contract prelim

HKIS (QSD) CPDTopic: Contractors Pricing for Preliminaries

Speaker: Mr. Paul K. L. Wong (Director of Chinney Construction Co. Ltd.)

Date: 20th January 2011

Time: 7:00pm 8:30pm

Venue: Surveyors Learning Centre

Contractors Pricing for Preliminaries - Overview

1.There is no hard and fast rules to price preliminaries.

2.The purpose of this seminar is to cover the basic principles of building up cost and eventually pricing for preliminaries.

3.The speaker will share his experience in pricing preliminaries for submitting tenders of building projects.

4.A Sample Case will be discussed for compiling the preliminaries cost (not exhaustive) of a sample building project.

Method of Pricing Preliminaries

1.To allow % mark-up (based on similar previous projects) on the estimated cost of the project.

2.Build up the cost of preliminaries items (with significant cost implication not covered in BQ/SOR) in detail.

Factors to be Considered When Pricing Preliminaries

Standard preliminaries items (See Sample Case)Contract requirementsStatutory requirementsPayment method for preliminaries itemsMaximum % of preliminaries stated in the tender documentsType of Contract (Lump sum with or w/o quantities)Contract period (and actual construction period)Amount of LD (and EOT clause)Reputation of the Employer and ConsultantsMode of Sub-contractingLocation of the SiteGround conditionMarket conditionContractors resources, financial capability and workloadContractors pricing strategy

Prices to be Included in Preliminaries or BQ/SOR

Prices for some items that may be included or absorbed in BQ/SOR.

Examples: -

1. Items Included in BQ/SOR Hoarding ELS works Some testing items (e.g. water test for waterproofing and windows & performance test for curtain walls, etc.) Safety management Attendance on NSC works

2.Contractors Pricing Practice Mobile crane (included in the rates of structural steel works) Scaffolding (included in the rates of ceiling works) Wet cleaning (included in the rates of tiling works)

Payment Method for Preliminaries Items

Initial cost (e.g. premium for insurances, set up cost for site offices, tower crane, scaffolding, electricity and water, etc.)Work related cost (e.g. setting out & levies, etc.)Time related cost (e.g. watchmen & site management staff, etc.)Removal cost (e.g. removal cost for site offices, tower crane, scaffolding, electricity and water, etc.)Stipulated payment terms for preliminaries itemsExamples :- Payment for the excess amount priced in those preliminaries items (e.g. insurances) will be effected over the period of the Contract. Payment for time and work related items will be effected as per the proportion of the total value of the Main Contract Work. No payment will be included in interim payment for those preliminaries items with no amounts being inserted.

Preliminaries Items Bond Site Management Setting out Insurances Levies Site Cleaning Plant Safety Management Environmental Management Watchmen Site Accommodation for Contractor Site Offices for Employers Representatives Transportation* Entertainment and Other Expenses Hoarding Scaffolding Water Electricity Testing and Sample Other Items

* No such relevant preliminaries items in BQ/SOR

Preliminaries ItemsBond1. Performance bond or demand bond2. Bond for Defects Liability Period (for the release of the Bond during the Contract period)3.Required in the Contract? (Yes / No)4. 1% / 5% /10% / x% / fixed amount of Contract Sum5. Up to the issuance of Certificate of Practical Completion / Substantial Completion or Making Good Defects6. Premium7. Collateral8. Tender Bond

Preliminaries ItemsSite Management1. Full time site management staff required in the Contract (e.g. ProjectManager, Construction Manager, Site Agent, Project Co-ordinator, Labour Officer, Graduate Engineer & Apprentice, etc.)2. Other site management and clerical staff3. Direct site labour4. Site management staff during defects liability period5. Quantity surveying staff during contract period and final account period

Preliminaries ItemsSetting out1. To be subletted or done by Contractors in-house staff? 2. Land surveying (Initial setting out)3. Setting out works (Levellers)4. Surveying tools and equipment

Preliminaries Items4.Insurances1. Contractor All Risk (CAR) Insurance and Employee Compensation (EC) Insurance2. To be effected by the Employer or the Contractor?3. EC Insurance for NSC Works (to be effected by MC or NSC?)4. Premium5. Excess6. CAR & EC Insurances during extended Contract period (Reimbursable?)7. EC Insurance after Defects Liability Period8. Professional Indemnity Insurance

Preliminaries ItemsLevies1. Construction Industry Levy (0.43% (including 0.03% of Construction Workers Registration Authority Levy) of Contract sum)2. Pneumoconiosis and Mesothelioma Levy (0.25% of Contract sum)3. HKCA levy (*0.03% (Contract sum $120M$1,000M) or *0.06%(Contract sum $1,000M) of Contract sum of relevant Employer HKSAR, HKHA, HKHS, AA, MTRC, Ocean Park and Science Park)

* The indicated rates of levy are for building works contract.

