Preliminaries

3.
0 PRELIMINARIES WORK
Preliminaries work is a list of work as part of the bill of quantities. It consists of preparatory
work that is not permanent work but is necessary for the completion of the project. It is also a
list of work and instructions with a specific purpose that the contractor must follow at the
beginning of the project. In the first stages of the contract, the employer and the contractor
must concur on the method of valuation and payment for the preliminary work item.
The preliminaries work section in bill of quantities is one of the most important
sections requiring preliminary services that describes and includes information about the
project, project requirements, services to be provided and the facility to be prepared, contract
terms, etc. This item needs to be divided into two. First is a descriptive part intended to give
the contractor an overall picture of the project that does need to be unpriced. The other part is
the part that the contractor must prepare and that must be priced.
3.1 PROGRESS PAYMENT FOR PRELIMINARIES WORK
Progress payment for preliminaries work for each item divided into three categories:
Initial cost
Progressive cost
Completion cost
INITIAL COST
The initial amount to be paid to the Contractor, which shall be paid as a lump sum and
must be entered as Interim Payment Certificate No. 1. The Surveyor does not only determine
the items to be specified according to the importance of the needs of the project and the
wishes of the Employer, but surveyor shall also determine the amount of payment for the
initial cost. This amount is paid after the work done.
PROGRESSIVE COST
Progressive cost represents ongoing costs incurred during the term of the contract. Costs are
paid on an ongoing basis, whether hourly, daily, weekly, monthly, or annually, paid
continuously.
The list below is a checklist of the basic ongoing project expenses found in the
preliminary work:
Site office
Site services
Toilet facilities
Site supervision
Site engineer
Safety and welfare
COMPLETION COST
This payment must be paid in lump sum after the work completion, or the project
finished. It also shall be entered as the last of Interim Payment Certificate for example the
contract period is 2 years equals to 24 months that means completion cost must entered as
Interim Payment Certificate No.24. Commonly, it is a cost for reopening the provisional sum
in the preliminaries work.
3.2 DIFFERENCE BETWEEN PAM CONTRACT 2018 AND P.W.D FORM 203A
FOR PRELIMINARIES WORK
CLAUS PAM CONTRACT 2018 CLAUS P.W.D FORM 203A

E E
3.5 Within twenty-one (21) days after 12.0 Within fourteen (14) days
receipt of the award letter (or within (12.1) after receipt of the acceptance
such longer period as may be letter by the Government, the
agreed to in writing by the Contractor shall submit a
Architect), the Contractor shall work programme to the S.O.
submit to the Architect, for his for approval. A work
information, six (6) copies of the programme for the
schedule of work (unless a higher performance of the work
number is specified in the Contract (hereinafter referred to as the
Documents) showing the order in "Work Programme") in such
which he proposes to perform the form and with such detail as
work. the Contracting Officer may
determine, setting forth the
particulars of the work so that
the Government may monitor
the progress of the work, and
a general written description
of the arrangements and
methods of construction
which the Contractor
proposes to adopt for the
performance of the work.
19.0 15.0
(19.1) Without prejudice to its obligation (15.1) Without prejudice to its
to indemnify the Employer under obligation to indemnify the
Clause 18. 0, the Contractor shall, Government under clause 14
as a condition to commencing any of this contract, the
Work under the Contract, purchase Contractor shall, as a
and maintain insurance in the joint condition to the
names of the Employer, the commencement of any work
Contractor, the Subcontractor and under this contract, purchase
all interested parties against and maintain such insurance,
personal injury, death and property with or without deductibles,
damage arising out of the as may be required to cover
performance of the Work, the liability of the Contractor
regardless of, whether or not such and any designated or other
injury, death, loss and/ or damage is subcontractors, as is set forth
caused by the performance of the in the Schedule to this
Work, death, loss and/or damage is contract.
caused by the negligence, omission,
default and/or breach of contract on
the part of Contractor, Purchaser,
Subcontractor and interested parties
and their servants and agents.
5.0 19.0 The Contractor shall be

