Prelims (Extract of TFPBW) v1 PLUS Cover v1 PDF

Preliminaries
(General Site Costs)
A Guide to the Pricing and Use of

Preliminaries in the Formulation of
Budgets, Quotations and Tenders.
PRELIMINARIES (GENERAL SITE COSTS)

The CIOB Code of Estimating Practice defines Preliminaries as the cost of
administering a project and providing general plant, site staff, facilities, and site based
services and other items not included in the rates.
To further define Preliminaries and assist builders in their pricing we have divided the
pricing process into five sub-sections:
A. The Importance of Understanding Preliminaries
B. The Three Step Approach to Pricing Preliminaries
C. Preliminaries Priced Examples
D. Further Advice on Pricing Preliminaries
E. The Preliminaries Tables
F. Using the Preliminaries Tables
A. The Importance of Understanding Preliminaries

Pricing the Preliminaries probably requires more judgement than any other cost area. It
requires that you have a clear understanding of what costs have been allowed within the
rated work, what general costs will be required to run the site and what costs are
allowed for within overheads. For many businesses these distinctions are not clear-cut.
For example, a smaller contractor will rarely separate and charge each hour of a
managers or a foremans time into:
1) completing trade work,
2) managing work on site,
3) pricing prospective projects
Moreover, to accurately price Preliminaries suggests that you are able to predict and
cost how a project will turn out (including a suitable allowance for all the problems that
you will incur)
Some builders with experience of a particular type of works may allow a percentage for
the Preliminaries (excluding Provisional Sums, etc.) based on previous projects.
The percentage approach can, however, be prone to risk for less experienced builders
who lack an understanding of the costs involved. For example, over the last week, we
have discussed projects with clients who have costed preliminaries varying from:
a 4.5% allowance for a specialist company tendering for a large new project
a 9.5% allowance for a new house
a 24% allowance for a small company tendering for a particularly tricky

refurbishment (lots of scaffolding and provisions for working in an occupied
premises)
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
B. The Three Step Approach to Pricing Preliminaries

The accurate pricing of Preliminaries requires that builders anticipate all those general
site costs associated with a project. However, this is an area that is not always given
the attention of the rated work and few contractors will approach this area of pricing
in the same way:
Generally speaking the more difficult a project is to manage the higher the
preliminaries costs will be. Most of these difficulties or costs will be evident in the
projects particulars. A lack of design, poor access, onerous contractual conditions, dual
use of the site by others, etc.
We advocate a three step approach to the pricing of Preliminaries
1) the first step is to understand and price the known (or definite) costs
2) the second step is to consider and cost the commercial factors.
3) the third step is to consider how these costs and risks are to be allowed for
within the tender presentation
This three step process allows you to clearly identify the commercial (or variable)
allowance within the Preliminaries element during the adjudication process. This is
especially important if you are considering reducing the tendered sum
Step 1 - Pricing the Known Costs

Having established an accurate cost for the work, it is important for the estimator to
under-stand all the key factors relating to the project so that the predicable or known
costs of the Preliminaries can be calculated. These are the costs that you know that you
will definitely incur
Examples of the projects key factors
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
Works by the main sub-contractors
An outline security and safety plan
A list of the key contractual requirements
Any risks (to be noted and priced in Step 2)
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
Step 2 Pricing Commercial Considerations

The second and more difficult factor in pricing preliminaries is the balancing the risk
and reward against the likelihood of securing the work. This will depend upon:
the desire to secure work
the suitability of the work (including experiences of similar projects, skills,

weather, etc.)
the contractual risks
miscellaneous other factors (prestige of the works, etc.)
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
outstanding tenders (and the likelihood of success)
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 or sub-contracted to others
offset within the tender through the use of exclusion clauses (usually agreed
prior to tender)
instituting procedures and training
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.
Step 3 Presenting Preliminaries in the Tender Documentation

Care should be taken to ensure that any areas of uncertainty have been clarified and,
where appropriate, excluded in the tender presentation
The presentation of Preliminaries costs, like rated work, can have a significant effect on
both cash flow and profitability and these areas are further considered in the Presenting
Tenders section.

