Builder’s Preliminaries and Site Costs - Cost Planner 24/06/18, 12:23 AM

something similar. This, I reckon, is the most important part of the cost plan or quote.

And, on most projects the builder’s preliminaries, supervision and site costs are one of the most expensive
parts. For example : on a 2 storey new commercial project the Builders tendered preliminaries were over
$390,000, and that was nearly 13% of the construction cost – plus profit was extra!

So what are they and why do they cost so much?

Setting up a building site for 6 or 12 months, or more, is like setting up a new factory or workplace outside
and in the weather (after, all, it is a temporary factory that produces a building) that has to perform,
produce and be safe… and then shutting it down and walking away.

All projects have this cost and some sites & projects are more expensive to set up, run and manage than
others – for example a multi-level CBD project on a tight & tricky site will be more expensive to run than a
single storey house on an outer suburban open greenfield site.

And so, the costs of building a building are not solely related to the amount of bricks & mortar alone. In
other words, you will pay for more than just the things that get nailed down and that you get to keep.

To get the job done, a builder must allow for the cost of setting up a safe, effective and workable building
site. They must run, organize, manage and supervise it.

As well as that there are other essential costs off the building site. There is all the office paperwork, the
cheque writing (or electronic funds transfers), finance costs, photocopying, letter writing, plan printing,
contracts, administration, permits, insurances, computers, cars and so on.

Typical Preliminaries Items

Here is a list of items typically included in Preliminaries when pricing a project.

Establishment of the site (Getting the site up and running… and then shutting it down)

Site survey,
Set out of the works,
Connections of temporary power, water, telephone,
Toilets, etc., sheds, offices, stores, other amenities,
Security, access & safety rails, anchors & edge protection, tarps, hoardings, covered ways, dust screens,
fences, guard rails, gantries, & the like,
Scaffold, lifts and cranes, supports, hoists, platforms, plant and equipment,

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Builder’s Preliminaries and Site Costs - Cost Planner 24/06/18, 12:23 AM

Roads, paths, tracks, footways,

Dilapidation surveys, photos, records,
Signboard, noticeboard,
Soil tests,
Authority charges,
Setup & de-mobilisation, etc.

Insurances, permits, paperwork, etc.

Obtaining and maintaining insurances, permits, fees, contracts

Inspections, tests, notices
Bank guarantee

Running costs (Keeping the site going)

Power & services, water, telephone, tools, deliveries, first aid

Documents, dilapidation surveys, photos, records, access, crossover, deposits, fees, de-watering, parking,
etc.
Safety equipment, hazard & traffic management, safe-working requirements, health/safety records &
analysis, supervision & training, induction, protective clothing; & the like
Security, protection, tarps
Scaffold, supports, cranes, lifts, hoists, plant, equipment
Hoardings, covered ways, dust screens, fences, guard rails, gantries
Roads, paths, tracks, footways, road crossing
Protect existing landscaping, structures & surfaces, etc.
Hire – Amenities and minor sundries, sheds / storage / offices
Site bins and cleaning
Client meetings.
Charts, programs and schedules to show and help maintain progress of trade and Subcontract
organisation.
Consumables

Final clean & handover (Some costs at the end of the job…)

Final clean – labourer, bins, bobcat, cleaner, disposal

Documentation, manuals, tests, guarantees, warranties
Site dis-establishment and clear
Cleaner
Labelling, handing over of keys.

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Builder’s Preliminaries and Site Costs - Cost Planner 24/06/18, 12:23 AM

Supervision, labourers, etc. (…A very important and expensive cost)

Site supervisor
Construction Manager
OH&S Officer, shop steward
Site labourers
Clerk of Works
Induction and training
Administration (both, on & off-site)

Overheads and other costs (…The business side of it)

Attendance & management

Off-site expenses, administration
Finance and cashflow,
Liability for making good defects after practical completion
Profit and risk.

Note: These items may each be priced as a fixed cost, $-per-hour, $-per-day, $-per-week (e.g. Amenities
hire, or on-site supervision labours), area based (eg. building cleaning prior to handover), or based on the
project size and cost (i.e. Profit).

In other words – some items may be :

fixed costs,
some may be time based or time sensitive,
some may be area or size or volume based
some may be location or site sensitive and
others percentage based

… or a combination of these.

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