Fig. 1:
Projects involved by respondents by type and value
| Sub-questions | Projects ($1 m – $5 m) | Projects ($5 m – $20 m) | Projects ($20 m – $100 m) | Projects ($100 m plus) | Not active in this_category of projects |
|---|---|---|---|---|---|
| Commercial all types (non-residential) | 17.86 | 25.00 | 32.14 | 57.14 | 14.29 |
| Residential work | 10.71 | 17.86 | 10.71 | 35.71 | 46.43 |
| Civil works | 7.14 | 10.71 | 17.86 | 14.29 | 60.71 |
| Refurbishment and alterations | 21.43 | 17.86 | 32.14 | 10.71 | 50.00 |
| Fit out works | 25.00 | 21.43 | 32.14 | 10.71 | 42.86 |
Impact of building price escalation (annual %) on estimating preliminaries
| Categories | Mean |
|---|---|
| Supervision, site staff, admin staff, labourers, etc. | 6.80 |
| Insurances, guarantees and fees, permits, paperwork, etc. | 6.40 |
| Running costs (keeping the site going – Staff excluded) | 6.00 |
| Final cleaning & handover, commissioning (some costs at the end of the job) | 5.87 |
| Head office overheads and other costs (e.g. finance, contingency, etc.) | 5.20 |
| Establishment/disestablishment of the site (getting the site up and running and then shutting it down) | 5.07 |
Administrative challenges in estimating preliminaries (Likert scale 1–5)
| Sub-questions | Mean |
|---|---|
| Understanding of the client’s main expectations, goals and specifications | 3.29 |
| Insufficient preparation time during the tender period | 3.24 |
| Costs of permits, consultants, special environmental requirements | 2.94 |
| Late responses from designers/engineers to queries raised | 2.88 |
| External factors, unions, pandemic (COVID) | 2.82 |
| Ambiguities/omissions within the tender or contract documents | 2.59 |
| Difficulty obtaining bank guarantees/insurance, financial markets | 2.59 |
| Unreliable historical cost information/subcontractor pricing | 2.41 |
| Providing for project IT services and client expectations on reporting | 2.41 |
| Lack of itemised bills of quantities for prelims | 1.76 |
Percentage of preliminaries costs per activities (scale 0–100)
| Sub-questions | Mean (%) |
|---|---|
| Supervision, site staff, admin staff, labourers, etc. | 44.57 |
| Running costs (keeping the site going – Staff excluded) | 12.48 |
| Establishment and disestablishment of the site (getting the site up and running, and then shutting it down) | 12.40 |
| Insurances, guarantees and fees, permits, paperwork, etc. | 11.51 |
| Head office overheads and other costs (e.g. finance, contingency, etc.) | 9.90 |
| Final cleaning & handover, commissioning (some costs at the end of the job) | 9.14 |
Types of schedules of preliminaries used at the estimating/tender stage
| Sub-questions | Total (%) |
|---|---|
| Company standard schedule (from Estimating Dept.) | 65.00 |
| Combination standard schedules and external sources e.g. quotations, pricelists | 30.00 |
| Company standard schedule (from Bid Manager/Finance Dept.) | 5.00 |
| Once off unique project schedule based on contract conditions | 0.00 |
| Industry-standard schedule based on standard proformas (ASMM, CIOB, MBA, RICS etc.) | 0.00 |
Buildability/constructability challenges in estimating preliminaries (Likert Scale 1–5)
| Field | Mean |
|---|---|
| Complexity of work, e.g. site restrictions, high lifting, material handling (Cranages, Alimaks, etc.) | 3.53 |
| Different methodologies adopted within contractors and subcontractors | 3.40 |
| Access and temporary works required in each construction stage | 3.27 |
| Alternative construction methods suggested by the construction manager | 3.13 |
| Having access to existing site facilities on REFURBISHMENT projects | 3.13 |
| Difficulties in clarifying methodology and programming the works at tender time | 2.87 |
| Difficulty in predicting weather-related events with construction phases | 2.73 |
| Temporary accommodations and site amenities, including subcontractors and client needs | 2.73 |
| Regulatory issues, codes and byelaws affecting site operations (dust, noise, etc.) | 2.67 |
| Storage and parking areas | 2.67 |
| Poor responses from designers/engineers to technical queries raised | 2.60 |
Most likely elements of preliminaries where costs increase/overrun occur, apart from any costs associated with a programme (delay or gain)
| Answer | % |
|---|---|
| Supervision, site staff, admin staff, labourers, etc. | 43.34 |
| Cranage, including associated labour | 20.00 |
| Final cleaning & handover, commissioning (some costs at the end of the job) | 10.00 |
| Site setup, including accommodation, hoardings, gantries, etc. | 10.00 |
| Running costs (keeping the site going – staff excluded) | 6.67 |
| Insurances, guarantees and fees, permits, paperwork, etc. | 6.67 |
| Waste during construction, rubbish removal, etc. | 3.34 |
Most likely elements of preliminaries where cost savings occur, apart from any costs associated with a programme E(delay or gain)