Preliminaries Items6. Site Cleaning1. General site cleaning during progress of the Works2. Wet cleaning3. Final cleaning upon completion of the Works4. Temporary refuse chute5. Dumpling trucks6. Trip ticket system

Preliminaries Items7. Plant1. Tower cranes (setting up, running and removal cost)2. Material hoists (setting up, running and removal cost)3. Passenger hoists (setting up, running and removal cost)4. Concrete pump trucks5. Trucks6. Mobile cranes7. Gondolas8. Fuel9. Small tools10. Maintenance

Preliminaries Items8. Safety Management1. Safety audit at 6 months interval (* where the total no. of persons employed on Site 100 or Contract sum $100M) or safety review at 6 months interval (* where the total no. of persons employed on Site = 50-59) 2. Safety Officer (*1 No. full Safety Officer where the total no. of persons employed on Site 100)3. Safety Supervisor (*1 No. full Safety Supervisor where the total no. of persons employed on Site 20)4. General labour for safety duty5. Safety tools (e.g. safety gloves & safety labels, etc.)6. Safety materials (e.g. temporary barriers & temporary lift shaft doors etc.)7. Safety precaution (e.g. fire extinguishers & fire pumps (* 1 fire pump / 30m high) with pipes for high rise buildings, etc.)

* Statutory requirements

Preliminaries Items9. Environmental Management1. Environmental Officer2. Environmental Supervisor3. Dust control4. Noise control5. Temporary site drainage system6. Vehicle washing bay7. Wastewater treatment system

Preliminaries Items10.Watchmen1. Watchmen2. Guard house3. Handkey access control system4. CCTV system

Preliminaries Items11.Site Accommodation for Contractor12.Site Offices for Employers Representatives1. Site offices and facilities for Employers representatives (minimum requirements in the Contract)2. Site offices and facilities for Contractor (& Sub-contractors)3. Site storage area4. Office furniture and equipment5. Temporary latrines6. Re-location of site offices and site storage area7. Off site bending yard and storage area

Preliminaries Items13.Transportation1. Contract car or Contractors car2. Shuttle bus (for remote site)3. Car insurance and licence fee4. Driver5. Mobile phone (for driver)6. Fuel7. Maintenance cost of car

Preliminaries Items14. Entertainment and Other Expenses 1. Work commencement ceremony, topping out ceremony & Lo Pan, etc. 2. Petty cash (for staff messing) 3. Progress photos 4. Combined services drawings & as-built drawings, etc. 5. Others

Preliminaries ItemsHoarding1. New hoarding or take over existing hoarding2. Covered walkway, hoarding, gantry, signboard and lighting, etc.3. Maintenance4. Alter hoarding to suit site operation5. Alter gantry to suit site entrance6. Temporary hoarding for fencing off site works (mainly for A&A works)7. Removal of hoarding8. Reinstate existing paving

Preliminaries ItemsScaffolding1. External and internal scaffolding2. Safety nylon mesh3. Timber or steel board for working platform 4. Safety catch fence5. Safety canopy at hoists and passenger lifts6. Scaffolding in lift shafts7. Ceiling scaffolding8. Temporary working platform9. Special temporary propping (e.g. for transfer plate)

Preliminaries Items17. Water1. Temporary water meter 2. Temporary pipe works, water tank & pump, etc.3. Maintenance4. Water fee5. Removal cost for temporary water supply

Preliminaries Items18.Electricity1. Generator2. Fuel3. Temporary transformer room (400A)4. Temporary main switch board5. Temporary lighting6. Electricians7. Maintenance8. Electricity fee9. Removal cost for temporary electricity supply

Preliminaries ItemsTesting and Sample1. Testing fee (e.g. concrete & reinforcement, etc.)2. Testing equipment (e.g. concrete cube mould, slump cone &curing tank, etc.)3. Samples submission

Preliminaries ItemsOther ItemsSome other items that may be required in the Contract or to suit the site conditions.Examples :-1. Condition survey2. Temporary steel working platform3. Show flats4. Diversion of existing services5. Temporary works for obtaining Occupation Permit

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1.BondGrand Total :$225,625.00

Average per month :HK$14,101.56/mth

Rate

Amount of Bond =HK$4,750,000.00for construction period (16 months)

Allow1.5%of Bond or Cash Security (per annum) (1.5 years)$106,875$106,875.00

Interest :5.0%of Collateral (1/3 of bond amount)$118,750$118,750.00

Amount of Bond =0.0%of Contract Sum - for Defects liability period

Allow0.0%of Bond or Cash Security0.00.0

Handling Fee :N/A

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2.Contractor's SuperintendentsGrand Total :$6,504,000.00


Rate

a.Construction Period

-Project Manager/A PM$55,00016 mths1PM$880,000.00

-Site Agent$28,00016 mths1SA$448,000.00

-General Foreman$22,00016 mths1GF$352,000.00

-Foreman$19,00016 mths3F$912,000.00

-A. Foreman$15,00016 mths3AF$720,000.00

-Building Services Co-ordinator (BSCo)/ABSCo$43,00016 mths1Bs Co$688,000.00

-Senior Q.S.( Including for final account )$35,00016 mths00.0

-Q.S.( Including for final account )$26,00016 mths1QS$416,000.00

-A.Q.S.( Including for final account )$15,00016 mths1A.Q.S.$240,000.00

-Project Co-ordinator$22,00016 mths1PC$352,000.00

-Site Engineer$22,0008 mths1SE$176,000.00

-Graduate Engineer$14,00016 mths00.0

-Ex-CITA$3,50016 mths00.0

-Site Clerk$8,50016 mths1Clerk$136,000.00

-Store Keeper$8,00016 mths00.0

-Amah$7,50016 mths0Amah0.0

-Labour$12,50016 mths2$400,000.00

b.Maintenance Period

-Site Agent$28,00012 mths1$336,000.00

-Foreman$19,00012 mths1$228,000.00

Allowance for MPF, Double Payets.$220,000.00

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3.Setting OutGrand Total :$3,110,000.00


