27 JUL 2018
Preliminaries as a percentage of contracts have fallen in the last two quarters for which figures are available (4Q 2017 and 1Q 2018).
While preliminaries are specified and measured as part of a tender they are often subject to adjustment depending on the current market conditions. The 70 projects analysed for the last two quarters show preliminaries falling almost 20% from a recent peak of 15.7% in 3Q 2017, to 12.8% in 1Q 2018 (median of the quarterly sample). The figures are likely to change as samples improve, but the current figures would indicate that the market is hardening. This reflects a fall in new work new orders of 27% over the same period, again from a peak in new orders in 3Q 2018.
The BCIS Preliminaries study is part of the contract percentages studies published in the BCIS Online service. The data is based on the analysis of contract pricing in agreed contracts submitted to BCIS.