Why You Need To Understand Prelims
When you are undertaking a refurbishment project you will have to take into account the cost of prelims.
A builders tender document may have a figure for prelims
Prelims are elements of a project that are non productive but essential
Most people would call them overheads
These may be things that you cant start the project without or once the project starts you cant do without
Before the project starts you may need to pay an Architect , Quantity Surveyor or Structural Engineer
These are essential costs that you cannot complete the project without, but wont actually make you any money
If you are employing a Project Manager that will be classed as a prelim
Although the PM may be essential for pushing the project along and avoiding delays or extra costs to the project they will still be classed as non productive
You might be paying for site security or portable toilets and canteen facilities or a cleaner
These are prelims
Scaffolding, plant, water, temporary lighting are all prelims
When you look at a builder or subcontractors tender they might have put in a figure for prelims
When you break it down you will see that they are paying for office space or a Project Manager to run the job
You wont see the benefit of this but they will feel it’s essential for them to complete the work on your project
Prelims can add up to 20% onto the total project costs
That’s why its essential that you take these into account when stacking a deal
You will have to carefully consider each item that is classed as a prelim. You must decide if each of these is essential to the project
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