Page 3 of 16
C. Preliminaries - Priced Examples

For the purposes of these examples we have used a simple bungalow for the first
calculation C1. We have then considered the extra over cost of the Preliminaries if we
were to undertake a similar amount of work on similar bases but in:
C2 the form of a large extension to an existing building
C3 an inner city location
C1. A New Bungalow (60m2)

Based on a 14 week project, (rated cost 40,000) with architectural supervision
(including CDM regulations)
The site is reasonably secure site, with good access located on the outskirts of town.
The site owner (and client) is coving all the development costs including insuring the
property and supplying the electricity, water, etc., from an adjacent property.
Category
Cost Description
Unit Wks
Rate
Total
Notes
P02 Management & Staff

Project Plan
Contracts Manager
Site Foreman
Quantity Surveyor
Charged 2 hrs / day + bonus
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
Valuations and final account
P03 Site Accommodation

Site Office / Toilets
On / Off site
With drying facilities
70.00 Cleaning only

40.00 Owned - no hire
P04 Attendant Labour Costs

Attendance On DSC
Cleaning On Completion
Included in rates
Nr
120.00
120.00
Nr
150.00
150.00 1% of labour
Wks
14
10.00
P05 Miscellaneous Labour Costs

Insurance's
Contract Works
P06 Facilities & Services

Telephone
Health Safety & Welfare
Security
Mobiles Calls
Compound
Nr
140.00
As foreman in P02
60.00 Own units
60.00
P07 Temporary Works

Setting Out
As foreman in P02
P08 Mechanical Plant

Excavating Equipment
Mixers / Compactors
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
P09 Non-Mechanical Plant

Small Plant & Hand Tools
Erect, Dismantle, Hire
Scaffolding (External)
Percentage of Contract
9.3%
20.00
450.00 As quotation
3,730.00
Site Works 40,000
P14 Notes
Sections P01, P10-13 = Nil cost
Cost Base June 2002

Page 4 of 16
C2. A New Extension (Additional Costs)

In this second example we consider some of the additional costs over and above C1,
that could be incurred in connecting a new extension to an existing building
Category
Cost Description
Unit Wks
Rate
Charged extra 3hrs week
Wks
14
36.15
506.10 Additional clients needs
Wks
14
30.00
420.00 After breakthrough in rates
No noise before 8.15am
Nr
100.00
100.00 Partial charge for some delays
Making building secure
Nr
250.00
250.00
Nr
200.00
200.00
Nr
100.00
125.00 Some double handling
Total
Notes

Site Foreman

Cleaning As Work Proceeds

Unproductive Time

Security
P07 Temporary Works

Maintain Live Services
P11 Contractual Conditions

Limited Working Space
Some of site storage
Additional Costs
4.0%
1,601.10
Cost Base June 2002
C3. An Inner City Project (Additional Costs)

The cost implications of working on inner city projects can be significant, for example:
limited access, providing support for neighbouring properties, increased security,
limited working hours, special licences or permits (i.e. for scaffolding, skips, etc.)
In this example we consider the some of the additional costs over and above C1
associated with travelling, over and above those of the preliminary and overheads costs
not shown on the C1 site. No allowance has been made for any congestion charges or
car parking fees.
Category
Cost Description
Unit
Wks
Rate
Total
Notes
Wks
14
42.00
588.00 Off site parking allowance
Wks
Wks
Wks
14
14
14
15.00
35.00
50.22
210.00 Own staff only

490.00 Additional to overhead allowance
703.13 Total as paid to operatives

Parking

Travel Allowance
Travel Allowance
Unproductive Time
1 vehicles petrol allowance

Use of own vehicles
Average 45min per day
5.0%
1,991.13
ADDITIONAL COST
Cost Base June 2002

Page 5 of 16
D. General Advice on Pricing Preliminaries

This section sets out a number of methods that builders use to further consider
Preliminary costs. Understanding the specific data calculated from part B, Step 2
together with methods 1 3 below provides the user with significant information about
how variations to the duration and value of the project can affect the tendered sum, as
well as the risk, profitability, cash flow of the project.
In most cases the analysis proposed in methods 1 to 3 can be simply achieved by setting
pricing out in added columns on your check list.
Method 1 Using Set Up, Fixed and Variable Cost Analysis

Builders most commonly separate their costs into three cost areas.
1) Set up Costs i.e. the initial costs involved in starting or setting up the site
2) Fixed Costs i.e. the on / off costs of moving plant
3) Variable Costs i.e. any cost that is relative to time or value such as
management, site huts etc
The advantages of this breakdown are set out in the Formulating Tenders section
Method 2 Using Ownership Cost and Hire Cost Analysis

