Builders often ask why the Preliminary & General (P&G) section is included in our estimates. It’s common for builders to overlook these costs, only to later wonder why their projects aren’t as profitable as expected.
What is P&G?
P&G represents essential indirect expenses required to manage a construction project efficiently. While these costs may not be immediately visible on-site, they are crucial for smooth operations.
Examples of P&G Costs:
Insurances
Signage
Temporary Hire Items (site toilet, site shed, rubbish bins, site fences)
Temporary Utilities (Water & Electricity)
Project Management & Administration
Health & Safety Provisions
Consumables and Small Plant Recovery
Freight - equipments and materials
Travel & Vehicle expenses
Why Charging for P&G is Essential?
Covers hidden costs
Many P&G items—such as permits, insurance, site security, and administrative expenses—aren’t visible on-site but are fundamental for project execution.
Ensures project viability
Factoring P&G costs into the budget helps contractors estimate expenses accurately and avoid financial losses due to overlooked costs.
Professionalism and transparency
Clearly listing P&G charges in quotes assures clients that all project aspects have been considered and priced fairly..
Risk mitigation
Properly managing P&G expenses helps prevent budget overruns and potential disputes by ensuring all necessary costs are accounted for from the start.
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