HKIS (QSD) CPD

Topic : Contractor’s 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

Contractor’s 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

1. Standard preliminaries items (See Sample Case)2. Contract requirements3. Statutory requirements4. Payment method for preliminaries items5. Maximum % of preliminaries stated in the tender documents6. Type of Contract (Lump sum with or w/o quantities)7. Contract period (and actual construction period)8. Amount of LD (and EOT clause)9. Reputation of the Employer and Consultants10. Mode of Sub-contracting11. Location of the Site12. Ground condition13. Market condition14. Contractor’s resources, financial capability and workload15. Contractor’s 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. Contractor’s 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

1. Initial cost (e.g. premium for insurances, set up cost for site offices, tower crane, scaffolding, electricity and water, etc.)

2. Work related cost (e.g. setting out & levies, etc.)3. Time related cost (e.g. watchmen & site management staff, etc.)4. Removal cost (e.g. removal cost for site offices, tower crane, scaffolding,

electricity and water, etc.)5. Stipulated payment terms for preliminaries items

Examples :-● 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 Items1. Bond2. Site Management3. Setting out4. Insurances5. Levies6. Site Cleaning7. Plant8. Safety Management9. Environmental Management10. Watchmen11. Site Accommodation for Contractor12. Site Offices for Employer’s Representatives13. Transportation14. * Entertainment and Other Expenses15. Hoarding16. Scaffolding17. Water18. Electricity19. Testing and Sample20. Other Items

* No such relevant preliminaries items in BQ/SOR

Preliminaries Items1. Bond

1. 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 Items2. Site Management

1. 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 Items3. Setting out

1. To be subletted or done by Contractor’s in-house staff? 2. Land surveying (Initial setting out)3. Setting out works (Levellers)4. Surveying tools and equipment

Preliminaries Items4. Insurances

1. 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 Items5. Levies

1. 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 Cleaning

1. 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. Plant

1. 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 Management

1. 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 Management

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

Preliminaries Items10. Watchmen

1. Watchmen2. Guard house3. Handkey access control system4. CCTV system

Preliminaries Items11. Site Accommodation for Contractor12. Site Offices for Employer’s Representatives

1. Site offices and facilities for Employer’s 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. Transportation

1. Contract car or Contractor’s 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 Items15. Hoarding

1. 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 Items16. Scaffolding

1. 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. Water

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

Preliminaries Items18. Electricity

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

Preliminaries Items19. Testing and Sample

1. Testing fee (e.g. concrete & reinforcement, etc.)2. Testing equipment (e.g. concrete cube mould, slump cone &

curing tank, etc.)3. Samples submission

Preliminaries Items20. Other Items

Some 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

1. Bond Grand Total : 225,625.00HK$ Average per month : 14,101.56/mthHK$

RateAmount of Bond = HK$4,750,000.00 for construction period (16 months)Allow 1.5% of Bond or Cash Security (per annum) (1.5 years) 106,875$ 106,875.00HK$ Interest : 5.0% of Collateral (1/3 of bond amount) 118,750$ 118,750.00HK$

Amount of Bond = 0.0% of Contract Sum - for Defects liability periodAllow 0.0% of Bond or Cash Security -$ -HK$ Handling Fee : N/A

