In any civil engineering tender one hot potato is the preliminaries clause. This general item includes various seemingly minor items, ranging from site hoarding, pedestrian and vehicular traffic rerouting, billboards, security, temporary services, cleanliness and hygiene, to the provision of sanitary facilities and insurance against health and safety risks for the workers on site for the duration of the project. A lump sum is often quoted or sometimes this is omitted, claiming that this item is absorbed in the other rates quoted.
This approach may disqualify one contractor and give credit to another. There are possibly two types of contractors: those who are extra cautious in itemising the preliminaries clause (ably forecasting a marginal profit out of unknown variables), and those so-called "cowboys" who simply slap down the prices in their fervour to win the tender (relying heavily on var-iation orders for their profits).
Very often, when filling up the bill of quantities the preliminaries item is left out, also possibly unwittingly, assuming it only includes the "minor" necessary site preparation associated with the civil works to be undertaken (site and road reinstatement is regularly ignored).
Of course, ideally each minor item is to be priced separately such that if one is omitted, added or modified in any way, there is an allowance for adjusting the rates and the lump sum claimed for. This is where project management is very important.
At this point in time - or possibly earlier - both the contractor and the client should have their own project manager, often an architect, to advise on the preliminaries. If miscalculated these could not only land the contractor with a deficit on the job but the preliminaries could be a source of dispute between the two parties, with the project ending in the doldrums.
An accountable project manager on the client's side would advise to have the individual items listed and valued under the preliminaries clause, thus facilitating an easier and more transparent adjudication process. This not only helps in the cost comparison but also identifies the more professional contractor. A set of 'as-built' drawings, is normally included with the preliminaries. (These will soon be mandatory under the upcoming new building regulations.)
On the contractor's side a responsible project manager should identify any potential site problems that would entail greater attention - such as health and safety issues, security, etc. These should be well priced - and not undercut - possibly justified with a brief explanation. This is one underlying cue for a successful bidder.
It is most unfair to adjudicate the best offer on preliminary items. Preliminary items should be valued and costed by the developer. These costs should be fixed in the BOQ (bills of quantity), meaning that each bidder would have these costs equal and the competition would rely on the actual construction items.
This eliminates the risk that the so-called cowboy contractors avoid pricing these items, thereby risking that they will not be implemented at all.
Site management
When the services of sub-contractors are sought, it is even more important to seek the services of a full-time, site-specific project manager, ensuring co-ordination between similar or different trades on a programme. A hierarchy of management and communication of orders needs to be established through an organogram (organisation chart) to avoid delays and confusion from conflicting orders: One ship, one captain.
FIDIC's own design and build document (orange book) clause 4.3 establishes the importance of the contractor's representative on site: "The contractor's representative shall dedicate his whole time to directing the preparation of the construction documents and full execution of works. Whenever the contractor's representative is to be absent from site, a suitable replacement person shall be appointed, and the employer's representative shall be notified accordingly."
Therefore this goes to emphasise the importance of the project manager's co-ordination role in tandem with the client's project manager. Most local contractors are already well organised in this respect, making them more eligible for selective tendering, particularly in the private sector.
A different case scenario may arise when the client/developer is the contractor. (He may naturally appear in his personal capacity or o.b.o. one of his companies). The project manager is now even more important. There is a greater need to control and regulate, to self-manage resources and ensure adhesion to planning permission and standing legislation related to health and safety and building regulations in force.
Valuation
Finally if a project is expected to attain a smooth implementation, preliminary items should be valued by developers to achieve a better level playing field to bidders and it would be at the discretion of the developer to increase or decrease these elements of risk. The role of the project manager should go beyond programming, cost and quality control. It should also extrapolate into promoting a healthy working relationship between the architect, the client and the contractor treating all three on equal grounds.
All our life is full of projects ranging from planning a year's workload to planning a wedding. Projects, when taken as a challenge, enrich our life's endeavours in both work and social environments. Every project is therefore a building block - although each is unique, all practically undergo the same process, to build life's exper-ience and wisdom.
The reward of completion is a self-fulfilling achievement in its own right, or as is often said: "nothing ventured, nothing gained"; and "the first reward of a thing well done is to have done it!"