Pricing in construction

All construction projects differ from each other in the area of ​​erection, the number of storeys used in the construction of materials and also on structural elements. This applies equally to objects that are built on standard projects, since the construction of each such object depends, in part, on the conditions of the locality to which they are attached. This applies even more to objects built on individual projects. From all the above, it is entirely possible to come to the conclusion that absolutely every building or building has its own individual value and requires absolutely different costs.

In contrast to industry, in the construction of prices are usually installed on the finished elements of structures or on certain types of construction and installation work, and not at finished objects or on separate structures. Such a policy is conditioned by the fact that several subcontracting and contracting highly specialized companies, whose products are not the final goods offered for sale, but a number of construction and installation works that they are carrying out, can work at the construction of the facility above the facility. Of course, at the same time, the price for the finished object, consists of the cost of the works performed, as well as the cost of individual structures.

Significant impact on the pricing of construction and installation work is also provided by the equipment and technologies used in the construction. That is why the cost of the same construction and installation work for various construction companies can be completely different. In determining the exact cost of works, at the initial stages of design, standard pricing is laid that take into account the situation with the level of construction market prices at the current moment of construction, the cost of popular construction technologies, and the current level of wages.

Any construction is allocated a very long production cycle. Therefore, the project price may not always coincide with the actual price, especially it is actual in the conditions of inflation. All this forces the builder’s company to take into account the time factor in the formation of construction costs.

Construction products in the modern world has a high material consumption and is characterized by considerable labor costs. At the same time, the price in construction is formed not from the real cost of materials, but from the estimated price. At the same time, prices for component types of construction and installation work do not reflect the real level of costs for the purchase of building materials, as well as other resources. Therefore, it is extremely necessary to systematically monitor prices for labor resources and building materials and to catch in time how their change can affect the cost of construction.

The formation of prices in construction is realized by the customer, the designer and the contractor. Each of them pursues its commercial goals. Therefore, the final cost for construction products is, in fact, a compromise price between all subjects and objects of construction.

Classification of pricing in construction can be based on the number of direct costs, overhead costs, planned savings, on costs and profits, as well as on the application of prices in construction and construction.

Direct costs are formed from the cost of construction materials required for a particular type of construction and installation work, wages that are paid to the construction worker and the costs necessary for the proper operation of the construction machinery and machines that will be used in performing any construction or installation work.

Direct costs are associated with the implementation of a variety of construction or installation work at the construction site. In particular, such costs include the wages of workers, all costs for the purchase of building materials and installation of structures. And also the costs related to the operation of construction machinery and construction machinery.

Expenses related to the operation of machines and mechanisms used in construction and repair include the costs of their loading, transportation, unloading, installation, and dismantling. The costs also include rearrangement of machines on the construction site, and their maintenance, energy costs, or fuel and wages of the drivers.

The remaining direct costs are due to transportation of excess soil, removal of garbage, land and snow from the construction site. The amount of costs depends entirely on the materials, mechanisms and structures used, as well as the type of work performed. In general, expenses consist of a salary, its share is 15-20%, of materials and structures, their share is 60-70%, plus the operation of various mechanisms of construction machinery, its share is 10-15%, 1-5% are other expenses from of the total expenditure.

Then there are overhead costs not directly related to the creation of construction products, but supporting the conditions of construction, the work of the company, management and maintenance personnel. Such expenses include the maintenance of repair, as well as warehouse bases, engineering and technical personnel, as well as administrative and management personnel.

Unlike direct costs, overhead costs are not associated with the creation or installation of individual structures or with certain types of construction work.

This type of expenditure does not give an increase in the amount of work performed, but it contributes to this indirectly.

To the overhead costs can be attributed the costs of the organization of construction processes, their maintenance, as well as management of these processes as a whole. The overhead costs include the following costs: The administrative and administrative costs of the construction company, the costs of servicing the workers, the additional wages for builders and production workers, in particular is the payment of work outages due to weather conditions. Additional payment to brigade leaders for the management of brigade work, payment of vacations, deductions to workers’ social insurance accounts, payment for fire and guard building maintenance, costs for recruiting workers, operating and maintaining production equipment and construction equipment, as well as for the improvement of construction sites and preparation of construction sites for delivery.

Overheads are calculated from the percentage of the total direct costs that range from 12 to 23%. The established norms of overhead costs for installation work contain only percentages of the basic wages of workers included in direct costs.

Reducing the time allotted for construction leads to savings in overhead costs, which include administrative and business costs, the costs of wearing temporary equipment and structures, the costs of maintaining guard and fire protection, and the costs of maintaining project teams. The share of such costs is 50% of the overhead costs for civil works and 30% of the costs for specialized companies. Reduction of labor costs for construction saves about 6-15 rubles per hour per day. These standards are determined by the relevant ministries. In addition, overhead costs account for 15% of the amount of wages in direct costs and are taken into account when saving costs.