What are Prelims in Construction?

When budgeting for a construction project, you may come across the term ‘prelims’ or ‘preliminary costs.’ But what are prelims in construction, and why are they important? Understanding preliminaries will enable you to discuss them with your contractor or tenderers. You may get their costs reduced a bit – at the very least you’ll learn why they’re so crucial to your project.

So, what are Prelims in Construction?

Prelims refer to the essential expenses associated with a construction project that are not directly linked to the physical building work. These costs cover the necessary set-up, management and logistics that enable the project to proceed. In fact, the project couldn’t even start without them.

Prelims typically include:

Site Set-up and Establishment – Temporary site facilities such as welfare, stores and office units, fencing, signage and security measures.

Access Equipment – Scaffolding, trestles, etc.

Health and Safety Requirements – PPE (hard hats, safety boots, etc.), site inspections, servicing and inspecting plant, risk assessments.

Project Management – Supervision, site foremen, and administration.

Temporary Services – Water, electricity, IT and drainage etc. before permanent connections are established.

Insurance and Compliance – Public liability, employer’s liability and insurance of the works, permits, health and safety provision and building control costs.

Waste Management – Skips, waste disposal, and recycling facilities.

Why are Preliminaries Important?

Prelims play a crucial role in making it possible for the team to do their work. How could foundations be dug if the digger hadn’t been serviced or there was no Site Manager to tell operatives what to do?

While some may view prelims as additional expenses, they are in fact vital investments that ensure:

• A secure, safe, properly equipped, compliant worksite

• Safety for workers and site visitors

• Efficient coordination and project management

• Compliance with standards, regulations and legal requirements

How are the Costs of Prelims Calculated?

Preliminaries are typically calculated on the cost per week for the duration of the contract, sometimes and on rare occasions they may be calculated on a percentage of the contract value or a fixed sum based on project specifics. The size, duration, and complexity of the project will influence the proportion of costs allocated to prelims.

The planning of how the project is to be built will start with the facilities, equipment, management and expertise needed to get the work done efficiently. Once the necessary items have been identified, the costs will be calculated and may be expressed as a percentage of contract price. That figure or percentage may be haggled over, but reducing the prelims themselves is likely to be a false economy.

A smaller project with minimal site set-up and routine operations may have lower prelim costs, whereas a large-scale project requiring high level project management, extensive health, safety and welfare measures, additional office accommodation, site security and logistics will more than likely have a higher preliminary cost.

Can Prelims Be Optimised?

Yes, they should always be optimised, but does this mean penny-pinching? No. The correct prelims (the actual facilities, etc. provided) will pay for themselves in site efficiency, quality of work, smooth progress, keeping up with the programme and site safety. It makes sense that if the site is well set up, the management and equipment are good, materials, plant and staff to use them are organised for the right time, etc. then the project will be well on the way to success. Of course, good staff working to high standards are essential to a successful project, but if the prelims have been skimped or not properly planned, they won’t have the chance to give of their best. Important aspects to think of include the following:

Detailed project planning – Ensuring that the required materials, facilities and management are accurately sourced and scheduled from the outset.

Efficient site set-up – Site workers can’t give their best on a badly set up site.

Selecting cost-effective services – Sourcing best value temporary power, water, hired in site accommodation, waste management, security, etc.

Minimising waste – Implementing sustainable practices to reduce excess material disposal.

Conclusion

Understanding what prelims are and what they contribute in construction is key for anyone involved in a building project. Those closely involved in construction cannot help understanding prelims, but for clients, or others less regularly involved, these costs are absolutely fundamental to ensuring a safe, compliant, productive and well-managed site, and although they may not be directly linked to bricks and mortar, they are essential for a successful build.

If you’re planning a construction project and need expert guidance on budgeting and preliminary costs, get in touch with Saunders Brothers today. Our experienced team can help you plan efficiently and deliver a high-quality project from start to finish.