Pricing of Trade Preliminaries for Hume Super Clinic Project

This report details the process of pricing trade preliminaries for the Hume Super Clinic project. It begins by defining trade preliminaries and their importance in construction cost estimation, covering key categories like project parties, site descriptions, employer obligations, nominated sub-contractors, liabilities, and construction contingencies. The report then provides a practical application by calculating costs for various items including authorities fees, site clearing, contractor's insurance, site fencing, direct site labor, rubbish removal, temporary services, scaffolding, and contingency, providing detailed breakdowns and unit rates for each. These calculations are then summarized in a table, showing the itemized costs and total project cost, and includes a builders margin. The report concludes by referencing sources used in the analysis, providing a comprehensive overview of preliminaries pricing in construction.

Preliminaries 1
PRICING BILL OF QUANTITIES: PRELIMINARIES
First Name Last Name
Course
Professor’s Name
University
Date

Preliminaries 2
Introduction
Preliminaries forms the first part of the bill of quantities document and provides
valuable information and items which need to be priced by the contractors. There are a number
of items that are normally included by the tenderers in the trade preliminaries during the
estimation process (Untrusty-Group 208). Traditionally, there are a number of groups of items
that are normally included in the trade preliminaries. The group of the items include the project
consultants and parties, the description of the, relevant documents like drawings, the contract
type, form and condition, the contractor’s liability and employer liability (Abas 2019). In
addition ,the employer restrictions and obligations, nominated sub-contractor’s works, materials
and equipment from the nominated suppliers and the works to be carried out by statutory bodies
and the government also forms part of the trade preliminaries.
The works including materials provided by the employer, the pricing and the
contingencies. The various categories provides a quick guideline for the tenderers carrying out
the pricing on how to select the various items necessary for the trade preliminaries. It is however
important to note that the items included in the trade preliminaries greatly depends on the type of
the project, size and the existing conditions of the site for the project. The analysis and
understanding of the site condition report is also important before the pricing is done.
The project parties and Consultants
This group of the items for the trade preliminaries always include the name, the
location and the nature of the project. The details of the employer and consultants such as names
and addresses and equally important, the general description of the works of the project are
looked at in this category of trade preliminaries (Alaloul 2016). The items can be listed then the

Preliminaries 3
various costs that are involved in each item estimated by the contractors. For instance costs may
be incurred in the fees that are paid to the consultants which also depends on their rates and
locations.
Description of the Site
This forms another category of items to be included in the trade preliminaries. The
information include the site boundaries including the type of fences, the means of accessing the
site, the existing services in the site such as drainage, power, gas and water services and the
neighbouring or adjacent buildings (Ji, Ahn, Lee & Han 2019). Also, information pertaining the
means of transport while visiting the site need to be looked at under this category. This
information depends on the site condition report and from this, the various activities to be
undertaken and their respective costs deduced or estimated by the contractors interested in
submitting tenders.
The Employer Obligations and Restrictions
The information pertaining the various restrictions that are imposed by the employer
are important during the process of carrying out estimates on items of the trade preliminaries.
Information on the access and use of the site, the restrictions on the working space, the
possibility of use of materials already exiting in the site and the disposal of site materials are
important (M.D. & Mahesh 2019). Information of the need for installation of various services for
the employer such as accommodation and the general temporary services for workers is also
important. Items to be included in the trade preliminaries are obtained with such information and
their respective cost estimates provided by the contactor.
The Nominated Sub-Contractors and Suppliers

