Preliminary costs can include site overhead, scaffolding, and site powering.
Contractors must accurately estimate and allocate preliminary costs.
Preliminary costs often make up a significant percentage of the project.

What do Prelims in Construction Include?

Prelims in construction contracts encompass a wide range of items and costs necessary for the successful execution of a project. These preliminary items are essential for contractors and construction companies to properly plan and manage the construction process. Some common examples of prelims include:

Site establishment costs: This includes expenses related to setting up the construction site, such as site clearance, fencing, and signage.
Temporary works: These are structures or facilities that are required for the duration of the construction project but are not part of the final structure. Examples include scaffolding, hoardings, and temporary access roads.
Site facilities: This includes the provision and maintenance of on-site facilities for workers, such as site offices, welfare facilities, and storage areas.
Health and safety costs: Prelims also encompass costs related to health and safety, including safety equipment, training, and inspections.
Site services: These are the services required to support the construction process, such as temporary power supply, water supply, and drainage.

In addition to these common preliminary items, there may be other specific costs that are unique to each construction project. The inclusion of prelims in construction contracts ensures that all necessary items and expenses are accounted for and properly managed, allowing for better project planning and cost control.

How to Calculate Preliminary Costs in Construction

Calculating preliminary costs in construction requires careful consideration and accurate estimation. One common method is to calculate these costs as a percentage of the overall project cost.

The percentage can vary depending on factors like the project’s size, scope, and location, typically ranging from 5% to over 15%. By understanding and applying the appropriate preliminary percentages, contractors can allocate the necessary funds for these essential expenses.

To calculate preliminary costs effectively, contractors must thoroughly review the construction contract and consult with project managers and owners.

This collaborative approach ensures that all parties are aligned on the items that qualify as preliminaries and the cost associated with each one. Contractors, being closest to the project details, are often in the best position to estimate these costs accurately and include them in their calculations.

Accurate preliminary cost estimation is crucial to avoid disputes and maintain the project’s contingencies and profit margin. By paying careful attention to these costs, construction professionals can ensure that the project is completed successfully within the allocated budget. It is essential to document and track all preliminary costs meticulously throughout the project to provide transparency and accountability.

In summary, preliminary costs in construction can be calculated as a percentage of the project cost. Contractors must review the construction contract, collaborate with project stakeholders, and accurately estimate the cost of each preliminary item. By following these steps, construction professionals can effectively allocate funds for these crucial expenses and complete the project successfully.

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