Preliminaries & margin

What are construction preliminaries and margin?

Construction preliminaries are the cost and overheads associated to the Builder with managing a project.

Construction margin is the profit that the Builder applies to a project.

Factors to considering when calculating construction preliminaries on a project? 

Before calculating the construction preliminaries on a project, it is important to understand the drawings & complexity of the project then work out the construction program/duration (gantt chart). 

The duration of a certain project will allow the estimator to complete the preliminaries based on how many weeks a certain project is calculated to run for. 

Items to consider and includes in your preliminaries are: 

• Site staff

• Office staff

• Insurances

• Site accommodation

• Temporary services

Key considerations when choosing a margin on a project at tender stage?

• Competitors (Other Builders tendering for the project)

• Capacity to build the project

• Coverage of subcontractor quotes

• Complexity of the project

• Potential price increases of material

What can clients (Builders) expect from Think Estimating? 

• Transparency at tender review

• Consideration and allowances in the estimate for build ability issues

• Feedback on risks and opportunities on subcontractor pricing

• Feedback on the current market & competitors