Preliminaries 4
The roles of the nominated sub-contractors and suppliers are also put into
consideration while identifying items and the providing their estimates in the preliminaries. The
works carried out by the nominated sub-contractors are always considered as items in addition to
the ones carried out by the main contractor (Perera 2017). For example the need for special
scaffoldings by the sub-contractor including the need for loading and unloading services, storage
and accommodations. The contractor may also be required to pay for certain works and services
that are carried out by the various suppliers such as goods and materials transportation costs
(Marzouk 2014). It is worth noting that such costs can large enough to significantly affect the
project cost therefore should be correctly estimated and provided under the trade preliminaries
by the companies submitting tenders.
Liabilities and Contract Conditions and Government Works
The information of the type and the conditions of the contract also helps in the
identification of various items and estimates to be included in the preliminaries. Various
liabilities and risks both on the contractor and the client are considered and the need for their
minimization identified .This may call for the need for insurance services for the project or even
the workers, plants and equipment. Costs related to protection both in terms of security and
insurance services are considered (Serpella 2014).
Also, the contractors are entitled to adhere to various governmental regulations that
are provided by the various authorities. This means that costs that are likely to be incurred must
be identified and includes in the estimations (Australian Building and Construction Commission
2019). Such items include the authority and government inspection costs.
Construction Contingency

Preliminaries 5
The construction contingency refers to the costs estimated to cater for various
unforeseen changes that may occur in the scope of works of the project (Succeed 2019). There
are always inaccuracies in the cost estimations for various tasks because of assumptions or
overlooking of other costs (Eldosouky 20140. Also, some items may be mistakenly left out
during cost estimation process. Such changes are covered by the contingency or the value
provided as the builder’s margin.
Generally, from the described information, a number of items are identified for the inclusion in
the trade preliminaries during the rate calculations for the construction of the Hume Super Clinic.
The included items are:
1. Description of works; Authorities fees including Development Approval, Construction
Certificate, Inspections (Vic.Gov. 2019).
2. Consultants fees
3. Site clearing
4. Contractors all risk insurance
5. Site fence
6. Direct site labour
7. Rubbish removal
8. Temporary services
9. Scaffolding
10. Contingency - Builders margin

Preliminaries 6
Description of works: Authorities fees
For Victoria State
Development approvals = $3,050.90
Certification of plan = $174.80
Building Inspections = $500
Total = 3,725.7
Site clearing
Site Area = 12.8 x 36 = 460.8 m2
Equipment: - Excavator - $10 /m2 10 x 1 = 10
-2 Trucks - $ 5/m2 2x 5 = 10
3 Drivers – 8hrs per day -30/day – $4/m2 4 x3 = 12
Total Rate = $32 per m2
Contractors all risk insurance
For commercial buildings – 0.5% for 10 stories
2 stories = 2/10 x 0. 5 = 0.1%
Total Rate = 1% = 0.001

Preliminaries 7
Site fence
Wire fence
Total Length = (12.8 + 36) x 2 = 97.6
Equipment – $5 per m = 5
Material – $20 per m= =20
Labour - 5 tradesmen 8hrs - $2 per m – 2 x 5 = 10
Total Rate = 35
Direct site labour
10 Drivers - $ 4/ hr - 8hrs per day - 4 x 8 x 10 = 320
3 foremen = $ 5 /hrs – 8hrs per day – 5 x 8 x 3 = 120
15 Tradesmen – $3.5 /her per day – 3.5 x 8 x 15 = 420
Total Rate = 860
Rubbish removal
Estimated quantity per day = 10,000 per day
Equipment – loaders - $5 per/hr – 8hrs = 5 / (10000/8) = 0.004

Preliminaries 8
- 2 Trucks $5 /hr -8hrs = 5/(10000/8 = 2 x 0.004 = 0.008
3 Drivers - $4 /per hr – 8hrs = 4/(10000/8) = 3 x 0.032) = 0.096
Total Rate = 0.108
Temporary services
Parking areas constructions = 5 m x 15 m = 75m2 - $10/m2
Office Construction = 10m x 10m = 100 m2 - $10/m2
Toilets Construction = 3m x 4m = 12 m2 - $10/m2
Store constructions = 10m x 15 m = 150 m2 -$10/m2
Total Rate = 10
Consultation Fees
Taking consultation fees of based on the standard rate of 0.5%
Rate = 0.05/100 = 0.005
Scaffoldings
Overall height of the building 20 m
Scaffolding area = 2 (20 x 36) + 2(20 x 12.8) = 1952
Hiring - $20/m2 =20
Transportation and Equipment -$5/m2 = 5

