🏗️ Pricing Preliminaries in Construction Projects: Breaking Down the Invisible Essentials

Deen Gabriel
3 days ago
2 min read

In construction, where finishes and structural elements often steal the spotlight, preliminaries — or "Prelims" — quietly underpin every successful project. Often overlooked by clients, these costs represent the backbone of site setup, administration, and management. Pricing them accurately is both an art and a science, demanding a thoughtful blend of experience, site knowledge, and transparency.

💡 What Are Preliminaries?

Preliminaries are the non-permanent aspects of a project necessary to facilitate construction. They typically include:

Site establishment (fencing, signage, access control)
Temporary services (power, water, ablutions)
Safety & compliance (PPE, safety officers, insurance)
Site supervision (foremen, project managers)
Administration & communication (site office, equipment, documentation)

They do not refer to the building works themselves, but rather what enables those works to proceed smoothly.

📊 Why the “10% Rule” Isn’t Always Enough

While a rule of thumb suggests 10% of the total contract may be allocated to preliminaries, the truth is more nuanced. Factors influencing prelim costs include:

Factor	Impact on Prelim Pricing
Project duration	Longer durations increase overheads
Site location	Remote or urban sites add logistical cost
Contractor setup	Size and complexity of setup affects rates
Contract type	Lump sum vs. remeasure may shift approach
Safety requirements	High-risk environments require more spend

📐 Tips for Accurate and Transparent Prelim Costing

Itemize Clearly in Your BOQ Break down preliminaries into identifiable categories to justify cost and build client trust.
Align With Programme Duration Prelim costs are time-sensitive. Ensure alignment with the construction programme — delays can drastically alter actual spend.
Adjust for Site Conditions Access restrictions, noise regulations, or shared boundaries with occupied buildings should be factored in early.
Include Escalation Risks Especially on longer projects, inflationary risks on prelim services should be transparently indicated.
Explain to Clients Clients often see Prelims as a mystery. A brief note or annexure explaining the necessity of these costs can make all the difference.

🧾 Sample BOQ Entry: Preliminaries

Item Description                Qty  Unit     Rate     Amount
Site setup & fencing            1    Sum      R 25,000  R 25,000
Temporary utilities             1    Sum      R 18,000  R 18,000
Site office & equipment         1    Month    R 8,000   R 40,000
Health & safety compliance      1    Sum      R 12,500  R 12,500
Supervision & admin staff       1    Month    R 15,000  R 75,000
Insurance & permits             1    Sum      R 10,000  R 10,000
**Total Preliminaries**                           **R 180,500**

🔧 Final Thoughts

Pricing preliminaries isn’t just a technical task — it's about painting the full picture of project readiness. By carefully analyzing site needs, programme requirements, and client expectations, contractors can transform “hidden” costs into visible value.