| Answer | % |
|---|---|
| Site setup, including accommodation, hoardings, gantries, etc. | 28.57 |
| Running costs (keeping the site going – staff excluded) | 23.81 |
| Waste during construction, rubbish removal, etc. | 14.29 |
| Insurances, guarantees and fees, permits, paperwork, etc. | 9.52 |
| Supervision, site staff, admin staff, labourers, etc. | 9.52 |
| Final cleaning & handover, commissioning (some costs at the end of the job) | 9.52 |
| Cranage, including associated labour | 4.76 |
List of suggested categories from the ANZSMM
| Contractual | Site conditions |
|---|---|
| 1. Working hours | 20. Charts, schedules |
| 2. Rates and wages and prices of materials | 21. Notice board |
| 3. Sub-letting | 22. Setting out works |
| 4. Progress and final certificates and | 23. Temporary installations |
| 5. Variations | 24. Services |
| 6. Dates for commencement and completion | 25. Telephone calls |
| 7. Bonus for early completion | 26. Temporary screens, fences, hoardings, guard rails, etc. |
| 8. Liquidated damages | 27. Temporary roads, tracks, crossing, etc. |
| 9. Rise and fall | 28. Temporary sheds, sanitary accommodation, etc. |
| 10. Exemption from duty sales or other taxes | 29. Duties and attendance |
| 11. Issue and return of documents | 30. Work outside the contract |
| 12. Discrepancies | 31. Supplied goods |
| 13. Submission of priced bills of quantities | 32. Samples |
| 14. Contract agreement stamp | 33. Testing |
| 15. Payment of taxes | 34. Advertising |
| 16. Notices, permits, fees | 35. Footpath levels |
| 17. Liability | 36. Plant equipment and attendant labour |
| 18. Bonds, guarantees | 37. Scaffolding |
| 19. Payment of extra monies | 38. Attendance |
| 39. Protection | |
| 40. Cleaning | |
| 41. Handing over | |
| 42. Defects liability |
Examples of preliminaries schedules from two Australian contractors under two different procurement methods
| Case A (construction only – BB) | Case B (design and build – DBB) |
|---|---|
| Labour and supervision | Supervision |
| Site supervision | Project Manager, Site Manager, Design Manager, Cost Planner, Administrator, Assistant Administrator, Design and Documentation Coordinator, Site Coordinators, Site Supervisors, Site Supervisors, Services Manager, Construction Planner, Quality Manager, Site Secretary, Tenancy Coordinator, OH&S Manager |
| Other | Contractors Labour |
| As built drawings and documentation, operation and maintenance manuals | Cleaning Labour and others |
| Insurances | Fees & insurances |
| Authority charges | Building administration fund (building control commission) |
| Authority service provider headwork fees and charges | Hoarding & gantry permits |
| Professional indemnity and insurance | Crossing fees |
| Contract works insurance | Value management facilitator |
| Public liability insurance | Consultants design fees |
| Professional indemnity & insurance | 5% insurance bonds |
| Workers compensation | Professional indemnity insurance |
| Plant & equipment | Contractors’ legal fees |
| Bank guarantees | Contractors all risk insurance |
| Security – Bank guarantees charges | Public liability insurance |
| Fees and charges for the erection of scaffold systems, hoardings and gantries, the establishment of construction zones, footpath closures and tower crane loading zones | Plant and equipment insurance |
| Building permit | Warranties and guarantees |
| Construction industry levy | Plant & equipment insurance (contractors plant) |
| Main site office purchases and consumables | Site purchases and consumables |
| Loose furniture signage | Safety notices/inductions/safety signage |
| Consumption costs | Establish first aid station and consumables |
| Car parking | Payroll delivery, postage, couriers, kitchen supplies, etc. |
| Plan printing | Plan printing for trade packages (procurement) |
| Information management & document control systems | Progress photographs |
| Courier charges | Parking costs for contractor employees |
| Small tools | Couriers |
| Small tools | Small tools, nails and charges, etc. – (Built personnel) |
| Site establishment | Site setup |
| Fencing, gantries, security gates | Hoardings, fences and gates |
| Hoardings, fences and compounds | Gantries and overhead protection – Site camp |
| Temporary roads tracks crossings | Make good pavements |
| Temporary fencing or tree protection fencing | Site signs |
| Temporary services | Temporary services |
| Site radio communications | Power consumption during construction |
| Temporary electrical services | Water consumption during construction |
| Temporary hydraulic services | Temporary water, sewer and fire protection – Site construction |
| Access lighting | Temporary electrical services – Site construction |