2. Contractor's Superintendents Grand Total : 6,504,000.00HK$ Average per month : 406,500.00/mthHK$

Ratea. Construction Period

- Project Manager/A PM 55,000$ 16 mths 1.0 nos. PM 880,000.00HK$ - Site Agent 28,000$ 16 mths 1.0 nos. SA 448,000.00HK$ - General Foreman 22,000$ 16 mths 1.0 nos. GF 352,000.00HK$ - Foreman 19,000$ 16 mths 3.0 nos. F 912,000.00HK$ - A. Foreman 15,000$ 16 mths 3.0 nos. AF 720,000.00HK$ - Building Services C o-ordinator (BSC o)/ABSCo 43,000$ 16 mths 1.0 nos. Bs Co 688,000.00HK$ - Senior Q.S. ( Including for final account ) 35,000$ 16 mths 0.0 nos. -HK$ - Q.S. ( Including for final account ) 26,000$ 16 mths 1.0 nos. QS 416,000.00HK$ - A.Q.S. ( Including for final account ) 15,000$ 16 mths 1.0 nos. A.Q.S. 240,000.00HK$ - Project Co-ordinator 22,000$ 16 mths 1.0 nos. PC 352,000.00HK$ - Site Engineer 22,000$ 8 mths 1.0 nos. SE 176,000.00HK$ - Graduate Engineer 14,000$ 16 mths 0.0 nos. -HK$ - Ex-C ITA 3,500$ 16 mths 0.0 nos. -HK$ - Site C lerk 8,500$ 16 mths 1.0 nos. Clerk 136,000.00HK$ - Store Keeper 8,000$ 16 mths 0.0 nos. -HK$ - Amah 7,500$ 16 mths 0.0 nos. Amah -HK$ - Labour 12,500$ 16 mths 2.0 nos. 400,000.00HK$

b. Maintenance Period- Site Agent 28,000$ 12 mths 1.00 nos. 336,000.00HK$ - Foreman 19,000$ 12 mths 1.00 nos. 228,000.00HK$

Allowance for MPF, Double Pay… ets. 220,000.00HK$

3. Setting Out Grand Total : 3,110,000.00HK$ Average per month : 194,375.00/mthHK$

Ratea. Podium, External Works & Car Park

- Inital Setting Out 50,000.00HK$ - Senior Surveyor 20,000$ 10 mths 4.0 nos. 1 Blk(s). 800,000.00HK$ - Leveller 16,000$ 10 mths 4.0 nos. 1 Blk(s). 640,000.00HK$ - Survey Equipment Included

b. Super-structure ( Tower Blocks )- Initial Setting Out -HK$ - Senior Surveyor 20,000$ 9 mths 5.0 nos. 1 Blk(s). 900,000.00HK$ - Leveller 16,000$ 9 mths 5.0 nos. 1 Blk(s). 720,000.00HK$ - Survey Equipment Included

Allowance for MPF, Double Pay… ets. 0% N / A

4. Insurances Grand Total : 7,125,000.00HK$ Average per month : 445,312.50/mthHK$

RateA. Accident or Injury to Workers

a. Employee CompensationAllow 1.20% of Engineer's Budget (HK$475,000,000.00) 5,700,000.00HK$

b. Levies for Employee CompensationAllow 11.30% of Employee Compensation

Sub-Total : 5,700,000.00HK$

B. Damage to Person and Property Rate

a. Contractors All Risk InsuranceAllow 0.30% of Engineer's Budget (HK$475,000,000.00) 1,425,000.00HK$

b. Plant ValueAllow 1.0% of Plant Value N / A > Tower C rane > Material Hoist > Passenger Hoist > General Plant 1.0 nos.

c. Execss -HK$

C . Professional Indemnity Cover Rate

a. Allow of Amount stated in Tender Documents

Sub-Total : 1,425,000.00HK$

5. Levies Grand Total : 3,372,500.00HK$ Average per month : 210,781.25/mthHK$

Ratea. Allow 0.65% (0.25%+0.40%) of Engineer's Budget for Pneumoconiosis and

Engineer's Budget $475,000,000.00

> Lift > Electrical > ACMV > Fire Service

Sub-Total 475,000,000$

Allow 0.65% of Engineer's Budget 3,087,500.00HK$

b. Allow 0.03% of Engineer's Budget for HKC A 142,500.00HK$

c. Allow 0.03% of Engineer's Budget for C onstruction Workers Registration Authority 142,500.00HK$

Sub-Total : 3,372,500.00HK$

Mesothelioma levy & C onstruction Industry Levy (C WRA levy included in C below)

6. Site Cleaning GCC 35 & 38 Grand Total : 4,662,940.00HK$ Average per month : 291,433.75/mthHK$

Ratea. Site C leanliness

- Progress C leaning > Tower Blocks 15,000$ 16 mths 15 lab.(s) 1 Blk.(s) 3,600,000.00HK$ > Podium & External Works + Car Park Block 15,000$ 16 mths 0 lab.(s) -HK$