Rate

a.Podium, External Works & Car Park

-Inital Setting Out$50,000.00

-Senior Surveyor$20,00010 mths41. Blk(s)$800,000.00

-Leveller$16,00010 mths41. Blk(s)$640,000.00

-Survey EquipmentIncluded

b.Super-structure( Tower Blocks )

-Initial Setting Out0.0




Allowance for MPF, Double Payets.0%N / A

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4.InsurancesGrand Total :$7,125,000.00


Rate

A.Accident or Injury to Workers

a.Employee Compensation

Allow1.20%of Engineer's Budget (HK$475,000,000.00)$5,700,000.00

b.Levies for Employee Compensation

Allow11.30%of Employee Compensation

Sub-Total :$5,700,000.00

B.Damage to Person and PropertyRate

a.Contractors All Risk Insurance

Allow0.30%of Engineer's Budget (HK$475,000,000.00)$1,425,000.00

b.Plant Value

Allow1.0%of Plant ValueN / A

> Tower Crane

> Material Hoist

> Passenger Hoist

> General Plant1

c.Execss0.0

C.Professional Indemnity CoverRate

a.Allowof Amount stated in Tender Documents

Sub-Total :$1,425,000.00

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5.LeviesGrand Total :$3,372,500.00


Rate

a.Allow0.65%(0.25%+0.40%) of Engineer's Budget for Pneumoconiosis and

Mesothelioma levy & Construction Industry Levy

(CWRA levy included in C below)

Engineer's Budget$475,000,000.00

> Lift

> Electrical

> ACMV

> Fire Service

Sub-Total$475,000,000

Allow0.65%of Engineer's Budget$3,087,500.00

b.Allow0.03%of Engineer's Budget for HKCA$142,500.00

c.Allow0.03%of Engineer's Budget for Construction Workers Registration Authority$142,500.00

Sub-Total :$3,372,500.00

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6.Site CleaningGCC 35 & 38Grand Total :$4,662,940.00


Rate

a.Site Cleanliness

-Progress Cleaning

> Tower Blocks$15,00016 mths15.01.0$3,600,000.00

> Podium & External Works + Car Park Block$15,00016 mths0.00.0

-Hack Off of Floor Screeding0.0

-Cleaning of Tiles0.0

-Cleaning of Sanitary Fittings0.0

-Temp. Refuse Chute$99546 m2$91,540.00

b.Clearance of Site on Completion

-Tower Blocks$15,0001 mths15.01.0$225,000.00

-> Podium, External Works & Car Park$15,0001 mths0.00.0

c.General Labour (Defect Libilities Period)

-Tower Blocks$15,00012 mths0.01.00.0

d.Remove rubbish off site to dumping area (incl waste disposal fee)$1,55524 floor20.0 trucks746,400.0

ditto for podium0.00.0

e.Allow0.50%of Contract Sum for Waste dumpingincl. In above

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7.PlantGrand Total :$4,352,400.00


Rate

A.General Plant

a.Concrete pump trucks (for Tower)$7,0001 days00.0

b.Lorry for transport in % bending Yard$10,0008 mths00.0

c.Mobile Crane - 50T$56,2002 mths1$112,400.00

d.Mobile Crane - 80T$120,0001 mths1$120,000.00

e.mobile crane for off site yard 27 ton$30,0004 mths00.0

f.Fuel, Oil and gas for ditto$2,5004 mths00.0

g.Small Tools$4,00016 mths1$64,000.00

h.Maintenance$2,00016 mths1$32,000.00

i.Mechanical Hardware0.016 mths10.0

Sub-Total :$328,400.00

B.Automatic Material HoistRate

a.1no(s). for each Tower Block10storeys &11 mthsX 2 Tower

- Set up and Dismantle (Rental)