| Task lighting | Fire extinguishers on site |
| Telephone | Site telephones and radios – MC personnel |
| ICT | Site telephones and radios – Trade contractors |
| Site offices & accommodation | Site offices & accommodation |
| Construction worker amenities client office | Temporary site accommodation – MC & client personnel Worker amenities, change, ablution, etc. – Total workforce Site office equipment and furniture Site office running costs, consumables, etc. |
| General works | Surveying, cleaning and protection |
| Survey | Setout and survey – Base grids |
| Dilapidation survey | Setout and survey – Detail trade survey |
| Lift opening temporary barricades | Existing conditions survey |
| Waste management | Waste minimisation programme |
| Safety requirement including OH&S requirements | Rubbish Bin hire – Tenancy fitouts |
| Safety site access control | Progressive cleaning – Tenancy fitouts |
| Dust control | Cleaning |
| Progressive cleaning | Site security |
| Final cleaning | Protective clothing |
| Site security control | Protection of finished works |
| Safety equipment | Maintenance and maintenance of protection of finished works |
| PPE | Supervision during defects liability period |
| Jersey barriers | Defect rectification during defects liability period |
| Materials handling | Cranage |
| Tower crane | Fixed tower cranage for the works including crew, crane base, erection, dismantling, hire, running costs, maintenance, tower sections, landing platforms, jumping, ties, communications and sundries, etc. |
| Tower crane crew including driver and dogmen | Trade mobile cranage including erection, dismantling, running costs, etc. |
| Mobile cranes for beam & panel lifts outside to tower crane capacity | Mobile cranage for establishment of contractor and client site accommodation |
| Mobile crane for general steel erection, facade, loading, service etc. | Mobile cranage for establishment of trade contractor site accommodation |
| Scaffolds | Scaffold and construction work method |
| Scaffolds | Internal and external scaffold |
| Temporary structures | Provision and maintenance of temporary roads |
| Temporary screens prevention items | Gantries and overhead protection – Site construction |
| Elevated work ⦁ | Construction loads, temporary propping, perimeter and void safety rails attached to formwork etc. |
| Hoisting | Hoisting |
| Hoists, hoist driver, forklifts, loading platforms, banksman/traffic control | Man and material hoists for the works including driver, base, |
| flag men, concrete pumping equipment, pumps, lines, booms, etc. | erection, dismantling, hire, running costs, maintenance, sections, landing platforms, gates, jumping ties, communications and sundries, etc. |
| Elevated platforms, scissor lifts, boom lifts, knuckle booms, cherry pickers, swing stages etc. | Maintenance of permanent builders’ lifts |
Better procurement options and risk allocation for estimating Preliminaries costs
| Responses | % |
|---|---|
| Cost plus contracts or time and materials contracts | 33.33 |
| Construction management agreement/management contracting | 25.93 |
| Design and build (or novated D&C) | 11.11 |
| Lump sum (fixed price) contracts | 11.11 |
| Alliance/joint venture contracting | 7.41 |
| Procurement options are not that relevant | 7.41 |
| Term (unit price/schedule of rates) contracts | 3.71 |
Percentage of preliminaries costs time-related (scale 0%–100%)
| Sub-questions | Mean (%) |
|---|---|
| Time-related (for the WHOLE duration of the project) | 45.49 |
| Combined fixed charge and time charge during the WHOLE project | 19.83 |
| Fixed (once-off payment) | 18.95 |
| Time-related but for only a shorter duration or phase of the project (not required for all the project) | 15.73 |
Values (metrics) most useful in the pricing preliminaries categories
| Question | Site area m2 based | Project size (GFA) area based | Project size m2 height and volume considered | Project value $ | Other |
|---|---|---|---|---|---|
| Establishment and disestablishment of the site (getting the site up and running, and then shutting it down) | 26.67 | 10.00 | 14.29 | 6.45 | 19.35 |
| Insurances, guarantees and fees, permits, paperwork, etc. | 93.33 | 3.23 | |||
| Supervision, site staff, admin staff, Labourers, etc. | 20.00 | 28.57 | 9.68 | 19.35 | |
| Running costs (keeping the site going – Staff excluded) | 10.00 | 28.57 | 9.68 | 22.58 | |
| Final cleaning & handover, commissioning (Some costs at the end of the job) | 60.00 | 28.57 | 3.23 | 12.90 | |
| Head office overheads and other costs. (e.g. finance, contingency, etc.) | 53.33 | 22.58 |
Preliminary costs should be front-loaded into payment schedules
| Answer | % |
|---|---|
| Definitely not | 13.33 |
| Probably not | 13.33 |
| Might or might not | 33.33 |
| Probably yes | 26.67 |
| Definitely yes | 13.33 |