- Hack Off of Floor Screeding -HK$ - C leaning of Tiles -HK$ - C leaning of Sanitary Fittings -HK$ - Temp. Refuse Chute 995$ 46 m 2.0 nos. 91,540.00HK$

b. C learance of Site on Completion- Tower Blocks 15,000$ 1 mths 15 lab.(s) 1 Blk.(s) 225,000.00HK$ - > Podium, External Works & Car Park 15,000$ 1 mths 0 lab.(s) -HK$

c. General Labour (Defect Libilities Period)- Tower Blocks 15,000$ 12 mths 0 lab.(s) 1 Blk.(s) -HK$

d. Remove rubbish off site to dumping area (incl waste disposal fee) 1,555$ 24 floor 20.0 trucks 746,400.0 ditto for podium -$ -

e. Allow 0.50% of Contract Sum for Waste dumping incl. In above

7. Plant Grand Total : 4,352,400.00HK$ Average per month : 272,025.00/mthHK$

RateA. General Plant

a. Concrete pump trucks (for Tower) 7,000$ 1 days 0.0 nos. -HK$ b. Lorry for transport in % bending Yard 10,000$ 8 mths 0.0 nos. -HK$ c. Mobile C rane - 50T 56,200$ 2 mths 1.0 nos. 112,400.00HK$ d. Mobile C rane - 80T 120,000$ 1 mths 1.0 nos. 120,000.00HK$ e. mobile crane for off site yard 27 ton 30,000$ 4 mths 0.0 nos. -HK$ f. Fuel, Oil and gas for ditto 2,500$ 4 mths 0.0 nos. -HK$

g. Small Tools 4,000$ 16 mths 1.0 nos. 64,000.00HK$ h. Maintenance 2,000$ 16 mths 1.0 nos. 32,000.00HK$ i. Mechanical Hardware -$ 16 mths 1.0 nos. -HK$

Sub-Total : 328,400.00HK$

7. Plant Grand Total : 4,352,400.00HK$ Average per month : HK$272,025.00/mth

B. Automatic Material Hoist Rate

a. 1 no(s). for each Tower Block 《 10 storeys & 11 mths 》X 2 Tower

- Set up and Dismantle (Rental) > Initial set up & Erection 29,000$ 1.0 nos. 2 Blk.(s) 58,000.00HK$ > Purchase new material hoist 70,000$ 0.0 nos. 2 Blk.(s) -HK$ > Test & Commissioning 2 Blk.(s) Included > Cable 2 Blk.(s) Included > Dismantle & Transportation 34,000$ 2 Blk.(s) 68,000.00HK$ > Enclosed by tarpaulin 14,000$ 1.0 nos. 2 Blk.(s) 28,000.00HK$

- Running Cost > Miscellenous and Maintenance 15,000$ 11 mths 1.0 nos. 2 Blk.(s) 330,000.00HK$ > Rental (Mast = 41m) 30,000$ 0.0 nos. 2 Blk.(s) -HK$ > C limbing ( at each 3 flrs = 2 times / Blk ) 5,000$ 0.0 nos. 2 Blk.(s) -HK$ > Test for Ditto 11,000$ 4 Blk.(s) Includedsteel passageway 1,200$ 10 floor 1.0 nos. 2 Blk.(s) 24,000.00HK$

Footing Sum 100,000.00HK$

Sub-Total : 608,000.00HK$ b. Passanger Hoist Rate

a. 0 no(s). for each Tower Block 《 10 storeys & 0 mths 》X 1 Towers

- Erection and Dismantle 400,000$ 1.0 nos. 0 Blk.(s) -HK$ - Rental 50,000$ 12 mths 1.0 nos. 0 Blk.(s) -HK$ - Hoist Operator 8,000$ 12 mths 1.0 nos. 0 Blk.(s) -HK$