> Initial set up & Erection$29,00012.0$58,000.00

> Purchase new material hoist$70,00002.00.0

> Test & Commissioning2.0Included

> Cable2.0Included

> Dismantle & Transportation$34,0002.0$68,000.00

> Enclosed by tarpaulin$14,00012.0$28,000.00

- Running Cost

> Miscellenous and Maintenance$15,00011 mths12.0$330,000.00

> Rental (Mast = 41m)$30,00002.00.0

> Climbing( at each 3 flrs = 2 times / Blk )$5,00002.00.0

> Test for Ditto$11,0004.0Included

steel passageway$1,20010 floor12.0$24,000.00

FootingSum$100,000.00

Sub-Total :$608,000.00

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> Cable2.0Included



- Running Cost


> Rental (Mast = 41m)$30,00002.00.0





Sub-Total :$608,000.00

b.Passanger HoistRate

a.0no(s). for each Tower Block10storeys &0 mthsX 1 Towers

- Erection and Dismantle$400,00010.00.0

- Rental$50,00012 mths10.00.0

- Hoist Operator$8,00012 mths10.00.0


Sub-Total :0.0

a.1no(s). for each Tower Block10storeys &10 mths


> Initial set up( Including Mobilization )$210,00012. Blk(s)$420,000.00

> Foundation Support$170,00012. Blk(s)$340,000.00

> Test$11,000Included

> Dismantle( Including Delivery off Site )$280,00012. Blk(s)$560,000.00

> I-beam support frame$115,00012. Blk(s)$230,000.00

- Running Cost

> Rent$55,00010 mths12. Blk(s)$1,100,000.00

> Tower Crane Operator$22,00010 mths12. Blk(s)$440,000.00

> Miscellenous and Maintenance$5,00010 mths02. Blk(s)0.0

> Climbing ( 1st times )$128,0001.0 times2. Blk(s)$256,000.00

> Climbing ( 2nd to end = 6 times / Blk )$35,0001.0 times2. Blk(s)$70,000.00

> Test for Ditto0Included

Sub-Total :$3,416,000.00

E.GondolaRate

- Rental$1,8000 mths01. Blk(s)0.0

- Testing Certificate$90001. Blk(s)0.0

- Install/Dismantle$90001. Blk(s)0.0

Sub-Total :0.0

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D.Tower CraneRate








- Running Cost

> Rent$55,00010 mths12. Blk(s)$1,100,000.00



> Climbing ( 1st time)$128,0001.0 times2. Blk(s)$256,000.00



Sub-Total :$3,416,000.00

E.GondolaRate




Sub-Total :0.0

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8.Safety ManagementPRE 8.210Grand Total :$2,260,200.00


Rate

a.Safety Audit / Safety Review( 2 times / year )$7,0003.0 times$21,000.00

b.Safety Officer (2nos. required in the Contract)$28,00016 mths2$896,000.00

c.Assistant Safety Officer$18,00016 mths1$288,000.00

d.General Labour

-Tower Blocks$15,00016 mths21. Blk(s)$480,000.00

e.Tools$1,50016 mths1$24,000.00

f.Safety materials for balcony and lift shaft 1000/lift shaft, etc.$1,00024 floor41. Blk(s)$96,000.00

f.Safety Precautions

-Extinguisher

> Tower Block$5501024.0 sty$132,000.00

-Fire Pump with Pipe

> Tower Block$15,0001.0 tower00.0

Str opgs & Main roof W/P$5,000224$240,000.00

Allowance for MPF, Double Payets.ForSafety OfficerAssistant Safety Officer5%$83,200.00

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9.Environmental ManagementGrand Total :$220,000.00


Rate

a.Dust Control$50,000.00

b.Noise Control$50,000.00

c.Site Drainage System

-Dewatering$50,000.00

-Temporary Channels & Drainage0.0

d.Vehicle Washing Bay$70,0001$70,000.00

e.Wastewater Treatment System$200,00000.0

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10.WatchmenGrand Total :$665,500.00


Rate

a.Watchman (day and night)$23,00019 mths1.5$655,500.00

b.Guard House (Deliver from Godown)0.010.0

c.Handkey Access Control System$10,000.00

d.CCTV SystemN/A

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11.Site Accommodation for ContractorGrand Total :$702,400.00


Rate

a.Initial Set Up

-Set up Site Office$1,200180.0 m2$216,000.00

-Container Office (initial)$1,2003 mths3. nos$10,800.00

-Delivery & collection charge$1,2002 trip3. nos$7,200.00

-Container Office (Toilet)$1,20016 mths1. nos$19,200.00


-Toilet accommodation (10+7WC, 12+7U, 9+7basin.)$62,400.00

-Relocate site office$50,000.00

-Other Equipment & Facilities

> Air Conditioner$4,00010$40,000.00

> Office Furniture and stationery$5,00016 mths$80,000.00

> Computer System (Clerk-1, QS-1, SA-1, BS-1, PC-1)$5,0006$30,000.00

> Photo Copy Machine$8,0001$8,000.00

> Fax. Machine$3,0001$3,000.00

> Tel. Handset$6008$4,800.00

-off site yard incl. elect. & water$10,0000 mths0.0

b.Running Cost

-Telephone Line & Fax line$20016 mths6$19,200.00

-Mobile Phone Monthly Charge$2000 mths00.0

-Pager to Site Staff

> Site Agent$1200 mths00.0

> General Foreman$1200 mths00.0

-Radio Communication System

> Site Agent$50016 mths1$8,000.00

> General Foreman$50016 mths1$8,000.00

> Foreman$50016 mths2$16,000.00

> Assistant Foreman$50016 mths1$8,000.00

> Project Co-ordinator$50016 mths1$8,000.00

> Watchman$50016 mths1$8,000.00

> Tower Crane( Tower Block )$50010 mths11. Blk(s)$5,000.00

c.Dismantle and Reinstatement (allow lump sum)$50,000.00

d.Portable Toilet$1,20016 mths2$38,400.00

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11.Site Accommodation for ContractorGrand Total :$702,400.00


Rate

b.Running Cost







> Site Agent$50016 mths1$8,000.00


> Foreman$50016 mths2$16,000.00



> Watchman$50016 mths1$8,000.00




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12.Site Offices for Employer's RepresentativesGrand Total :$535,940.00


