ADMINISTRATION OF PRELIMINARIES ON CONSTRUCTION PROJECTS Estimators and Project administrators often administer preliminaries as either function of project cost

, project duration or adjudication parameters. Also, most contracts in the Middle East often include an item under preambles indicating a fixed method of administering preliminaries as either value related or based on project duration. These approaches do not agree with the logic of preliminaries because a number of problems as been identified with them and which in the long run are to the disadvantage of both the clients and contractors. Apart, administration of preliminaries has often been the cause of dispute between the consultant quantity surveyor and the contractors’ quantity surveyors on most contracts. The nature of preliminaries is such that it covers financial matters, which relate to the contract as a whole and not confined to any particular work section in the Bill of quantities. Contractor thus given an opportunity to put a price for all matters affecting its cost that arise out of the condition of contract, any special requirement of the client on his professional advice and for all temporary work necessary for carrying out the contract. As the construction work proceeds, the contractor is entitled for the payment of the total value of the work properly executed, less a specified percentage for retention as it will be unreasonable to expect contractors to finance construction operations without assistance from employers. All the standard forms include provisions for periodic interim payments to be made for these reasons. Two common methods of valuation of preliminaries that often used by contract administrators are monthly proportion of total preliminaries and proportion of contract value. In the first method, the cost of preliminaries is apportion over the contract duration on a constantly monthly basis, while in the second method, the preliminaries are paid to the contractor in proportion to the total value of the contract he has achieved at any time. Under both of these methods, any PC sums included in the contract must be deducted prior to calculation. The argument in support of these methods is that it saves time but a number of disadvantages have associated with their use.


storage compounds and site huts. it does not take into account that work may be behind programme to the extent that the complete preliminaries costs may be paid to the contractor before the work is completed. in the final account. and the erection of hoardings. Work related cost. Items valued on completion such as cleaning and drying out. Therefore. • • • Items valued in full or in part according to their usage. While items such as drying out the building and cleaning away on completion will be included in part prematurely. each item of preliminaries should be assessed individually and this permits a much more realistic and accurate approach to be adopted to suit the particular circumstances as shown below. Examples of such items are site fencing and temporary roads may have to be inadequately valued because they have to be completed early. establishment cost (front end cost). for the adjustment of preliminaries. Secondly. Site overhead cost Lump sum. such as wages of general foreman and cost of telephone calls and insurance. while other items may be included prematurely. such as scaffolding and plant. This process of breakdown preliminaries will be made very much easier and the results will be more satisfactory if the co-operation of the contractor is obtained. Once an agreement is made between both parties. These constituent parts are viewing from various cost parameters such as Time related/on going periodic cost. these amounts will then be available for valuation purposes and later.The first method often resulted into overpayment to the contractor because when proportioning preliminaries against contract period. construction of temporary roads. neither of them deals effectively with lump sums inserted in the preliminaries relating to items that will be executed early in contract resulting in under-valuation. • Certain items may be required at the outset and can accordingly be valued in full. if necessary. 2 . such as the provision of temporary site fencing. Terminal lump sum (back end cost) and Time and work related cost (combined). Items valued in proportion to the works executed.

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