Builders also vary in the way in which they charge for items. Contractors who own plant
such as site huts, scaffolding, etc., may wish to gain a competitive edge by charging
these items at cost (i.e. for delivery, set up, maintenance, removal, collection etc.,
together an allowance towards the capital cost (or depreciation).
Another contractor may elect to, or have to, allow the full hire cost
Method 3 Using Labour / Materials / Plant / Sub-Contract / Other Analysis

If an element of off-site overheads are to be charged on some parts of the Preliminaries
a breakdown of resources can be used to provide a breakdown of the relevant cost
areas
Method 4 - Using Percentages

As previously stated, some experienced builders like to consider Preliminaries on smaller
projects (like off site overheads) as a percentage of turnover. This approach requires a
significant amount of judgement.
One way to improve this approach, is to calculate the actual preliminaries costs of
similar completed projects for the first 12 sections of the Preliminaries Tables and then
consider these individual costs as percentages of the total cost

Page 6 of 16
The Preliminaries Tables

Date:
Preliminaries Summary
Notes
Category
Total
P01 Employers Requirements

P07 Temporary Works
P10 Miscellaneous and Unlisted
P12 Adjustments
P13 Specifier Costs
Comment
-
Site Costs
(As a % of Site Costs)
Preliminaries %
Preliminaries Costs
Ref
01
02
03
04
05
06
Category
Cost Description
Unit
Wks
Rate
Total
Comment
Accommodation
Telephone
Connection/Installation
Call Charges
Equipment
Others
-

Ref
01
02
03
04
05
06
07
08
09
10
11
12
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

Ref
01
02
03
04
05
06
07
Category
Cost Description
Unit
Wks
Rate
Total
Comment
Site Office
Mess Room
Drying Facilities
Storage
Containers / Stongbox
Toilets
Others
-

Ref
01
02
03
04
05
06
07
Category
Cost Description
Unit
Wks
Rate
Total
Comment
Transport & Haulage

Unloading & Distribution
Attendance On DSC
Cleaning As Work Proceeds
Cleaning On Completion
Reinstatement
Others
-

Ref
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
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
-

Ref
Category
01 Telephone
02
Connection/Installation
03
Call Charges
04 Administration
05 Health Safety & Welfare
06
General Provisions
07
C & D M Regs. 1994
08
Control Of Noise
09
Fire Protection
10
Others
Cost Description
Unit
Wks
Rate
Total
Comment
Page 8 of 16
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
Power & Lighting

Connect & Disconnect
Installation
Units Used
Fuels
Water
Connect & Disconnect
Installation / Standpipes
m3 Used
Temporary Drainage
Security
General Measures
Site Perimeter
Compounds
Other
Clearing & Disposal Of Rubbish
Drying & Humidity
Contractors Testing & Samples
Asphalt / Concrete
Seasonal Building
Others
-
P07 Temporary Works

Ref
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
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
-

Ref
Category
01 Cranes,
02
To / From Site
03
Erect / Dismantle
04
General Use / Standing
05 Piling
06
To/From Site
07
Erect / dismantle
08
09 Excavating Equipment

Cost Description
Unit
Wks
Rate
Total
Comment
Page 9 of 16
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29

Forklifts
To/From Site
Dumpers
To/From Site
Mixers / Batching Equipment
Limited Vehicle Access
Hoists
Mixers / Batching Equipment
Pumps
Breaking
Compressing, Consolidating
Wackers, Vibrators
Rollers
To/From Site
Finishing
Others
-

Ref
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
17
18
19
20
21
22
Category
Small Plant & Hand Tools

Hand & Power
CCTV (Drains)
Ladders & Access
Warning & Traffic
Traffic Control
Road Signs
Props & Trenching
Others
Surveying Equipment
Scaffolding (Internal)
Scaffolding (External)
Putlog
Independent
Alter & Adapt
Hire After First Month
Support
Access
Mobile & Towers
Coverings
Lifting Equipment
Other
Cost Description
Unit
Wks
Rate
Total
Comment

P10 Miscellaneous and Unlisted

Ref
01
02
03
04
Category
Cost Description
Unit
Wks
Rate
Total
Comment

Page 10 of 16

Ref
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
17
18
19
Category
Cost Description
Unit
Wks
Rate
Total
Comment
Defect Liability Period

