Preliminary estimates have been used in the construction industry since the 1930s and are considered a reliable method for accurately calculating project costs. This blog article explains the purpose of preliminary estimates and the considerations necessary for a successful estimate. It is important for civil engineers to fully understand the process of creating preliminary estimates to complete projects on time and within budget.
What is the provisional value?
A provisional amount is a provision included in a construction contract to cover the estimated cost of certain works. Works covered by a provisional amount are normally specified in the contract documents. Preliminary values are often used for jobs that are difficult to estimate, such as: For example, earthworks or special services.
To create an accurate preliminary estimate, you must have a clear understanding of the work to be performed and the cost of materials and labor. It is important to set aside a reserve amount for unexpected costs.
Using preliminary totals correctly can save time and money on a construction project. However, if the estimates are incorrect, this can lead to cost overruns and delays. Therefore, it is important for civil engineers to have a good understanding of how to prepare preliminary cumulative estimates.
How the contractor will be paid if there are temporary containment containers in place
When there are provisional values for a certain work, it is important to establish specific payment procedures for the contractor. A tentative amount is a specific amount of money allocated to carry out this specific work. Let's see what the procedure for paying the contractor is.
- Generally, at the beginning of the work, the contractor is asked to prepare a detailed list of materials for the work in question.
- Once the contractor submits the proposal, it will be analyzed and commented on by the engineer. Comments on price and other items such as materials, panels, etc. may be included.
- Both parties agree on prices and the work to be performed.
- The contractor can then continue with the work
Provisional amounts have some disadvantages.
If the original terms of reference do not specify rates for the work to be carried out that cover the provisional value, the contractor may change the rates. It may also add new rates for this type of work. This may mean that the work cannot be completed at the cost expected at the tender stage.
