UpScale.buildPreliminaries (Construction)
Preliminaries are the time-related overhead costs of running a construction project — site establishment, supervision, insurance, temporary services, and project management — that aren't tied to specific building work.
Preliminaries — often called "prelims" — are the costs of being on site, as opposed to the costs of building something. They include the site office, the project manager's salary, insurance, temporary fencing, site amenities, security, safety equipment, crane hire, and a dozen other things that don't directly put bricks on top of each other but are essential to making it happen.
Prelims are typically quoted as a lump sum or a monthly rate, and they're one of the most important numbers in a construction contract. Why? Because prelims are time-dependent. If a project runs four months longer than planned (due to variations, delays, weather — whatever), the prelims bill increases proportionally. On a project with $80,000/month in prelims, a four-month delay adds $320,000 to your costs.
This is why prelims are a critical consideration in feasibility studies. Underestimate your construction programme by even a few months and your feasibility margin gets eaten by additional prelims. Experienced developers budget conservatively for programme duration and include contingency specifically for extended prelims.
Prelims also explain why contractors care about programme so much. The faster they finish, the less they spend on prelims — and the more margin they make. This alignment of interests (developer wants it done fast, contractor makes more money finishing fast) is one of the few areas where developer and contractor incentives naturally align.
How UpScale Handles This
UpScale's feasibility module includes a detailed cost breakdown where preliminaries are modelled as line items within your construction budget. When you adjust your programme duration, you can immediately see the impact on total development costs and project margin — no spreadsheet gymnastics required.
Related Terms
Feasibility Study
A feasibility study is a financial analysis that determines whether a property development project will generate an acceptable return before committing capital.
Development Margin
Development margin is the profit from a property development expressed as a percentage of total development costs or gross realisation, measuring the financial return on the project.
Scope of Works
A scope of works is a detailed document defining exactly what work is included in a construction contract — materials, methods, quality standards, and exclusions — forming the basis for pricing and delivery.