Allowance for MPF, Double Pay…ets. 0% N / A

7. Plant Grand Total : 4,352,400.00HK$ Average per month : 272,025.00/mthHK$

D. Tower C rane Rate

a. 1 no(s). for each Tower Block 《 10 storeys & 10 mths 》 - Set up and Dismantle (Rental) > Initial set up ( Including Mobilization ) 210,000$ 1.0 nos. 2 Blk(s). 420,000.00HK$ > Foundation Support 170,000$ 1.0 nos. 2 Blk(s). 340,000.00HK$ > Test 11,000$ <0%> Included > Dismantle ( Including Delivery off Site ) 280,000$ 1.0 nos. 2 Blk(s). 560,000.00HK$ > I-beam support frame <100%> 115,000$ 1.0 nos. 2 Blk(s). 230,000.00HK$ - Running Cost > Rent 55,000$ 10 mths 1.0 nos. 2 Blk(s). 1,100,000.00HK$ > Tower C rane Operator 22,000$ 10 mths 1.0 nos. 2 Blk(s). 440,000.00HK$ > Miscellenous and Maintenance 5,000$ 10 mths 0.0 nos. 2 Blk(s). -HK$ > C limbing ( 1st time) 128,000$ 1.0 times 2 Blk(s). 256,000.00HK$ > C limbing ( 2nd to end = 6 times / Blk ) 35,000$ 1.0 times 2 Blk(s). 70,000.00HK$ > Test for Ditto 0.0 nos. Included

Sub-Total : 3,416,000.00HK$

E. Gondola Rate

- Rental 1,800$ 0 mths 0.0 nos. 1 Blk(s). -HK$ - Testing Certificate 900$ 0.0 nos. 1 Blk(s). -HK$ - Install/Dismantle 900$ 0.0 nos. 1 Blk(s). -HK$

Sub-Total : -HK$

8. Safety Management PRE 8.210 Grand Total : 2,260,200.00HK$ Average per month : 141,262.50/mthHK$

Ratea. Safety Audit / Safety Review ( 2 times / year ) 7,000$ 3.0 times 21,000.00HK$ b. Safety Officer (2nos. required in the Contract) 28,000$ 16 mths 2.0 nos. 896,000.00HK$ c. Assistant Safety Officer 18,000$ 16 mths 1.0 nos. 288,000.00HK$ d. General Labour

- Tower Blocks 15,000$ 16 mths 2.0 nos. 1 Blk(s). 480,000.00HK$ e. Tools 1,500$ 16 mths 1.0 nos. <100%> 24,000.00HK$ f. Safety materials for balcony and lift shaft 1000/ lift shaft, etc. 1,000$ 24 floor 4.0 nos. 1 Blk(s). 96,000.00HK$ f. Safety Precautions

- Extinguisher > Tower Block 550$ 10.0 nos. 24.0 sty 132,000.00HK$

- Fire Pump with Pipe > Tower Block 15,000$ 1.0 tower 0.0 nos. -HK$ Str opgs & Main roof W/P 5,000$ 2.0 nos. 24.0 nos. 240,000.00HK$

Allowance for MPF, Double Pay… ets. For Safety OfficerAssistant Safety Officer 5% 83,200.00HK$

9. Environmental Management Grand Total : 220,000.00HK$ Average per month : 13,750.00/mthHK$

Ratea. Dust C ontrol 50,000.00HK$ b. Noise Control 50,000.00HK$ c. Site Drainage System

- Dewatering 50,000.00HK$ - Temporary Channels & Drainage -HK$

d. Vehicle Washing Bay 70,000$ 1.0 nos. 70,000.00HK$ e. Wastewater Treatment System 200,000$ 0.0 nos. <100%> -HK$

10. Watchmen Grand Total : 665,500.00HK$ Average per month : 41,593.75/mthHK$

Ratea. Watchman (day and night) 23,000$ 19 mths 1.5 nos. 655,500.00HK$ b. Guard House (Deliver from Godown) -$ 1.0 nos. -HK$ c. Handkey Access Control System 10,000.00HK$ d. CCTV System N/A