Rate

a.Initial Set Up

-Set Up Site Office$1,200140.0 m$168,000.00





-Toilet accommodation (3+1WC, 2U, 3+1basin.)0.0


b.Dismantle and Reinstatement existing pavement(allow lump sum)0.0

c.Furniture & Equipment

-Air Conditioners$4,00012$48,000.00

-Office Furniture and Stationary$1,000120.0 m$120,000.00

-Photo Copy Machine$6,5001$6,500.00

-Fax. Machine$3,0001$3,000.00

-Computer System$13,0003$39,000.00

-Radio Pager$50000.0

-Mobile Phone$3,0003$9,000.00

-Camera$1,5006$9,000.00

-Tel. Handset$6002$1,200.00

d.Running Cost

-Telephone Line & Fax Line & Modem$20016 mths2$6,400.00

-Radio Pager$12016 mths2$3,840.00

-Mobile Phone Monthly Charge$50016 mths3$24,000.00

-Camera$30016 mths6$28,800.00

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13.TransportationGrand Total :0.0

Average per month :0.0

Rate

a.Employer's Representatives' Transportation

-shuttle bus

-Contract Car$140,00000.0

-Insurance and Liense Fee$20,000200.0

-Mobile Phone$3,50000.0

b.Running Cost

-Driver$10,00014 mths00.0

-Fuel Consumption$8,50014 mths00.0

-Tunnel Fee$80014 mths00.0

-Mobile Phone Monthly Service$20014 mths00.0

-Maintenance Fee$1,00014 mths00.0

Allowance for MPF, Double Payets.13%0.0

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14.Entertainment & Other ExpensesGrand Total :$384,000.00


Rate

a.Commencement x 1 ; Lunar New Year x 1 ; Lo Pan x 2 ; Finish x 1$10,0003.0 times$30,000.00

b.Petty Cash$6,00016 mths$96,000.00

c.Progress Photo$50016 mths$8,000.00

d.Combined Services Dwg.$150,000.00

e.As Built Drawing$100,000.00

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15.HoardingGrand Total :$65,000.00


Rate

>Catchfan( Type 2 )$3,8500.0 m0.0

>Catchfan( Type 1 )$4,7500.0 m0.0

>Hoarding maintenance and removal$8500.0 m0.0

>Additional 1 no. of Site Gantry$25,0001$25,000.00

>Notice Board and Advertising

-New Erect$20,0001$20,000.00

banner$20,0001$20,000.00

Typ4 covered walkway under footbridge construction$10,0000.0 m0.0

>Site Entrance Gate$250,0000.0 blk0.0

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16.ScaffoldingGrand Total :$6,608,843.00


Rate

a.1no(s). Tower Blocks0.0

-Superstructure External - Double layer without safety net$34160,000 m1.0$5,440,000.00

-Nylon Mesh (Double Layer)$159,000 m1.0$135,000.00

-Safety Catch Fence$1651,800 m1.0$297,000.00

-Safety Canopy at Hoist & Passenger Lift(6m x 6m)$5,00011.0$5,000.00

-Bamboo Scaffolding in lift shaft$421,050 m1$44,100.00

-Ceiling$120888 m1$106,560.00

-Timber board for working platform$95800 m1$76,000.00

-Superstructure External - single layer without safety net$260 m1.00.0

-Temporary working platform$200,000.00

b.Extra propping for transfer plate$230,0000.00.0

c.Temporary gutter around perimeter of tower block$30,0000.00.0

Allow5%Wastage$305,183.00

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17.WaterGrand Total :$401,280.00


Rate

a.Initial Cost

-Initial set up & maintenance$200,000.00

-Water Meter - W.S.D.Included

-Water Tank & Pump$15,0002 no1.0$30,000.00

-Vertical Pipe with Gate Valve( Tower Block )$12047.0 m2.0$11,280.00

b.Running Cost$10,00016 mths$160,000.00

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18.ElectricityGrand Total :$3,321,000.00


Rate

a.Initial Cost

-Allow for Generator-60KVA(3,000/M);125KVA(3,800/M);220KVA(4,800/M)$4,8005 mths3$72,000.00

-Fuel, Oil and gas for ditto$15,0005 mths3$225,000.00

-Main Switch Board$200,000.00

-Vertical Cable(400A x 1 cables x 2 sets)Incl.$80047.0 m2. Blk(s)$75,200.00

-Temporary Lighting$12,000241.0$288,000.00

-Sub-Main Switch Board0.0

-Temporary Transformer room/CLP cable$200,000.00

> Deposit for Lighting Co.N/A

b.Running Cost

-Electrician$15,00016 mths21.0$480,000.00

-Riser$3,4002.0$6,800.00

-Electricity Charges$24,00012 mths$150,000.00

-Electricity for Bldg A (for Adjoining site) (Special Contract requirements)$1,600,000.00

Allowance for MPF, Double Payets.5%$24,000.00

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19.Testing and SampleGrand Total :$120,000.00


Rate

a.Testing$100,000.00

b.Curing Tank, etc.Included0.0

c.Samples submission$20,000$20,000.00

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20.Other ItemsGrand Total :0.0


NIL

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Sum_Pre - Tender

Sample Case for Preliminaries Cost Build UP

Summary of Preliminaries CostDate :20/01/11Breakdown of Bill No. 1 - Preliminaries