Firm Price Allowance
Inflation Before Contract
Inflation During Contract
Cost Of Cash Flow
Local Authority & Utility Fees
Licenses & Fees
Bonds & Warranties
Performance Bonds
General Conditions
Special Conditions
Restrictions
Phased Work / Specific Order
Partial Possession
Limited Working Hours
Limited Working Space
Late Completion
Rates & Taxes
Professional Fees
-
P12 Adjustments
Ref
01
02
03
04
05
Category
Cost Description
Unit
Wks
Rate
Total
Comment
Deduct General Attendances (Double Entered)

Deduct Items Charged To Rates
Deduct Items Charged To Overheads
General Adjustment
-
P13 Specifier Costs

Ref
01
02
03
04
05
Category
Cost Description
Unit
Wks
Rate
Total
Comment
Defined Provisional Sums

Undefined Provisional Sums
Contingency
Dayworks
-
P14 Notes

Page 11 of 16
F. Using the Preliminaries Tables

In using the three step approach to pricing Preliminaries a check list, such as the
Preliminaries Tables, can be invaluable. The list is not comprehensive and builders will
need to carefully check the requirements of the tender documents and use their own
experience in ensuring that they have included all the costs
Considering The Cost Implications of Using the Preliminaries Tables

Builders will, when using the Preliminaries Tables, also need to consider the cost
implications of each heading or item for example:
P06 Water - allowance for: connection, installation, distribution system, removal,
making good, standpipes, tanks and pipe work.
P08 Excavation Equipment - allowance for: delivery to site, (possible standing
time), maintenance, collection from site.
P08 Scaffolding External - allowance for: delivery to site, erecting, protecting,
security, maintaining, checking and certificating, lighting, loss or damage,
adapting, dismantling, collection from site.
Factors Affecting Costs In More Than One Section

Preliminaries are usually priced on an individual basis considering the actual cost
implications of the project. If, for example, the work is in occupied premises, we would
probably need to establish the cost over a number of sections:
P02 - Management
P04 - Cleaning as work proceeds
P05 - Unproductive time
P06 - Heath and safety, maintaining temporary services
P07 - Protection of the works
P11 - Special conditions, limited working space

Employers requirements are usually as stated in the contract documents and should be
charged as such
P02 Management and Staff

A view should be taken as to the duration of the contract and how the project is to be
managed and administered.
This usually requires that relevant staff are charged out on a cost per week or month
over the contract period. Working foremen can be charged in the number of hours or
days spent in administering the works. Time should also be allowed for planning, etc, as
well preparing records for interim valuations and the final account.
Where a site foremen carries out other duties, normally priced within other sections of
the Preliminaries (such as setting out, safety work, etc.) care should be taken to ensure
that costs are not duplicated.
Page 12 of 16
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:
are based exclusively on one site (i.e. larger projects)
are contracted in for a specific project

The level of contractors site accommodation required will usually be self-evident and
should include: hard standings (P07), delivery, cost or hire, heating, cleaning,
collection, making good, etc. Temporary services for accommodation may be taken for
here or in section or P06

This section provides for general labour based tasks that may be required for the
project, such as cleaning attendance on sub-contractors
The unloading and distribution item is significant on sites with difficult access such as
high buildings where, for example: materials have to be moved to remote areas by hand

This section primarily allows for additional costs in providing labour such as transporting
workers to site together hourly costs such as overtime and unproductive time.
Examples of factors that would have a significant effect on the these costs would be
Location for example an inner city site could require higher allowances for:
Transport costs, time lost in transit, parking costs,
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:
Unproductive time due to higher levels of regulation, control, implementing

increased security, safety routines, limited working hours, etc., as set out in
other sections
Overtime rates or incentives to reduce complete certain areas of work during

times when the premises are closed or to reduce overall contract period
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
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.
P06 Facilities and Services

General costs, facilities and services required in running the site, administrative staff,
utilities costs, etc.
P07 Temporary Works

This section allows for any temporary works that that will be required in providing the
main or rated works. Costs vary from providing temporary access roads to specific tasks
such as setting out.
Particular attention is should be paid to the cost of securing and protecting both existing
buildings and services together with works in progress. Care also need to be taken to
establish ground conditions and water levels when constructing basements, tanks, drains
and forming foundations

The cost of most smaller plant (and fuel) will be included in the rates. However
provision should be made for bringing plant on to site and removing the same.
Larger plant that is not allocated to a specific area of the work (i.e. a tower crane)
would be allowed for within the Preliminaries. A smaller crane say brought in for the
some steel erecting would be charged to that area of the work
Care should also be taken to allow for the additional costs associated with phasing or
standing time if projects cannot provide a continuity of work

