GUIDE TO MAKING BASIC CONSTRUCTION WORKS ESTIMATE
For construction projects, whether large or small, private or public, before starting the implementation stage, the construction estimate stage is extremely necessary and important. Because this is the basis to help you evaluate the cost so that it is most suitable for the budget for the project. In the article below, we will guide you on how to make a basic construction estimate so that you know how to apply it to your future projects!
1. What is construction estimate?
The project estimate is the total cost required to construct the project. It is a projected calculation of the project value before construction. The project estimate is prepared based on the volume of work determined in accordance with the technical design, construction drawings and other requirements for the work to be performed in the project.
The project estimate is considered an important document, closely linked to the design drawings to provide information on construction costs. Usually, the project estimate is prepared for the following main purposes:
- Estimated amount of money needed to pay to obtain the desired project item.
- Basis for reviewing and selecting contractors.
- Basis for making investment plans, convincing investment banks to provide capital.
- Basis for negotiating and signing contracts.
2. Basis for establishing unit price of construction works
- List of construction works of the project that need to establish unit prices.
- Construction cost estimates according to the list that needs to establish unit prices.
- Material prices (excluding VAT) to the construction site.
- Labor prices of the project.
- Construction machinery and equipment prices (or rental prices of construction machinery and equipment).
Legal basis and instructions for making estimates according to the method of establishing unit prices for construction works, you can refer to the Method of establishing construction prices (Attached to Circular 06/2016/TT-BXD dated March 10, 2016 of the Ministry of Construction).
3. Construction project budgeting guide
You can make a construction estimate based on some of the following suggestions:
- Applying construction estimate norms - Including 5 parts according to Circular No. 10/2019/TT-BXD of the Ministry of Construction.
- Using labor prices and machine shift prices issued in Circular No. 15/2019/TT-BXD dated December 26, 2019 of the Ministry of Construction guiding the determination of construction labor unit prices.
3.1 Direct costs
Including material costs, labor costs and construction equipment costs.
Material costs:
- Based on the norms for using materials and material prices in each location to determine material costs in the basic construction unit price (unit prices of provinces, cities or construction unit prices).
- Material costs in construction estimates are determined by multiplying the approved design construction volume (X) by the material costs in the basic construction unit price of each type of construction work. When there are changes in prices and transportation costs, the difference is determined based on the average regional price in each period and included directly in the material costs in the estimate.
Labor costs:
In the construction estimate, in principle, labor costs include basic wages and all additional wages, salary allowances and expenses according to the regime for construction workers that can be directly assigned to workers to calculate for a standard working day. According to this principle, labor costs in the basic construction unit price are determined as follows:
- For the unit price of provinces and cities, because it is applied to many projects in an area, only basic wages, additional wages, salary allowances applied uniformly to all projects in the area and expenses according to the regime for construction workers that can be directly assigned to workers are calculated. According to current regulations, these expenses are twice the labor costs in the current basic construction unit price of localities. In particular, some projects are entitled to higher allowances (mobile) or other allowances not included in the labor costs in the local unit price (such as: area, attraction, toxicity, seniority, responsibility, working at height, 3 consecutive shifts, etc.), then these allowances are added to the labor costs according to the instructions in Appendix 2.
- For project unit prices: directly include; basic salaries, additional salaries, salary allowances; and the regimes for construction workers that the project is entitled to according to the above calculation.
Construction machinery costs:
- While the machine shift price list has not been adjusted according to the current price level; and the salary of machine operators according to the above principles; temporarily apply the current machine shift price list and adjust with a coefficient of 1.05.
3.2 General costs
In the construction estimate, in addition to direct costs, all other costs include; other direct costs, management costs, social insurance; union contributions, worker service costs; and other costs previously included in construction surcharges; now calculated as a common cost by a percentage (%); compared to direct costs (including materials, labor, construction machinery).
3.3 Standard profit
Temporarily apply the current regime to the subjects according to the regulations; of the Ministry of Finance until the implementation of the new tax policy.
This construction estimate does not include bank loan interest expenses. The guarantee of construction capital is agreed upon by A-B; and recorded in the economic contract depending on the specific conditions of each project.
4. Introducing a reputable design & construction consulting service provider
The importance of construction units is undeniable, their reputation will ensure the quality and aesthetics of your project. Currently, there are many units providing design and construction services to meet the increasing construction needs in our country. Therefore, finding a reputable unit is not easy and requires you to spend time researching. In the selection process, you need to research carefully and ensure that the accompanying unit must have high expertise, many years of experience, have a clearly signed contract, transparent costs, ... To help customers save time searching, Hung Nghiep Phu Construction Investment Co., Ltd. is confident that it will be the best choice for you.
Hung Nghiep Phu Construction Investment Co., Ltd. with the mission of providing the best solutions and services, building a prosperous community with customers, Hung Nghiep Phu is gradually affirming its brand through sincere cooperation, with a leadership team with ethical capacity, creativity, high expertise and strategic vision. Hung Nghiep Phu owns a team of skilled, highly qualified employees who will bring customers the best quality technology.
Hung Nghiep Phu Construction Investment Co., Ltd. - specializes in constructing civil and industrial works. We look forward to accompanying customers in construction projects as well as continuous procedures such as planning diagrams, applying for construction permits, completing procedures, applying for fire prevention and fighting certificates, ... If you have any questions or are in need of design, completing procedures, please contact us immediately for free consultation!
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Source: Compiled from the Internet
