We also charge such "preconstruction" costs to the job. What we have done over time is developed an estimate of what these costs average and actually include these in the budget so it is not a complete negative to the PM team. Depending on the size of the project you can also negotiate preconstruction agreements with the client where such costs are paid outside the prime contract and become a contract of their own. We prefer this as it allows us to separately track how much it actually costs to get the work. You usually still lose some money but it is isolated from the main job. Assuming these are cost plus jobs you want to get as liberal as possible definition of cost of work as possible to make sure such costs before a notice to proceed are allowed in the final cost reconciliation.
R. Patrick Lloyd | Chief Financial Officer Golden Construction, LLC 2212 First Avenue South Birmingham, AL 35233 www.goldenconstruction.com P. 205.327.6617 | C. 205.283.8936 | F. 205.327.6667