Date Written: 2023-08-30
When it comes to estimating construction costs, one crucial aspect that often requires careful consideration is the cost of preliminaries. Preliminaries, also known as "site costs" or "general conditions," encompass various expenses and activities necessary to facilitate and manage a construction project. In this blog post, we will explore the key components involved in estimating the costs of preliminaries.
Preliminaries cover a wide range of expenses that are not directly related to the physical construction activities but are essential for the project's overall success. These costs typically include:
Accurately estimating preliminary costs is crucial for proper project planning, budgeting, and financial management. Here's a step-by-step process to help construction companies estimate preliminary costs effectively:
Thoroughly examine the project scope and specifications to identify the unique requirements and challenges associated with the site and project. This information will help determine the specific preliminary costs to be considered.
Create a detailed breakdown of the preliminary activities required for the project. This includes identifying tasks such as site setup, temporary facilities, permits, and project management. Each activity should be carefully analyzed to estimate the associated costs.
Obtain quotes and pricing data from reliable suppliers, contractors, and vendors for the various preliminary activities. This will provide a basis for estimating costs accurately.
Account for site-specific factors that may influence preliminary costs, such as site location, access, ground conditions, and local regulations. These factors can significantly impact the overall cost estimation.
Utilize appropriate cost estimation techniques, such as analog estimating, parametric estimating, or detailed bottom-up estimating, to calculate the costs of each preliminary activity. Consider using construction estimating software or tools to streamline the process and improve accuracy.
Allocate a contingency allowance to account for unforeseen events or changes that may arise during the project. A standard contingency range of 5-10% is often recommended, but the specific percentage should be based on project complexity and risk assessment.