Knowledge · Estimating

Preliminaries,
the cost of running the job.

Every residential job carries costs that never become part of the house. Supervision, site establishment, scaffold hire, amenities, insurances and cleaning are consumed by time on site, which is why a delayed job loses money here first, and quietly.

01 / Overview

What preliminaries are

Preliminaries are the costs of delivering a job that do not become part of the finished building. The bricks, frames and fittings are permanent work; the supervisor, the site shed, the temporary power, the scaffold, the toilets, the skips, the safety signage, the job-tied insurance and the final clean are preliminaries. They are real, unavoidable costs of running the site, and on a residential build they are commonly one of the largest cost groups outside the trade packages themselves.

Within the wider discipline covered in the estimating reference, preliminaries sit in their own section of the estimate, priced separately from the measured work. That separation is deliberate and is standard practice in Australian quantity surveying. Trade rates describe what it costs to build an element; preliminaries describe what it costs to be on that site, running that job, for as long as the job takes.

Why they matter

Preliminaries matter because most of them are bought with time. A trade package is spent once, when the work is done. Supervision, amenities hire, scaffold hire and job-tied insurance are spent again every week the job remains open, whether or not any work happened that week. That makes preliminaries the part of the price most exposed to the schedule, and the part of a delayed job where money leaks without anyone raising a variation or receiving an invoice that looks unusual. A builder who understands preliminaries understands why two jobs with identical trade costs can finish with very different margins.

02 / The workflow

Where preliminaries sit in the estimate

In the estimating workflow (see the construction estimating guide), preliminaries are priced after the measured work and the trade packages, and before margin. They are kept out of assemblies and recipes on purpose. An assembly prices a square metre of wall the same way on every job, but no two jobs run the same way, so the cost of running the job must be priced per job, against that job's site and that job's programme. The single most important input is duration, which is why preliminaries are the point where estimating and scheduling stop being separate disciplines. An estimator pricing preliminaries without a realistic programme is pricing a number without its main variable.

03 / Process workflow

Building the preliminaries section of an estimate

Eight steps, from reading the programme to re-pricing when it moves. The split between time-related and fixed items in the middle is the step that makes delay costs visible later.

  1. 01

    Read the programme first

    Preliminaries are priced off duration, so the construction programme is the first input, not an afterthought. Before pricing a single item, establish how many weeks the job will genuinely run on site.

  2. 02

    Walk the site on paper

    Work out what this specific site needs to be run. Access, storage, where the shed and amenities go, whether scaffold wraps the whole build or one elevation, whether cranage is needed at all.

  3. 03

    Separate time-related from fixed

    Split every item into costs that run per week on site (supervision, hire, temporary services) and costs that occur once or per event (establishment, crane lifts, final clean). The split is what makes delay costs visible.

  4. 04

    Price time-related items against the programme

    Weekly rate multiplied by programmed weeks, item by item. If the programme says twenty weeks, the supervision, amenities hire and scaffold hire lines all say twenty weeks, not a round allowance.

  5. 05

    Price fixed items per occurrence

    Site establishment, temporary fencing installation, crane mobilisation, skip exchanges, the final clean. Each is a count and a rate, not a percentage of anything.

  6. 06

    Price supervision honestly

    Decide how much supervisor time this job actually consumes, including the share of a supervisor split across jobs. Supervision hidden in overheads is the most common way preliminaries get understated.

  7. 07

    Check compliance and insurance items

    Job-specific insurances, safety plans, signage, first-aid and amenities obligations belong to the job, not the business. Confirm current requirements for your state before relying on last year’s list.

  8. 08

    Re-price whenever the schedule moves

    A programme change is a preliminaries change. Every re-sequence or extension should trigger a re-check of the time-related lines, during the estimate and again during delivery.

04 / Key mechanics

What sits inside preliminaries

The common categories on an Australian residential job. The exact list varies with job type, duration and site, which is precisely why the section is itemised per job rather than borrowed from the last one.

Supervision

The site supervisor or working foreman time the job consumes, whether dedicated or shared across jobs. Usually the largest single preliminary on a residential build, and almost entirely time-related.

Site establishment and amenities

Site shed, toilets, lunch facilities, temporary fencing, signage and storage. Establishment and removal are fixed costs; the hire in between runs by the week.

Temporary services

Builder’s power, water and sometimes data for the duration of the build. Connection is fixed, consumption and hire are time-related.

Scaffolding, access and cranage

Scaffold supply and erection are fixed; the hire period is time-related and keeps running through every delay. Cranage is usually priced per lift or per day against specific programme events.

Waste, cleaning and protection

Skips and waste removal through the build, progressive cleans, protection of finished work, and the final builder’s clean. A mix of per-event and per-week costs.