Project Name: Construction of a Building Project

Original Contract Period:445 days

Forecast Contract Period:16.0

Engineer's Budget:$475,000,000.00

ItemDescriptionsAmountOriginalSubmit

1Bond$225,625.00

2Site Management$6,504,000.00

3Setting out$3,110,000.00

4Insurances$7,125,000.00

5Levies$3,372,500.00

6Site Cleaning$4,662,940.00

7Plant$4,352,400.00

8Safety Management$2,260,200.00

9Environmental Management$220,000.00

10Watchmen$665,500.00

11Site Accommodation for Contractor$702,400.00

12Site Offices for Employer's Representatives$539,940.00

13Transportation0.0

14Entertainment and Other Expenses$384,000.00

15Hoarding$65,000.00

16Scaffolding$6,608,843.00

17Water$401,280.00

18Electricity$3,321,000.00

19Testing and Sample$120,000.00

20Other ItemsN / A

Total for Preliminaries Cost:$44,640,628.000.0

Average per month$2,790,039/mth

% of Tender Sum9%

Breakdown - Tender

Project Name: Construction of a Building ProjectDate :20/01/11

Contract No. : N/ARevision :a

1.Sureties or SecurityGrand Total :$225,625.00T


Rate

Amount of Bond =HK$4,750,000.00for construction period

Allow1.5%of Bond or Cash Security$106,875$106,875.00

France :5.0%$118,750$118,750.00

Amount of Bond =0.0%of Contract Sum - for Defects liability period

Allow0.0%of Bond or Cash Security0.00.0

Handling Fee :N/A

2.Contractor's SuperintendentsGrand Total :$6,340,000.00T


Rate

a.Construction Period

-Project Manager/A PM$80,00016 mths1PM$1,280,000.00

-Site Agent$28,00016 mths1SA$448,000.00

-General Foreman$22,00016 mths1GF$352,000.00

-Foreman$19,00016 mths3F$912,000.00

-A. Foreman$15,00016 mths3AF$720,000.00

-Building Services Co-ordinator (BSCo)/ABSCo$43,00016 mths1Bs Co$688,000.00

-Senior Q.S.( Including for final account )$35,00016 mths00.0

-Q.S.( Including for final account )$26,00016 mths1QS$416,000.00

-A.Q.S.( Including for final account )$15,00016 mths1A.Q.S.$240,000.00

-Project Co-ordinator$22,00016 mths1PC$352,000.00

-Site Engineer$22,0008 mths1SE$176,000.00

-Graduate Engineer$14,00016 mths00.0

-Ex-CITA$3,50016 mths00.0

-Site Clerk$8,50016 mths1Clerk$136,000.00

-Store Keeper$8,00016 mths00.0

-Amah$7,50016 mths0Amah0.0

-Labour$12,50016 mths2$400,000.00

b.Maintenance Period

-Site Agent$28,00012 mths00.0

-Foreman$19,00012 mths00.0

Allowance for MPF, Double Payets.$220,000.00

3.Setting-outGrand Total :$3,110,000.00T


Rate

a.A A, External Works & prodium

-Inital Setting Out$50,000.00




b.Super-structure( Tower Blocks )

-Initial Setting Out0.0





4.Insurance and OthersGrand Total :$9,237,410.00


Rate

A.Accident or Injury to Workers

a.Employee Compensation


b.Levies for Employee Compensation

Allow11.30%of Employee Compensation

Sub-Total :$5,700,000.00T

B.Damage to Person and PropertyRate

a.Contractors All Risk Insurance

Allow0.30%$1,425,000.00

b.Plant Value

Allow1.0%of Plant ValueN / A

> Tower Crane

> Material Hoist

> Passenger Hoist

> General Plants1

c.Execss0.0

Sub-Total :$1,425,000.00T

C.In Compliance with Enactments and RegulationsRate

a.Allow0.65%(0.25%+0.40%) of Engineer's Budget

Engineer's Budge$475,000,000.00

> Lift

> Electrical

> ACMV

> Fire Service

Sub-Total$475,000,000


b.Allow0.03%of Engineer's Budge for HKCA$142,500.00

Allow0.03%of Engineer's Budget for Construction Workers Registration$142,500.00

Sub-Total :$2,112,410.00T

D.Professional Indemnity CoverRate

a.Allowof Amount stated in Tender Document

Sub-Total :0.0T

5.Site Cleanliness & Clearance of Site on CompletionGCC 35 & 38Grand Total :$4,662,940.00T


Rate

a.Site Cleanliness

-Progress Cleaning

> Tower Blocks$15,00016 mths15.01.0$3,600,000.00

> Podium & External Works + Car Park Block$15,00016 mths0.00.0

-Hack Off of Floor Screeding0.0

-Cleaning of Tiles0.0

-Cleaning of Sanitary Fittings0.0

-Temp. Refuse Chute$99546 m2$91,540.00

b.Clearance of Site on Completion

-Tower Blocks$15,0001 mths15.01.0$225,000.00

-> Podium, External Works & Car Park$15,0001 mths0.00.0

c.General Labour (Defect Libilities Period)

