Estimating and Tendering for Construction Work
CB Construction Limited
Student Accommodation Steel frame solution
Project Overheads GFA (m2) 11.59%
Date net trade value
Description
Note
Protection materials
Quant Unit Factor 1 697 m
2
COMMERCIAL/FINANCIAL
Fixed charges 1.50
1
£1.85 m
Time charges
Sub-tot
2 546
–
–
–
–
–
–
–
Insurance – all-risks
0.002
1
2 220 000
4 440
–
Insurance – hired plant
0.019
1
100 000
1 920
–
Insurance – emply liab
0.003
1
2 220 000
6 660
–
Insurance – premium tax
0.050
1
15 240
762
–
Insurance excesses
1
2 000
4 000
–
1 1
2 220 000
2 220 –
– –
–
–
Architectural fees
–
–
Structural engineer
–
–
M&E advice and coord
–
–
QS fees
–
–
CAD file on disk
–
–
Building regs
–
–
–
–
Professional indemnity p Legal advisors pre-constr DESIGN & BUILD FEES AND COSTS
2 nr 0.001 –
1697 12-Jul-04
26 446
20 002
–
Fig. 15.3 Project overheads
Similarly the staff costs are difficult to share between valuations because they are usually higher at the beginning of a contract and taper off gradually towards the end. Staff costs are often incurred before the start date, when mobilization activities – such as procurement of initial packages – take place. When the estimate has been reviewed by management the estimator will allocate sums of money to the preliminaries bill.This is an opportunity to ensure that a satisfactory (and possibly positive) cashflow position is secured. In particular the contractor needs to identify setting-up costs that should be claimed in the first valuation as fixed charges. If all site and general overheads were reimbursed in proportion to time the contractor would have more expenditure than income and this poor cashflow position would persist during most of the contract duration. The early fixed charges often include: Employer’s requirements Accommodation Furniture 214