Safety, compliance and job insurances

Site safety plans and equipment, compliance items, and insurances tied to the specific job for its duration, such as contract works cover. Longer duration generally means more cost here, not the same cost.

Time-related versus fixed preliminaries

Every preliminary item is one of two kinds. Fixed preliminaries occur once or per event regardless of duration, such as site establishment, scaffold erection and dismantle, crane mobilisation and the final clean. Time-related preliminaries run for as long as the site is open, such as supervision, shed and amenities hire, scaffold hire, temporary services and job-tied insurance. The distinction is the whole point of itemising. When a programme extends, the fixed items do not move but every time-related line grows in direct proportion, and only an estimate that priced them separately can say by how much.

Preliminaries, overheads and margin are three different numbers

Preliminaries are job costs, incurred because this job exists. Overheads are business costs, incurred whether or not this job exists, and they are recovered across all jobs through margin and markuprather than priced into any one job's preliminaries. Margin itself is the business's earnings after both are covered, and contingency is a fourth number again, priced against identified risk. Builders who blend these into one padded figure lose the ability to tell which of them a difficult job consumed, and therefore which number to fix on the next one.

05 / Best practice

How experienced builders price the running of the job

Preliminaries are where a delayed job quietly loses money. Every extra week on site is another week of supervision, amenities, scaffold hire and insurance with no matching revenue, and none of it announces itself. There is no variation to argue about and no supplier invoice that looks wrong, just a job that stayed open longer than the estimate paid for. Operators who have delivered enough jobs treat this as the defining property of preliminaries, and it drives two habits. They price preliminaries off the programme, not off a habit percentage, and they re-check the time-related lines every time the schedule moves, whether that movement happens during tendering or halfway through the build.

The same operators are sceptical of any preliminaries section that looks like last job's section. Preliminaries vary with job type, duration and site. A knockdown rebuild on a battleaxe block, a double-storey build needing full scaffold, and a single-storey home on an open estate lot carry genuinely different running costs, and a benchmark figure that fits all three fits none of them. Where a builder wants a benchmark, the honest answer is that there is not a reliable one, and that the discipline is itemising the section per job and then letting close-out actuals, tracked through cost control, sharpen the rates for the next estimate.

Where software fits the workflow

Traditionally the programme lives in one tool and the estimate in another, so a schedule change never reaches the preliminaries that depend on it. In VIABUILD the construction schedule and the job budget run on the same understanding of the job, so when the programme extends, the builder can see the time-related preliminaries exposure move with it instead of discovering it at close-out. The practices behind a realistic programme are covered in the residential construction scheduling guide.

06 / Australian considerations

Preliminaries in Australian practice

Preliminaries themselves are a costing convention rather than a legislated item, but several of the costs inside them are shaped by obligations that differ by state and change over time. The points below are labelled by evidence class; confirm current requirements with the relevant body before relying on any of them.

  • Industry best practice. Australian quantity surveying practice measures preliminaries as their own section of the estimate or bill, separate from the trade work, so the cost of running the job is visible and comparable between jobs. AIQS publications describe the recognised approach to measurement.
  • Common practice. Many small residential builders carry preliminaries as a single percentage allowance. It is common, and it is the weakest common habit in residential pricing, because preliminaries are driven by duration and site rather than by contract value. The itemised, programme-driven section is the stronger practice this page describes.
  • Common practice. Site amenities, facilities and safety provisions on a residential site are shaped by work health and safety obligations administered by each state and territory regulator, and the specifics vary by jurisdiction and job. Confirm your current obligations with your state WHS regulator rather than pricing from a previous job's list.
  • Common practice. Job-tied insurances such as contract works cover are typically arranged for the expected construction period. A significantly extended programme can affect the cover and its cost, so a schedule blowout is an insurance conversation as well as a cost problem. Confirm the position with your insurer or broker for the specific policy.

07 / Common mistakes

Where preliminaries pricing goes wrong

Each of these is mechanical and recognisable. None of them requires a benchmark figure to fix, only a programme and an itemised list.

The habit percentage

A percentage of build cost carried from job to job because it worked once. A high-value job on an easy site gets overpriced, a modest job on a tight site with a long programme gets underpriced, and nobody can say which items the allowance covered.

Duration priced by optimism

Time-related preliminaries priced against the duration the builder hopes for rather than the programme the job supports. Every week of the gap between the two is preliminaries spend with no allowance behind it.

Fixed and time-related lumped together

One preliminaries lump sum hides the split that matters. When the job runs over, nobody can see which lines are still bleeding by the week and which were spent once and finished.

Supervision absorbed into overheads

Treating the supervisor as a business cost makes every job look more profitable than it is and makes long jobs indistinguishable from short ones. Supervision belongs to the job that consumes it.

