Preliminary Costs

The overhead and setup costs a contractor charges for running a renovation project, separate from the actual construction work — such as site setup, scaffolding, skip hire, and project management.

Preliminary costs (often called “prelims”) are the overhead expenses your contractor incurs to set up and manage your renovation project. They cover everything needed to run the job that isn’t directly part of the construction work itself.

What’s included in preliminary costs

Prelims typically cover:

  • Site setup and protection — dust sheets, temporary walls, floor protection, hoarding
  • Scaffolding — erection, hire, and dismantling
  • Skip hire and waste removal — for demolition and construction debris
  • Temporary services — portable toilets, temporary lighting, temporary water supply
  • Project management time — the contractor’s time planning, coordinating, and supervising
  • Insurance — site-specific cover during the works
  • Tools and equipment — hire of specialist tools, generators, pumps
  • Health and safety — signage, first aid, PPE for workers

How prelims appear in your quotation

Some contractors list preliminary costs as a separate line item in their quotation, while others bundle them into the overall project price. Neither approach is wrong, but a separate breakdown gives you more transparency about where your money goes.

On a typical home renovation, preliminary costs usually account for 8-15% of the total project cost, depending on the size and complexity of the job.

Why prelims matter for your budget

Understanding preliminary costs helps you:

  • Compare quotes fairly — one contractor’s “cheaper” price might exclude prelims that another includes
  • Anticipate real costs — prelims are a genuine expense, not contractor padding
  • Budget accurately — they’re a significant portion of the total spend
  • Ask the right questions — “What’s included in your prelims?” is a smart question when reviewing a quotation

When comparing multiple quotes, make sure each contractor’s prelims cover the same items. Differences in what’s included can make a direct price comparison misleading.