11. Site Accommodation for Contractor Grand Total : 702,400.00HK$ Average per month : 43,900.00/mthHK$

Ratea. Initial Set Up

- Set up Site Office 1,200$ 180.0 m2 216,000.00HK$ - Container Office (initial) 1,200$ 3 mths 3 nos. 10,800.00HK$ - Delivery & collection charge 1,200$ 2 trip 3 nos. 7,200.00HK$ - Container Office (Toilet) 1,200$ 16 mths 1 nos. 19,200.00HK$ - Delivery & collection charge 1,200$ 2 trip 1 nos. 2,400.00HK$ - Toilet accommodation (10+7WC, 12+7U, 9+7basin.) 62,400.00HK$ - Relocate site office <allow> 50,000.00HK$ - Other Equipment & Facilities

> Air Conditioner 4,000$ 10.0 nos. 40,000.00HK$ > Office Furniture and stationery 5,000$ 16 mths 80,000.00HK$ > Computer System (C lerk-1, QS-1, SA-1, BS-1, PC -1) 5,000$ 6.0 nos. 30,000.00HK$ > Photo C opy Machine 8,000$ 1.0 nos. 8,000.00HK$ > Fax. Machine 3,000$ 1.0 nos. 3,000.00HK$ > Tel. Handset 600$ 8.0 nos. 4,800.00HK$

- off site yard incl. elect. & water 10,000$ 0 mths -HK$

11. Site Accommodation for Contractor Grand Total : 702,400.00HK$ Average per month : 43,900.00/mthHK$

Rateb. Running Cost

- Telephone Line & Fax line 200$ 16 mths 6.0 nos. 19,200.00HK$ - Mobile Phone Monthly Charge 200$ 0 mths 0.0 nos. -HK$ - Pager to Site Staff

> Site Agent 120$ 0 mths 0.0 nos. -HK$ > General Foreman 120$ 0 mths 0.0 nos. -HK$

- Radio Communication System > Site Agent 500$ 16 mths 1.0 nos. 8,000.00HK$ > General Foreman 500$ 16 mths 1.0 nos. 8,000.00HK$ > Foreman 500$ 16 mths 2.0 nos. 16,000.00HK$ > Assistant Foreman 500$ 16 mths 1.0 nos. 8,000.00HK$ > Project Co-ordinator 500$ 16 mths 1.0 nos. 8,000.00HK$ > Watchman 500$ 16 mths 1.0 nos. 8,000.00HK$ > Tower C rane ( Tower Block ) 500$ 10 mths 1.0 nos. 1 Blk(s). 5,000.00HK$

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

d. Portable Toilet 1,200$ 16 mths 2.0 nos. 38,400.00HK$

12. Site Offices for Employer's Representatives Grand Total : 535,940.00HK$ Average per month : 33,496.25/mthHK$

Ratea. Initial Set Up

- Set Up Site Office 1,200$ 140.0 m² 168,000.00HK$ - Container Office (initial) 1,200$ 2 mths 2 nos. 4,800.00HK$ - Delivery & collection charge 1,200$ 2 trip 2 nos. 4,800.00HK$ - Container Office (Toilet) 1,200$ 2 mths 2 nos. 4,800.00HK$ - Delivery & collection charge 1,200$ 2 trip 2 nos. 4,800.00HK$ - Toilet accommodation (3+1WC, 2U, 3+1basin.) -HK$ - Relocate site office <allow> 50,000.00HK$

b. Dismantle and Reinstatement existing pavement(allow lump sum) -HK$

c. Furniture & Equipment- Air Conditioners 4,000$ 12.0 nos. 48,000.00HK$ - Office Furniture and Stationary 1,000$ 120.0 m² <100%> 120,000.00HK$ - Photo Copy Machine 6,500$ 1.0 nos. <100%> 6,500.00HK$ - Fax. Machine 3,000$ 1.0 nos. <100%> 3,000.00HK$ - Computer System 13,000$ 3.0 nos. <100%> 39,000.00HK$ - Radio Pager 500$ 0.0 nos. -HK$ - Mobile Phone 3,000$ 3.0 nos. 9,000.00HK$ - Camera 1,500$ 6.0 nos. 9,000.00HK$ - Tel. Handset 600$ 2.0 nos. 1,200.00HK$

d. Running Cost- Telephone Line & Fax Line & Modem 200$ 16 mths 2.0 nos. 6,400.00HK$ - Radio Pager 120$ 16 mths 2.0 nos. 3,840.00HK$ - Mobile Phone Monthly C harge 500$ 16 mths 3.0 nos. 24,000.00HK$ - Camera 300$ 16 mths 6.0 nos. 28,800.00HK$