Preliminaries never revisited

The estimate said eighteen weeks, the re-sequenced programme says twenty-three, and the preliminaries still say eighteen. Schedule changes that never flow back into the preliminaries are a quiet, compounding loss.

No feedback from actual spend

If preliminaries actuals are never compared against the allowance at close-out, the next estimate inherits the same wrong numbers. The feedback loop that corrects trade rates should correct preliminaries too.

08 / Practical example

A worked delay, in preliminaries terms

Illustrative only, not a benchmark. A builder prices a twenty-week build with time-related preliminaries of $2,800 per week (a share of a supervisor, shed and amenities hire, scaffold hire, temporary services and job-tied insurance), a total allowance of $56,000 alongside the fixed items. The job hits wet weather and a slow frame stage and finishes in twenty-five weeks. No trade package went over, no variation was missed, yet the job spent roughly $14,000 of preliminaries the estimate never priced, and the contract sum did not move. Five extra weeks quietly consumed a large slice of the margin. The itemised, programme-priced section did not prevent the delay, but it made the exposure visible week by week, which is what let the builder chase the schedule while the money was still recoverable rather than discovering the loss at close-out.

09 / FAQ

Common questions.

Preliminaries are costs of delivering one specific job, and they exist only because that job exists. The supervisor on that site, the shed on that site, the scaffold around that house. Overheads are the costs of running the building business regardless of any single job, such as the office, accounting, vehicles not tied to a site, and marketing. The practical test is simple. If the job disappeared tomorrow, a preliminary cost disappears with it and an overhead does not. Blurring the two makes jobs look profitable while the business quietly is not, or the reverse.

A percentage is a starting sanity check at feasibility stage, not a pricing method. Preliminaries are driven by duration, site conditions and job type rather than by contract value, so two jobs of identical value can carry very different preliminaries. A long renovation on a tight urban block needs more supervision, access and protection than a straightforward new build worth the same money. The discipline experienced builders apply is itemising preliminaries per job against the programme, then comparing the resulting total to past jobs as a cross-check.

The time-related lines keep running. Supervision, amenities hire, scaffold hire, temporary services and job-tied insurance all continue by the week, while the contract sum usually does not move unless the delay entitles the builder to more. This is why a delayed job can be losing money even when every trade package is on budget. The fixed preliminaries were spent as planned; the weekly ones are being consumed with no matching revenue.

Sometimes, and it depends entirely on the contract and the cause of the delay. Where a delay is caused by the client or by events the contract compensates, an extension of time with associated delay costs may apply, and the daily or weekly rate is often argued from the preliminaries. Where the delay is the builder’s own, the extended preliminaries are simply absorbed. This is general education rather than contract advice, and the entitlement rules differ between contracts and states, so confirm the position under your contract before relying on recovery.

In common practice on residential jobs they are spread across the claim stages rather than claimed as a visible line, because stage payments are usually defined as percentages of the contract sum. The risk in that structure is that preliminaries are consumed by time while claims are earned by work. A job that stalls keeps spending preliminaries without earning a claim, which is exactly the mechanism by which delay turns into cash-flow strain as well as margin loss.

Not always. Some builders carry scaffold inside the relevant trade rates, and cranage sometimes sits inside a supplier’s delivery price, such as frame or truss placement. Either treatment can work. The discipline is deciding once, in your cost structure, where each of these costs lives, so that it is priced exactly once, neither doubled up between a trade rate and the preliminaries nor missed by both.

10 / Terms

Glossary for this topic

Preliminaries (the costs of running a job that are not permanent work), time-related preliminaries (costs that run per week on site), fixed preliminaries (costs incurred once or per event), site establishment (setting up the site to be worked), overheads (business running costs recovered across all jobs), contract works insurance (cover tied to a specific job for its construction period), P&Gs (preliminaries and generals, the same section under its commercial-sector name). Definitions for the wider vocabulary live in the construction glossary. With the cost of running the job priced, the next question is what the business earns on top of it, which is where margin and markup picks up.

12 / Further reading

Primary sources

  • Australian Institute of Quantity Surveyors , publisher (with Master Builders Australia) of the recognised standard method of measurement, which treats preliminaries as a distinct section of measured work.
  • Your state or territory work health and safety regulator, for the current amenities, facilities and safety obligations that shape several preliminaries items on a residential site.
  • Your state or territory building regulator and fair trading body, for the domestic building contract rules that govern how delay and cost adjustments operate in your jurisdiction.

Price the job off the programme, and see it move when the programme does.

VIABUILD runs the schedule, the budget and cost tracking on one understanding of the job, so a schedule change shows up in the numbers it affects instead of surfacing at close-out.