-Tower Blocks$15,00012 mths0.01.00.0

d.Remove rubbish off site to dumping area (incl waste disposal fee)$1,55524 floor20.0 trucks746,400.0

ditto for podium0.00.0

e.Allow0.50%of Contract Sum for Waste dumpingincl. In above

6.Hired and hire-purchase Construction PlantGrand Total :$4,352,400.00


Rate

A.General Plants

a.Concrete pump trucks (for Tower)$7,0001 days00.0

b.Lorry for transport in % bending Yard$10,0008 mths00.0

c.Mobile Crane - 50T$56,2002 mths1$112,400.00

d.Mobile Crane - 80T$120,0001 mths1$120,000.00

e.mobile crane for off site yard 27 ton$30,0004 mths00.0

f.Fuel, Oil and gas for ditto$2,5004 mths00.0

g.Small Tools$4,00016 mths1$64,000.00

h.Maintenance$2,00016 mths1$32,000.00

i.Mechanical Hardware0.016 mths10.0

Sub-Total :$328,400.00T







> Cable2.0Included



- Running Cost


> Rental (Mast = 41m)$30,00002.00.0





Sub-Total :$608,000.00T

b.Passanger HoistRate

a.0no(s). for each Tower Block10storeys &0 mthsX 1 Towers

- Erection and Dismantle$400,00010.00.0

- Rental$50,00012 mths10.00.0

- Hoist Operator$8,00012 mths10.00.0


Sub-Total :0.0T

D.Tower CraneRate








- Running Cost

> Rent$55,00010 mths12. Blk(s)$1,100,000.00



> Climbing ( 1st times )$128,0001.0 times2. Blk(s)$256,000.00



Sub-Total :$3,416,000.00T

E.GondolaRate




Sub-Total :0.0T

7.SafetyPRE 8.210Grand Total :$2,260,200.00T


Rate

a.Safety Audit( 2 times / year )$7,0003.0 times$21,000.00

b.Safety Officer$28,00016 mths2$896,000.00

c.Assistant Safety Officer$18,00016 mths1$288,000.00

d.General Labour

-Tower Blocks$15,00016 mths21. Blk(s)$480,000.00

e.Tools$1,50016 mths1$24,000.00

f.Safety material for balcony and lift shaft 1000/lift shaft)$1,00024 floor41. Blk(s)$96,000.00

f.Safety Precautions

-Extinguisher

> Tower Block$5501024.0 sty$132,000.00

-Fire Pump with Pipe

> Tower Block$15,0001.0 tower00.0

Str opgs & Main roof W/P$5,000224$240,000.00

Allowance for MPF, Double Payets.ForSafety OfficerAssistant Safety Officer5%$83,200.00

8.NuisanceGrand Total :$220,000.00T


Rate

a.Dust Control$50,000.00

b.Noise Control$50,000.00

c.Site Drainage System

-Dewatering$50,000.00

-Temporary Channels & Drainage0.0

d.Wheel Washing Bay$70,0001$70,000.00

e.Recyle Water System$200,00000.0

9.Watchmen ( Security )Grand Total :$665,500.00T


Rate

a.Watchman (day and night)$23,00019 mths2$655,500.00

c.Inter Card System$10,000.00

10.Site Accommodation for ContractorGrand Total :$702,400.00T


Rate

a.Initial Set Up

-Set up Site Office$1,200180.0 m2$216,000.00





-Toilet accommodation (10+7WC, 12+7U, 9+7basin.)$62,400.00


-Other Equipment & Facilities

> Air Conditioner$4,00010$40,000.00

> Office Furniture and stationary$5,00016 mths$80,000.00

> Computer System (Clerk-1, QS-1, SA-1, BS-1, PC-1)$5,0006$30,000.00

> Photo Copy Machine$8,0001$8,000.00

> Fax. Machine$3,0001$3,000.00

> Tel. Handset$6008$4,800.00

-off site yard incl. elect. & water$10,0000 mths0.0

b.Running Cost







> Site Agent$50016 mths1$8,000.00


> Foreman$50016 mths2$16,000.00



> Watchman$50016 mths1$8,000.00




11.Office for SOGrand Total :$516,740.00T


Rate

a.Initial Set Up

-Set Up Site Office$1,200140.0 m$168,000.00





-Toilet accommodation (3+1WC, 2U, 3+1basin.)0.0


b.Dismantle and Reinstatement existing pavement(allow lump sum)0.0

c.Furniture & Equipments

-Air Conditioners$4,00012$48,000.00

-Office Furniture and Stationary$1,000120.0 m$120,000.00

-Photo Copy Machine$6,5001$6,500.00

-Fax. Machine$3,0001$3,000.00

-Computer System$13,0003$39,000.00

-Radio Pager$50000.0

-Mobile Phone$3,0003$9,000.00

-Camera( Automatic & Fiilm )$1,5002$3,000.00

-Camera( Digital )$3,0002$6,000.00

-Tel. Handset$6002$1,200.00

d.Running Cost

-Telephone Line & Fax Line & Modem$20016 mths2$6,400.00

-Radio Pager$12016 mths2$3,840.00

-Mobile Phone Monthly Charge$50016 mths3$24,000.00

-Camera( Automatic & Fiilm )$30016 mths2$9,600.00

12.Land TransportGrand Total :0.0T


Rate

a.Engineer's Transportation

-shuttle bus

-Project Car$140,00000.0

-Insurance and Liense Fee$20,000200.0

-Mobile Phone$3,50000.0

b.Running Cost

-Driver$10,00014 mths00.0

-Fuel Consumption$8,50014 mths00.0

-Tunnel Fee$80014 mths00.0

-Mobile Phone Monthly Service$20014 mths00.0

-Maintenance Fee$1,00014 mths00.0

Allowance for MPF, Double Payets.13%0.0

13.Clerical AssistantGrand Total :0.0T


Rate

Allowance for MPF, Double Payets.$9,00016 mths00.0

14.Entertainment & Other ExpensiveGrand Total :$384,000.00T


Rate

a.Commencement x 1 ; Lunar New Year x 1 ; Lo Pan x 2 ; Finish x 1$10,0003.0 times$30,000.00