This section includes for a range of plant which may not be included in the rates
A detailed project program is often essential in making proper allowance for the more
costly items such as access equipment or scaffolding.
Specialist quotations should be sought for high, supporting or bespoke scaffolding or
lifting equipment where costs cannot always be predicted.
Page 14 of 16
P10 Sundries and Unlisted

This section can be used for any specialist or sundry Preliminary costs that do not
naturally fall within the other classifications
P11 Contract Conditions

The contract conditions section sets out a number of areas which may need to be
priced. The list can be expanded to include specific clauses within the contract and in
some cases costs within the development costs section.
How individual contractors approach pricing this area will vary significantly. A
contractor with an empty order book may be unconcerned about clauses requiring an
early start, a short contract period, whereas another contractor with a number of
secured contracts may budget for overtime charges and liquidated damages for late
completion.
Builders are generally advised to make allowance for any unrecoverable costs, For
example it is not uncommon for contractors to price concerns relating to:
Contract Administrators, where the have experience of: administrative problems,

poor design, indecision, late drawings, difficulty negotiating valuations,
Clients, where they have experiences of delayed payment or dispute
Lack of design information such as survey documents,
Contractual risks longer defects liability period, incomplete documents (i.e.

outstanding questions over rights of access),
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
P13 Specifier Costs

These are usually costs that have been defined by the Contract Administrator within the
specification, (such as Provisional Sums, Prime Costs, etc.) that are to be included
within a tender.
Whilst they must be included in the tender they should be kept separate if you are
comparing the cost of preliminaries with other works

Page 15 of 16
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

Prelims (Extract of TFPBW) v1 PLUS Cover v1 PDF

Enviado por

Dados do documento

Título original

Direitos autorais

Formatos disponíveis

Compartilhar este documento

Compartilhar ou incorporar documento

Opções de compartilhamento

Você considera este documento útil?

Este conteúdo é inapropriado?

Direitos autorais:

Formatos disponíveis

Prelims (Extract of TFPBW) v1 PLUS Cover v1 PDF

Enviado por

Direitos autorais:

Formatos disponíveis

Preliminaries

(General Site Costs)

A Guide to the Pricing and Use of

PRELIMINARIES (GENERAL SITE COSTS)

A. The Importance of Understanding Preliminaries

a 9.5% allowance for a new house

a 24% allowance for a small company tendering for a particularly tricky

B. The Three Step Approach to Pricing Preliminaries

Step 1 - Pricing the Known Costs

Works by the main sub-contractors

An outline security and safety plan

A list of the key contractual requirements

Any risks (to be noted and priced in Step 2)

Preliminaries (extract of TFPBW) v1

Step 2 Pricing Commercial Considerations

the desire to secure work

the suitability of the work (including experiences of similar projects, skills,

the contractual risks

miscellaneous other factors (prestige of the works, etc.)

outstanding tenders (and the likelihood of success)

offset or sub-contracted to others

instituting procedures and training

Step 3 Presenting Preliminaries in the Tender Documentation

Preliminaries (extract of TFPBW) v1

C. Preliminaries - Priced Examples

C1. A New Bungalow (60m2)

P02 Management & Staff

Charged 2 hrs / day + bonus

Valuations and final account

P03 Site Accommodation

With drying facilities

70.00 Cleaning only

P04 Attendant Labour Costs

P05 Miscellaneous Labour Costs

P06 Facilities & Services

P07 Temporary Works

P08 Mechanical Plant

P09 Non-Mechanical Plant

Site Works 40,000

Preliminaries (extract of TFPBW) v1

C2. A New Extension (Additional Costs)

Charged extra 3hrs week

506.10 Additional clients needs

420.00 After breakthrough in rates

No noise before 8.15am

100.00 Partial charge for some delays

Making building secure

125.00 Some double handling

P02 Management & Staff

P04 Attendant Labour Costs

P05 Miscellaneous Labour Costs

P06 Facilities & Services

P07 Temporary Works

P11 Contractual Conditions

Some of site storage

Cost Base June 2002

C3. An Inner City Project (Additional Costs)

588.00 Off site parking allowance

210.00 Own staff only

P04 Attendant Labour Costs

P05 Miscellaneous Labour Costs

1 vehicles petrol allowance

Cost Base June 2002