Technical and economic indicators of the project: concept, types, structure, calculations and development of estimate documentation

2024 Author: Henry Conors | [email protected]. Last modified: 2024-02-12 02:54

Pricing is considered to be the most important direction of economic activity in the enterprise. The volume of products sold, the profitability of the ongoing production and the financial result of the activity depend on the adequacy of the established prices. And as a natural result - the competitiveness of the enterprise.

Introduction

Technical and economic indicators of a production project (works/services/construction/investment and so on) reflect such pricing factors as cost dynamics, inflation, market monopolization, labor productivity indicators, supply and demand ratio, as well as a number of others. In order not to beat around the bush, a specific option will be chosen, on the basis of which the consideration of this topic will be carried out. This is construction.

What do we have?

Pricing inconstruction is characterized by individuality. Thus, the prices of certain types of products are determined on the basis of estimates. At the same time, natural and climatic factors, regional differences, different economic conditions, and features of specific types of nomenclature are taken into account. The adopted norms, methods and conditions of work have an additional influence. The technical and economic indicators of the construction project are evaluated by the customer and the contractor during the conclusion of the contract and its subsequent execution. What does this process look like? First, the customer develops indicative documents. They are necessary in order to conduct a preliminary assessment of the cost of building an object at various stages. Used to justify an offer at a contract price by a contractor calculating a construction product value.

Influencing factors

The calculation of the technical and economic indicators of the project should provide for all the important points. After all, on their basis, economic accounting, reporting, and performance evaluation will be carried out. The structure of the document should provide for the allocation of cost groups with an indication of the value of their share. A system of current indices is used to estimate the cost. Overhead costs, direct costs and profits should be taken into account. At the same time, it is also necessary to ensure that the required parameters are achieved. Without them, it will not be possible to develop adequate estimate documentation for construction.

Direct costs

These include the wages of workers,the cost of materials, structures and parts, the cost of operating the construction machines and mechanisms used. It is from them that the main item of expenditure is formed in the implementation of construction and installation works. Workers' wages include wages and the provision of support services to support operations.

The next item to mention is materials. Under their cost understand the costs of their acquisition, procurement, delivery, unloading and storage. The same applies to parts, semi-finished products, products and structures that are needed for construction and installation work. Their price is the basis of the selling price, transportation costs, margins of supply and marketing structures and procurement and storage costs.

And the third component is the cost of operating equipment and construction vehicles. In this case, there is a specificity. Thus, costs are determined using a unit such as machine hours. This indicator is usually calculated by calculation. What is included in the car hour? Delivery of an object to a construction site, moving between them, depreciation, installation or dismantling, wages of specialized and maintenance personnel, repairs, expenses for electricity, fuels and lubricants and a number of other items. Here are the first technical and economic indicators of the project.

Overheads

They are provided in order to cover the costs associated with the organization and management of the processerection of an object, provision of necessary conditions, maintenance of construction and installation activities. Overhead costs are part of the cost. Conventionally, they can be divided into four components:

1. Administrative expenses. They mean the remuneration of engineering and technical workers and junior service personnel, stationery, postal and telephone and travel expenses. They also include contributions to social needs, payment for audit and consulting services and all other expenses associated with the conduct of administrative and economic activities.
2. Spending on servicing workers directly involved in construction, retraining of personnel, safety and labor protection, provision of living and sanitary conditions, medical and social insurance.
3. Expenses for the preparation and organization of work carried out at construction sites, which include the cost of maintaining a watchdog and fire department, maintaining laboratories, developing projects, landscaping the site and maintaining it in proper condition.
4. Other overheads, which include property insurance, advertising, bank loan payments and the like.

(estimated) profit

This means deductions of funds that will be directed to material incentives and development of the enterprise. This group of technical and economic indicators of the project is determined as a percentage. into herequipment modernization, income tax expenses, financial assistance, social development, employee incentives, partial replenishment of working capital, reconstruction of fixed assets.

Specific profit estimates

Pricing system includes:

1. Estimated rationing. This implies a system of technical, economic and organizational methods for determining the necessary time, labor and material and labor resources for the implementation of certain construction and installation works.
2. Estimated rate. This is a combination of the time of operation of machines and mechanisms, the labor of workers, materials, structures and products that are needed for a certain amount of construction and installation work.
3. Estimated standard. This is a collection containing the requirements for the implementation of construction and installation works. This is the primary document for developing unit rates.

Here are the main technical and economic indicators of the project.

Paperwork

The technical and economic indicators of the planning project for the future structure are contained in the business plan and cost estimates. It is according to the figures available in them that economic efficiency, expected income and expenses, various opportunities and specific aspects, the analyzed return on investment and net profit are determined. Key points to be covered in documentation:

1. The procedure for developing approvals,approval of justifications for investments, composition and evaluation of their effectiveness; stages of design preparation for the construction of structures.
2. The procedure for the creation, development, approval and subsequent approval of project documentation, its composition and content, specific technical and economic indicators, tariff regulation.
3. Composition of the rules.

Species diversity documentation

Depending on what technical and economic indicators of the investment project are considered, they can stand out:

1. Local estimates. These are primary documents. Compiled for individual types of work and consider the costs of general site works or buildings.
2. Local cost estimate. This document is drawn up in cases where the amount of costs and the scope of work are not fully determined and they need to be clarified on the basis of the working documentation.
3. Object estimates. Combine the cost of work at the facility. Compiled on the basis of local estimates. Refers to the number of documents on the basis of which the contract prices are formed.
4. Estimated calculations compiled for certain types of costs. Their creation is envisaged in cases where it is necessary to determine, on the whole for the entire construction, the maximum funds that are needed in order to reimburse the costs that were not taken into account by the standards.
5. Consolidated cost estimate. Summarizes the reviewed documents.

How do you calculate all this?

In this matter, a number ofmethods. Each of them has its own specifics, which allows you to evaluate the technical and economic performance of the project and see if something can be improved somewhere.

1. Resource method. It allows you to very accurately determine the estimated cost of the necessary construction products for any period of time. Thanks to this method, you can even take into account the additional costs that will be needed during the construction of the object. It can be used at any stage in the preparation of design estimates. But there is also a drawback here - very time-consuming and voluminous construction documentation.
2. Resource-index method. Actively uses monthly data from pricing centers in construction.
3. Basic-index method. It involves the use of a system of forecast and current indicators in relation to the cost in the initial period of time. Its use allows you to limit spending at the level of average regional spending.
4. Analogue method. It is used exclusively if there is a data bank that contains information about previously built (designed) objects that are similar to the current one.

Conclusion

The article analyzed the technical and economic indicators of projects, as they are used in practice in the implementation of real activities. Of course, knowing only the information provided is not enough to win the pricing race and gain a foothold in the construction services market. But consider this data as a first step towardsthis position is quite possible.