Preliminaries 9
Installation labour -8 tradesmen - $2 /m2 = 2x 8 = 16
Total Rate = 16 + 5 + 20 = 41
Contingency - Builders margin
The builders cost margins as not less than 7.5 % of the projected costs.
Taking margins of 7.5 % of the total projected costs
Rate = 7.5/100 = 0.075
Trade Preliminaries Reference : Hume Super Clinic
Item Particulars Unit Quantity Rate Amount
($)
1 Description of works; Authorities fees ;
Development Approval , Construction
Certificate , Inspections
Item 3,725.7
2 Scaffoldings M2 1952 41 80032
3 Consultants fees Item 7M 0.005 350,000
4 Site clearing M2 460.8 32 14745.6
5 Contractors all risk insurance Item 7M 0.001 7000
6 Site fence M2 97.6 35 3416
7 Direct site labour Per 250 860 215000

Preliminaries 10
day
8 Rubbish removal kg 10000 0.108 1080
9 Temporary services M2 187 10 1870
10 Contingency - Builders margin Item 7M 0.075 525,000

Preliminaries 11
References List
Abas, A.A., Ismail, F. and Ismail, Z., 2019. Reliable Description of Preliminaries Item Using
Civil Engineering Preliminaries Protocol (CEPP) In Conventional Contracts. In
MATEC Web of Conferences (Vol. 266, p. 03006). EDP Sciences.
Alaloul, W.S., Liew, M.S. and Zawawi, N.A.W.A., 2016. Identification of coordination
factors affecting building projects performance. Alexandria Engineering Journal,
55(3), pp.2689-2698.
Australian Building and Construction Commission, 2019. Powers of Australian Building and
Construction Inspectors. Available from https://www.abcc.gov.au/resources/fact-
sheets/about-abcc/powers-australian-building-and-construction-inspectors
Eldosouky, I.A., Ibrahim, A.H. and Mohammed, H.E.D., 2014. Management of construction
cost contingency covering upside and downside risks. Alexandria Engineering
Journal, 53(4), pp.863-881.
Ji, S.H., Ahn, J., Lee, H.S. and Han, K., 2019. Cost Estimation Model Using Modified
Parameters for Construction Projects. Advances in Civil Engineering, 2019.
M.D., D., & Mahesh, G., 2019. Developing a knowledge-based safety culture instrument for
construction industry. Engineering, Construction and Architectural Management.
doi:10.1108/ecam-09-2018-0383
Marzouk, M.M., El Kherbawy, A.A. and Khalifa, M., 2014. Factors influencing sub-
contractors selection in construction projects. Hbrc Journal, 9(2), pp.150-158.
Perera, Kanchana & Rodrigo, M.N.N., 2017. Management of Nominated Subcontractors in
the Construction of Commercial Buildings in Sri Lanka. Bhumi, The Planning
Research Journal. 5. 10.4038/bhumi.v5i2.29.

Preliminaries 12
Serpella, A.F., Ferrada, X., Howard, R. and Rubio, L., 2014. Risk management in
construction projects: a knowledge-based approach. Procedia-Social and Behavioral
Sciences, 119, pp.653-662.
Succeed, 2019. Construction Contingency - What is it and Who Owns it in a Contract?.
Available from https://succeedwithcontractors.com/construction-contingency-costs/
Untrusty-Group. 2016. What are Preliminaries and how to Estimate them? Available from
http://entrusty.com/site/wp-content/uploads/2012/08/What-are-Preliminaries-and-
how-to-evaluate-them.pdf
Vic.Gov.2019. Planning and subdivision fees. 2019. Available from
https://www.planning.vic.gov.au/legislation-regulations-and-fees/planning-and-
subdivision-fees