13. Transportation Grand Total : -HK$ Average per month : -HK$

Ratea. Employer's Representatives' Transportation

- shuttle bus - Contract Car 140,000$ 0.0 nos. -HK$ - Insurance and Liense Fee 20,000$ 2.00 yrs. 0.0 nos. -HK$ - Mobile Phone 3,500$ 0.0 nos. -HK$

b. Running C ost- Driver 10,000$ 14 mths 0.0 nos. -HK$ - Fuel C onsumption 8,500$ 14 mths 0.0 nos. -HK$ - Tunnel Fee 800$ 14 mths 0.0 nos. -HK$ - Mobile Phone Monthly Service 200$ 14 mths 0.0 nos. -HK$ - Maintenance Fee 1,000$ 14 mths 0.0 nos. -HK$

Allowance for MPF, Double Pay… ets. 13% -HK$

14. Entertainment & Other Expenses Grand Total : 384,000.00HK$ Average per month : 24,000.00/mthHK$

Ratea. Commencement x 1 ; Lunar New Year x 1 ; Lo Pan x 2 ; Finish x 1 10,000$ 3.0 times 30,000.00HK$ b. Petty Cash 6,000$ 16 mths 96,000.00HK$ c. Progress Photo 500$ 16 mths 8,000.00HK$ d. Combined Services Dwg. 150,000.00HK$ e. As Built Drawing 100,000.00HK$

15. Hoarding Grand Total : 65,000.00HK$ Average per month : 4,062.50/mthHK$

Rate> Catchfan ( Type 2 ) 3,850$ 0.0 m -HK$ > Catchfan ( Type 1 ) 4,750$ 0.0 m -HK$ > Hoarding maintenance and removal 850$ 0.0 m -HK$ > Additional 1 no. of Site Gantry 25,000$ 1.0 nos. 25,000.00HK$ > Notice Board and Advertising

- New Erect 20,000$ 1.0 nos. 20,000.00HK$ banner 20,000$ 1.0 nos. 20,000.00HK$

Typ4 covered walkway under footbridge construction 10,000$ 0.0 m -HK$ > Site Entrance Gate 250,000$ 0.0 blk -HK$

16. Scaffolding Grand Total : 6,608,843.00HK$ Average per month : 413,052.69/mthHK$

Ratea. 1 no(s). Tower Blocks -HK$

- Superstructure External - Double layer without safety net 34$ 160,000 m² 1 Blk(s). 5,440,000.00HK$ - Nylon Mesh (Double Layer) 15$ 9,000 m² 1 Blk(s). 135,000.00HK$ - Safety Catch Fence 165$ 1,800 m 1 Blk(s). 297,000.00HK$ - Safety Canopy at Hoist & Passenger Lift (6m x 6m) 5,000$ 1.0 nos. 1 Blk(s). 5,000.00HK$ - Bamboo Scaffolding in lift shaft 42$ 1,050 m² 1.0 nos. 44,100.00HK$ - Ceiling 120$ 888 m² 1.0 nos. 106,560.00HK$ - Timber board for working platform 95$ 800 m² 1.0 nos. 76,000.00HK$ - Superstructure External - single layer without safety net 26$ 0 m² 1 Blk(s). -HK$ - Temporary working platform 200,000.00HK$