b.Petty Cash$6,00016 mths$96,000.00

c.Progress Photo$50016 mths$8,000.00

d.Combined Services Dwg.$150,000.00

e.As Built Drawing$100,000.00

15.Hoarding and Gantries, Sign BoardGrand Total :$65,000.00T


Rate

>Catchfan( Type 2 )$3,8500.0 m0.0

>Catchfan( Type 1 )$4,7500.0 m0.0

>Hoarding maintenance and removal$8500.0 m0.0

>Additional 1 no. of Site Gantry$25,0001$25,000.00

>Notice Board and Advertising

-New Erect$20,0001$20,000.00

banner$20,0001$20,000.00

Typ4 covered walkway under footbridge construction$10,0000.0 m0.0

>Site Entrance Gate$250,0000.0 blk0.0

16.ScaffoldingGrand Total :$6,608,843.00T


Rate

a.1no(s). Tower Blocks0.0

lwh

-Superstructure External - Double layer without safety net$34160,000 m1.0$5,440,000.00

-Nylon Mesh (Double Layer)$159,000 m1.0$135,000.00

-Safety Catch Fan$1651,800 m1.0$297,000.00

-Safety Canopy at Hoist & Passenger Lift(6m x 6m)$5,00011.0$5,000.00

-Bamboo Scaffolding in lift shaft$421,050 m1$44,100.00

-Ceiling$120888 m1$106,560.00

-Timber board for working platform$95800 m1$76,000.00

-Superstructure External - single layer without safety net$260 m1.00.02044831140176

-Temporary working platform$200,000.00

b.extra propping for transfer plate$230,0000.00.0

c.Temporary gutter around perimeter of tower block$30,0000.00.0

Allow5%Wastage$305,183.00

17.WaterGrand Total :$401,280.00T


Rate

a.Initial Cost

-Initial set up & maintenance$200,000.00

-Water Meter - W.S.D.Included

-Water Tank & Pump$15,0002 no1.0$30,000.00

-Vertical Pipe with Gate Valve( Tower Block )$12047.0 m2.0$11,280.00

b.Running Cost$10,00016 mths$160,000.00

18.Lighting and PowerGrand Total :$3,069,000.00T


Rate

a.Initial Cost

-Allow for Generator-60KVA(3,000/M);125KVA(3,800/M);220KVA(4,800/M)$4,8005 mths3$72,000.00

-Fuel, Oil and gas for ditto$15,0005 mths3$225,000.00

-Main Switch Board$200,000.00

-Vertical Cable(400A x 1 cables x 2 sets)Incl.$80047.0 m2. Blk(s)$75,200.00

-Temporary Lighting$12,000241.0$288,000.00

-Sub-Main Switch Board0.0

-Temporary Transformer room/CLP cable$200,000.00

> Deposit for Lighting Co.N/A

b.Running Cost

-Electrician$15,00016 mths11.0$240,000.00

-Riser$3,4002.0$6,800.00

-Electricity Charges$24,00012 mths$150,000.00

-Electricity for One Teaching Bldg(Able's Site)$1,600,000.00

Allowance for MPF, Double Payets.5%$12,000.00

19.Testing, Sample and Mock Up & sundriesGrand Total :$120,000.00T


Rate

a.core hole for BS0.0

b.Sample to be Provided by Contractor$20,0001.0$20,000.00

c.Exhibition Flat/Show Flats0.0

d.Protection to Lift Lobbies0.0

Reinstate external paving0.0

e.Phase hoardingn/a

f.Testing$100,000.00

g.Settlement Monitoring & Condition Survey0.0

h.Curing Room & Term Lab. Room0.0

I.Supply & installation of kicker block$50024 storey0.0

20.Independent Checking EngineerGrand Total :0.0T


Rate

Temporary Works - stability of tower crane; formwork design; temp. platform supported on walls inside lift shaft

Allow$10,000/mth$10,00017 mths00.0

21.Dispute Resolution AdvisorGrand Total :0.0T


Rate

Lump SumN / A

$42,941,338.00

&C&"Century Gothic,"&9P. &Pof &N

Contractors Pricing for Preliminaries Submitting Tender

1.Cost adjudication.

2.Confirming preliminaries items to be priced with amounts.

3.Allocating the price to relevant preliminaries items.

4.Finalize the price of preliminaries by adjusting the amounts in relevant preliminaries items.

Are you Capable to Price Preliminaries?

The following questions may help you decide.Are you able to work out or at least to read method statement?Are you able to work out or at least to read programme?Do you have good sense to find out risk items in Preliminaries?Do you have basic knowledge of building technology?Do you have basic knowledge of statutory requirements?Do you have good relationship with your project team?Do you have good relationship with sub-contractors and suppliers / plant hirers?Have you updated yourself from working experience and learning?Are you able and willing to work overtime or even overnight?

END

(QUESTIONS & ANSWERS)

Thank you for your attendance!