Planned savings are Definition, meaning and characteristics

2024 Author: Henry Conors | [email protected]. Last modified: 2024-02-12 02:53

The largest place in the overall structure is occupied by direct costs, which are calculated by taking into account the norms and existing prices, as well as the volume of construction work performed. Planned accumulation is a rather important component of the whole process, since it performs a number of tasks, without which it is impossible to imagine the modern construction process. In the final calculation, the planned profit helps to make it the most accurate and correct.

Planned savings are…

The estimated cost contains three components:

• Direct costs are costs that are directly related to the manufacture of materials, which may include the cost.
• Planned savings are estimated profits.
• Overhead costs - include those costs that are incurred as a result of the work.

Estimated profit or planned savings imply real profit, which is taken into account when choosing the price of all products for construction.

The indicated norms when calculating planned savings are calculated as a percentage inaccording to the cost of building materials. As a rule, it is about 10%.

Special attention is paid to the estimated price of the object. It has already been drawn up taking into account the price, which includes planned savings, that is, all technical equipment, various furniture and materials, and also includes payment for all installation work carried out. There are also other components that the appraiser also pays attention to.

What to look out for?

It is important to distinguish when evaluating structures that were built before and after 1991. This is necessary, since buildings built before 1991 had a different cost, since the percentage of planned savings, overhead costs and other expenses - all this had a different price than today. It is necessary to recalculate and display the cost, which will be loyal to everyone and will not depreciate expensive building materials.

Existing regulations

Planned accumulation is a concept that has its own elements and norms. The norm is established for all existing types of construction work and installation. The approximate percentage of direct expenses and other expenses is 6%.

The rate of planned savings remains the standard for any type of work, as well as for people involved in it. Subtract the rate as a percentage of the price of direct and overhead costs.

What is a correct and incorrect definition?

Planned accumulation is an important definition that helps in construction to deduct all the costs incurred very accurately and correctly, and also with their help you can do an analysis based on the results obtained. Despite the fact that the concept has many positive aspects, it is still perceived with skepticism, since the existing norms cannot give one hundred percent statement about the self-sufficiency of all organizations in construction.

If the planned costs decrease or, on the contrary, increase, then this should all be taken into account at the moment when the cost of the work performed is fully calculated. The process of downgrading or raising is due to the differentiation of existing spending.

Organizations engaged in construction and installation, in the case when they have a level much lower than the norm, may face serious problems. If a company is going to change equipment or switch to a new system, then often it does not work out, because there are very few funds and they cannot create various funds that stimulate the flow of finance. The only thing that is available to them is an increase in the profit plan, and this happens not only during the modernization of production, but also in the subsequent period. Moreover, all the profits received will be defective for a certain time. After all, part of it will be transferred to different funds.

Main points in the concept of "planned savings"

As already noted, the existing and current norm of planned savings in relation to all types of workis 6% of direct and overhead costs.

All established norms for invoices or warehouse, procurement resources, for planned accumulations are indicated by a separate decree. It is called "Building Norms and Rules" (SNiP, part 4).

From the resolution it can be seen that the estimates may include planned savings, direct costs and overheads, which are a mandatory component for further income generation in organizations.

Norms of planned savings, as well as administrative expenses of any type, have a special place among the general overhead limit. Also, these components are usually installed separately from others. They are counted as a percentage. Planned savings - this is what is necessarily included in the estimate, and they differ significantly from the actual expenses, which contain all the costs incurred in the process of work.

Moreover, various equipment and materials that need to be assembled, as well as equipment and inventory that do not need such a procedure, can be indicated as stocks. They are subject to instant payment, which is made from the accounts of capital construction. In this case, such payments are considered elements of funds.

Construction organizations set themselves many goals that, one way or another, affect the financial sector. They do their best to get the job done quickly and efficiently, or to keep the cost down. This will lead to a serious increase in the efficiency of all capital investments. Employees also try to do their job in such a way thatfunds were distributed correctly among all branches. Various banks or finance firms directly participate in the work of construction and installation companies, which monitor the correct distribution of all received funds allocated to construction companies to improve the quality of work.

Accrual order

The procedure for calculating all existing expenses and estimated profits includes a sequence of actions. Initially, expenses on invoices are charged for the main expenses and expenses, after which savings are charged for the resulting price. To make the process not so long and tiring, experienced workers use a special coefficient. It applies to basic expenses. It can be obtained by multiplying the overhead rate and the estimated profit rate.

Thus, the final amount is the most correct. The main thing is not to make mistakes in all calculations, as well as to prescribe the correct planned savings and expenses incurred.