What are preliminaries in construction?

Preliminaries, or prelims, are the costs of running a construction project that aren't tied to any single item of work. They cover site setup, site management, welfare facilities and temporary works. Contractors price them as a separate section of the tender, split into fixed costs and costs that run with time.

The preliminaries meaning matters most at two points: when the job is priced and when it's valued. Estimators build prelims up at tender, and QSs value them every month once the job is live. In a bill of quantities they form their own section ahead of the measured work, and construction estimating software factors them in at tender settlement alongside overheads and profit.

What do preliminaries include?

Preliminaries include anything the contractor needs to run the site that isn't part of a measured item. Typical prelims cover:

• Site management and supervision, such as the project manager and site manager
• Site setup, including cabins, welfare, hoarding and temporary services
• Plant and equipment used across the site rather than by one trade
• Temporary works, scaffolding and access
• Insurances and bonds tied to the contract
• Security, cleaning and waste removal

What's the difference between fixed and time-related preliminaries?

Fixed preliminaries are one-off costs that don't change with the length of the job, such as setting up and clearing the site compound. Time-related preliminaries are charged for every week the site is open, such as site staff, cabin hire and welfare.

The split matters most when the programme slips. If the job runs late, time-related prelims keep building, and whether the contractor recovers them depends on who caused the delay under the contract.

How are preliminaries priced in a tender?

Estimators price prelims from the programme. Time-related items get a weekly cost for the weeks they're needed, while fixed items are priced as single sums. Some contractors move part of their prelims into the measured rates, which makes the prelims section look lean but hides real site costs.

Prelims are also where competing tenders differ most, so they're worth comparing line by line before submission. Evaluate includes tender adjudication for benchmarking costs and challenging assumptions before a bid leaves the business.

How are preliminaries valued during a contract?

Once the job is live, the QS values prelims each month alongside the measured work. Fixed items are valued when they happen, and time-related items in step with progress on the programme.

That makes prelims an early warning. If time-related costs are running ahead of the value recovered, the job is either running late or was underpriced at tender, which is exactly the kind of risk commercial directors watch on every live contract.

How does Eque2 handle preliminaries?

In Evaluate, estimators factor prelims, adjustments, overheads and profit against every resource at tender settlement, so the margin build-up is visible before the bid goes out. When the job is won, the approved budget carries into project delivery with the prelims intact.

From there, construction cost management software tracks site costs against that budget as they're committed, so overrunning prelims show up while there's still time to act.

FAQs: preliminaries

What does prelims mean in construction?

Prelims is short for preliminaries: the costs of running a construction site that don't belong to any single item of work. They include site management, welfare, temporary works and site-wide plant. Prelims are priced as their own section of a tender and valued separately each month during the contract.

Are preliminaries the same as overheads?

No. Preliminaries are the costs of running one particular site, such as its cabins and site staff. Overheads are the costs of running the contractor's business, such as head office, spread across every job. Tenders usually show prelims as a priced section, with overheads and profit added on top as a percentage.

Can preliminaries be claimed for delays?

Time-related preliminaries can be claimed when the contract makes the client responsible for a delay. The contractor usually needs an extension of time and a valid claim for loss and expense, backed by records of what the extra site time cost. Without those records, recovering prelims for a late finish is hard.

About Eque2

Eque2 is the commercial and finance platform for construction, trusted by over 3,000 construction businesses. Construct brings job costing and contract management to the Sage or Xero accounts a contractor already runs. Evision runs construction commercial and finance management for larger contractors and housebuilders on Microsoft Dynamics 365 Business Central.