In brief
- Site overheads cover supervision, stores, security, water, power and plant standing time, not just the visible materials.
- An estimator who has never run a site can price these items from a template and leave the site underfunded once work starts.
- Check the rates behind each overhead item line by line and ask who on the team has actually run a site of this size in Puntland.
Contents
Site overheads experience gaps in Bosaso show up when an estimator prices supervision, stores, water, power and plant cover without having run a site of that size. The bid can look complete and still leave the site without a storekeeper, a working generator or a supervisor on the plot when the work starts.
What do site overheads actually pay for?
Site overheads are the costs that keep a site running, separate from the permanent materials and labour in the measured works. They usually include the site supervisor and engineer, a store and its keeper, security, temporary water and power, toilets and welfare, small tools, and the standing time of plant between productive tasks. They also cover setting out, testing and the survey equipment that goes with it.
Water for mixing, curing and dust control and power for tools and lighting have to be planned for this site, not copied from another job. Then ask how materials will be stored and protected. If the estimator has never run a site here, these lines are easy to copy from an old project and never revisit.
How does the gap turn into an underfunded site?
The gap turns into an underfunded site when the overheads are priced from habit rather than from a programme for this job. An estimator who has managed a site knows that a generator needs fuel, servicing and a spare, that a store needs a keeper and a lockable door, and that curing water has to arrive every day. Someone pricing from a spreadsheet may list each item once and miss the quantities behind it.
Once work starts, the shortfall has to be absorbed somewhere. Supervision hours get cut, so the person checking reinforcement or concrete cover is part time. Plant stands idle because fuel or a spare part is not budgeted, and the programme slips. Security and stores get squeezed, and materials sit in the open. Check the rates against the bill of quantities and ask for the quantities behind the rates. A line reading "site establishment, lump sum" tells you nothing until it is tested against the access and drainage conditions the project programme identifies for the wet season, when haul routes and standing water can change the work.
How do you detect the gap before award?
You detect it by asking who priced the overheads and who has run a site of this size in Puntland. Request the CV of the proposed site manager and the storekeeper, and ask for two recent projects where that person held the same role. Then walk one of those sites, or ask for photographs and the site diary, and look at the store, the water arrangement and how plant is kept.
Ask how the bidder will supply water and power, and where materials will be stored. Ask which items are lump sums and which are measured. If the overheads are all lump sums with no quantities, ask for a breakdown. Confirm the testing and setting out equipment the bidder owns rather than hires, and ask how the bidder will replace or service that equipment on this site. Treat strong answers as claims to verify, not proof, and check the contract to see what the client can require once work begins.
What to do next
Take the overheads section of the bid and list every item with its quantity, rate and the months it covers. Ask the estimator to explain two lines you cannot trace to the programme, such as curing water or plant standing time. Then request one recent site reference and visit it. If the answers do not match the site, price the shortfall before you sign.
Frequently asked questions
What counts as site overheads on a Bosaso bid?
Supervision, stores and security, temporary water and power, welfare, small tools, setting out, testing and plant standing time. The exact list depends on the contract, so check what the specification and bill of quantities include.
Can a low overheads figure be corrected after award?
Only if the contract allows it. Check the contract terms before award and ask the client's engineer which items can be re-measured or varied later.
Local reporting: this article is written for building work in Bosaso and Puntland. Ground conditions, prices and rules differ between places; confirm the details for your own site.