(5.1) The Architect shall determine all (19.1) responsible for the accurate
levels necessary for the execution and proper staking of the
of the Work and shall provide the Work and for the correctness
Contractor with drawings and of the positions, levels,
information enabling the Contractor dimensions, and alignments
to construct the Work. The of all parts of the Work and
Contractor shall correct, at his own for furnishing all necessary
expense, any errors resulting from instruments, equipment and
inaccurate staking. labour in connection
therewith.
3.3 EXAMPLE OF CALCULATION FOR PRELIMINARIES WORK
There are two methods in calculating the preliminaries works.
Method 1: Pro rates on contract period

Method 2: Pro rates on value of work done
Example
1) Method 1: Pro rates on contract period
ITEM DESCRIPTION CONTRACT INTIAL COST PROGRESSIV COMPLETION

PRICE E COST
COST
A PRELIMINARI RM1,515,100.00 RM690,300.00 RM486,000.00 RM60,400.00
ES
WORK
ADDITIONAL INFORMATION:
CONTRACT SUM RM45,454,026.00

CONTRACT PERIOD 3 YEARS
PRIME COST SUM RM1,511,510.00
PROVISIONAL SUM RM960,900.00
NETT VALUE WORK DONE RM15,010,500.00
(PAYMENT NO. 15)
CALCULATION:
Progressive payment = RM486,000.00/36 months
= RM13,500.00
Payment No. 15
Initial cost RM 690,300.00

Progressive cost – (RM 13,500.00 X 15) = RM 202,500.00
Completion cost RM 0.00
RM 892,700.00
Example
2) Method 2: Pro rates on value of work done
ITEM DESCRIPTION CONTRACT INTIAL COST PROGRESSIV COMPLETION

E
PRICE COST
COST
A PRELIMINARI RM1,515,100.00 RM690,300.00 RM486,000.00 RM60,400.00

ES
WORK
ADDITIONAL INFORMATION:
CONTRACT SUM RM45,454,026.00
CONTRACT PERIOD 3 YEARS
PRIME COST SUM RM1,511,510.00
PROVISIONAL SUM RM960,900.00
NETT VALUE WORK DONE RM15,010,500.00
(PAYMENT NO. 15)
Net Contract Sum = RM45,454,026.00 – (RM1,511,510.00 + RM960,900.00)
= RM42,981,616.00
RM 15,010,500.00
%= x 100
RM 42,981,616.00
= 35%
Initial cost RM 690,300.00
Progressive cost – RM15,010,500.00 X 35% = RM5,253,675.00
Completion cost RM 0.00
RM5,943,975.00
3.4 SAMPLE OF PROGRESS PAYMENT

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3.

3.1 PROGRESS PAYMENT FOR PRELIMINARIES WORK

CLAUS PAM CONTRACT 2018 CLAUS P.W.D FORM 203A

5.0 19.0 The Contractor shall be

There are two methods in calculating the preliminaries works.

Method 1: Pro rates on contract period

ITEM DESCRIPTION CONTRACT INTIAL COST PROGRESSIV COMPLETION

CONTRACT SUM RM45,454,026.00

Progressive payment = RM486,000.00/36 months

Initial cost RM 690,300.00

Completion cost RM 0.00

2) Method 2: Pro rates on value of work done

ITEM DESCRIPTION CONTRACT INTIAL COST PROGRESSIV COMPLETION

A PRELIMINARI RM1,515,100.00 RM690,300.00 RM486,000.00 RM60,400.00

CONTRACT SUM RM45,454,026.00

CONTRACT PERIOD 3 YEARS

PRIME COST SUM RM1,511,510.00

PROVISIONAL SUM RM960,900.00

NETT VALUE WORK DONE RM15,010,500.00

(PAYMENT NO. 15)

Net Contract Sum = RM45,454,026.00 – (RM1,511,510.00 + RM960,900.00)

Progressive cost – RM15,010,500.00 X 35% = RM5,253,675.00

Completion cost RM 0.00

3.4 SAMPLE OF PROGRESS PAYMENT

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