b. Extra propping for transfer plate 230,000$ 0 Blk(s). -HK$

c. Temporary gutter around perimeter of tower block 30,000$ 0 Blk(s). -HK$

Allow 5% Wastage 305,183.00HK$

17. Water Grand Total : 401,280.00HK$ Average per month : 25,080.00/mthHK$

Ratea. Initial Cost

- Initial set up & maintenance 200,000.00HK$ - Water Meter - W.S.D. Included- Water Tank & Pump 15,000$ 2 no 1 Blk.(s) 30,000.00HK$ - Vertical Pipe with Gate Valve ( Tower Block ) 120$ 47.0 m 2 Blk.(s) 11,280.00HK$

b. Running Cost 10,000$ 16 mths 160,000.00HK$

18. Electricity Grand Total : 3,321,000.00HK$ Average per month : 207,562.50/mthHK$

Ratea. Initial C ost

- Allow for Generator-60KVA(3,000/M);125KVA(3,800/M);220KVA(4,800/M) 4,800$ 5 mths 3.0 nos. 72,000.00HK$ - Fuel, Oil and gas for ditto 15,000$ 5 mths 3.0 nos. 225,000.00HK$ - Main Switch Board 200,000.00HK$ - Vertical Cable (400A x 1 cables x 2 sets) Incl. 800$ 47.0 m 2 Blk(s). 75,200.00HK$ - Temporary Lighting 12,000$ 24.0 flrs. 1 Blk.(s) 288,000.00HK$ - Sub-Main Switch Board -HK$ - Temporary Transformer room/CLP cable 200,000.00HK$

> Deposit for Lighting Co. N/A

b. Running Cost- Electrician 15,000$ 16 mths 2.0 nos. 1 Blk.(s) 480,000.00HK$ - Riser 3,400$ 2 Blk.(s) 6,800.00HK$ - Electricity Charges 24,000$ 12 mths 150,000.00HK$ - Electricity for Bldg A (for Adjoining site) (Special C ontract requirements) 1,600,000.00HK$

Allowance for MPF, Double Pay…ets. 5% 24,000.00HK$

19. Testing and Sample Grand Total : 120,000.00HK$ Average per month : 7,500.00/mthHK$

Ratea. Testing 100,000.00HK$ b. Curing Tank, etc. Included -HK$ c. Samples submission 20,000$ 20,000.00HK$

20. Other Items Grand Total : -HK$ Average per month : -HK$

NIL

Sample Case for Preliminaries Cost Build UP

Summary of Preliminaries Cost Date : 20/01/11

Project Name: Construction of a Building Project

Original Contract Period : 445 daysForecast Contract Period : 16 monthsEngineer's Budget : $475,000,000.00

Item Descriptions Amount

1 Bond 225,625.00HK$ 2 Site Management 6,504,000.00HK$ 3 Setting out 3,110,000.00HK$ 4 Insurances 7,125,000.00HK$ 5 Levies 3,372,500.00HK$ 6 Site C leaning 4,662,940.00HK$ 7 Plant 4,352,400.00HK$ 8 Safety Management 2,260,200.00HK$ 9 Environmental Management 220,000.00HK$

10 Watchmen 665,500.00HK$ 11 Site Accommodation for Contractor 702,400.00HK$ 12 Site Offices for Employer's Representatives 539,940.00HK$ 13 Transportation -HK$ 14 Entertainment and Other Expenses 384,000.00HK$ 15 Hoarding 65,000.00HK$ 16 Scaffolding 6,608,843.00HK$ 17 Water 401,280.00HK$ 18 Electricity 3,321,000.00HK$ 19 Testing and Sample 120,000.00HK$ 20 Other Items N / A

Total for Preliminaries Cost: 44,640,628.00HK$

Average per month 2,790,039/mth$ % of Tender Sum 9%

Contractor’s 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.1. Are you able to work out or at least to read method statement?2. Are you able to work out or at least to read programme?3. Do you have good sense to find out risk items in Preliminaries?4. Do you have basic knowledge of building technology?5. Do you have basic knowledge of statutory requirements?6. Do you have good relationship with your project team?7. Do you have good relationship with sub-contractors and suppliers / pl

ant hirers?8. Have you updated yourself from working experience and learning?9. Are you able and willing to work overtime or even overnight?

END

(QUESTIONS & ANSWERS)

Thank you for your attendance!