When working on a construction project, there are costs which aren’t immediately obvious, and are often overlooked. Just because a cost is not directly related to the works doesn’t mean it’s not a cost related to the works. If you’re a Quantity Surveyor, you need to know what these costs are, as missing them can land you in a heap of trouble. In this article, we’re going to cover preliminaries (or prelims). Exploring what they are, and how you can make sure they’re included in your price and valuations.
So what are prelims? Well, put simply, they’re the costs and activities needed to set up, manage and support a construction site and project. However, they don’t actually become part of the finished building. Okay, that’s useful – but specifically, what are the costs included in preliminaries? Well, according to RICS:
This includes “management and staff, site establishment, temporary services, security, safety and environmental protection, control and protection, common user mechanical plant, common user temporary works, the maintenance of site records, completion and post completion requirements, cleaning, fees and charges, site services and insurances, bonds, guarantees and warranties.
A full description of the items to be included in the preliminaries can be found in the: RICS New Rules of Measurement: Detailed Measurement for Capital Building Works (NRM2).”
So where are preliminaries often overlooked?
- When submitting a price for the works
- During the interim valuation cycle
- Within prolongation claims
Another important point with preliminaries is that they’re often time-related as well as cost-related. For example, site accommodation, supervision, or security might be priced on a weekly or monthly basis, which means they can increase if the project runs longer than planned. This is why prelims are closely linked to extension of time claims and prolongation costs. As a QS, you need to understand both the fixed and time related nature of these costs. And make sure they’re properly accounted for if the programme changes.
In conclusion, preliminaries may not form part of the finished building, but they are the backbone that keeps a project running smoothly. Overlooking them can lead to under-pricing, undervaluing works, or losing out on legitimate entitlements. As a Quantity Surveyor, it’s your responsibility to recognise, capture and manage these costs properly. Whether at tender stage, during valuations, or when assessing claims. Get this right, and you’ll protect your company’s bottom line while also strengthening your reputation as a commercially astute QS.
