Preliminaries .NOTE 01
Preliminaries are works involved in administering a project and providing site based services and general plant facilities. Section B of the SLS 573 covers these items which relate to the contract as a whole and are not confined to any particular work section. Providing these in a separate bill, the contractor is given the opportunity to price them. Any costs included in the preliminary items are not included again in the rates.
(Overheads are the costs which are included in the rates for support activities, such as site or head office staff or workshops, which are not covered by specific items in the Bills of Quantities. Thus, contractually speaking, preliminaries and OH & P are different items and the Contractor is not entitled to include preliminaries in new rates).
In the Preliminary bill following items of temporary works, which are not represented in the permanent work items, are included as necessary.
1. Project Particulars
2. Drawings
3. Site and Access
4. Description of the Works
5. Insurances
6. Performance bond
7. Supervision / staffing/ site management
8. Safety / health / welfare
9. Scaffolding
10. Safeguarding the work
11. Water for works
12. Lighting & power
13. Temporary roads
14. Site accommodations
15. Temporary fences, hoardings,
16. Name board,
17. Setting out, surveying, testing, etc.
There is no specific contract provision governing how to pay for preliminaries.
1st method – Some consultants pay for preliminaries in Interim bills considering the total contract time. (Time related)
Example: Total Contract Value = Rs: 1,000,000.00
Preliminaries = Rs: 200,000.00
Permanent Works = Rs: 800,000.00
Contract Period = 05 months
In each interim bill add Rs: 200,000.00 / 5 = Rs: 40,000.00 to the value of completed permanent works to arrive the total bill value.
2nd method – Some consultants pay for preliminaries in Interim bills calculating a proportionate value to the value of permanent works completed up to that interim bill. (Work related)
Example: Total Contract Value = Rs: 1,000,000.00
Preliminaries = Rs: 200,000.00
Permanent Works = Rs: 800,000.00
Contract Period = 05 months
Add Rs: (400,000.00 x Rs: 200,000.00)/ Rs: 800,000.00 = Rs: 100,000.00 to the value of completed permanent works to arrive the total bill value.
3 rd method – Reasonable Method
In both methods mentioned above, contractors are not paid immediately after they have completed the particular preliminary item mentioned in the B.O.Q.
Therefore consultants prefer to obtain the exact time of expenditure from the Contractor and pay accordingly. As per Clause 27.1 of the ICTAD / SBD / 01, the contractor has to submit a work program showing timing of all the activities in the B.O.Q. for the approval of the Engineer. At that time, Contractor can submit when he plan to carry out items mentioned in the preliminary bill. After obtaining approval for the work program from the Engineer, the Contractor can include his actual expenditure of preliminary bill items in to the respective Interim bill.
ICTAD Publication no: ICTAD / ID / 04 – Guidelines for the preparation of Bill no. 1 – Preliminaries for Building Works suggest how to pay for preliminaries in interim valuations. If the Engineer includes a payment scheme in the Contract Document, it can be followed during the post contract period. For example, it suggests paying 60 % on completion of the structure, 30 % in equal installment during contract period and balancing 10 % on dismantling and removal on completion for TEMPORARY OFFICE FACILITIES FOR ENGINEER.
How to analyses a preliminary item:
Preliminary item can be split into:
Fixed charges, the cost of which is considered to be independent of duration, that is to say charges that are not proportional either to the quantity of the work or its duration.
Time-related charges, the cost of which is considered to be dependent on duration, that is to say charges that are directly proportional to either the quantity of the work or its duration.
Employer’s requirements – Facilities / Temporary Work / Services
Example – Temporary Accommodation
The contractor shall provide suitable accommodation for the clerk of works, with a minimum floor area of 20 m2 including desk, four chairs, filing cabinet and all necessary air conditioning, lighting and cleaning.
Data
Contract period: 144 weeks, Transport to and from site: Rs: 15,000.00 per trip, Hire of container hut: Rs: 3,000.00 per week, Hire of furniture, etc.: Rs: 500.00 per week
Fixed charges
Transport to and from site 2 trips × Rs: 15,000 | = | 30,000.00 | |
Erection 10 hours & Dismantle 5 hours | = | ||
15 hours labourer @ Rs: 1,500 | = | 22,500.00 | |
Total of fixed charges | = | 52,500.00 | |
Time related charges | |||
Hire of hut 144 weeks @ Rs: 3,000 per week | = | 432,000.00 | |
Furniture and other 144 weeks @ Rs: 500 per week | = | 72,000.00 | |
Electricity bill for A/c and lighting: | = | ||
144 weeks @ Rs: 400 per week | = | 57,600.00 | |
Cleaning – 2 hours per week × 144 weeks | = | ||
288 hours @ Rs: 125 | = | 36,000.00 | |
Total of time related charges | = | 597,600.00 | |
Total (fixed and time related charges) | = | 650,100.00 |
Example – Site Fencing
The contractor is to allow for enclosing all boundaries of the site. It shall be the contractor’s responsibility to provide all necessary precautions, protection and security to safeguard the works using fences, hoardings, gates, etc. as considered necessary.
Data | ||||
Contract period: 144 weeks | ||||
Fencing | ||||
Fixed charges; erection and taking down | = | 20,000.00 | ||
50 metres of solid fencing; 1.8 metres high @ Rs: 300.00 / m | = | 10,000.00 | ||
1 pair gates and security | = | 5,000.00 | ||
35,000.00 | ||||
Maintenance and repairs | ||||
1 hour per week labourer × 144 weeks @ Rs: 125 | = | 18,000.00 | ||
Total | = | 53.000.00 | ||
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