Checking construction estimates. Verification of budget documentation in Russia
CHECKING ESTIMATES
Specialists of our company are offered estimate verification services for any kind construction, repair, installation, commissioning and design and survey works, regardless of the type of object, whether apartments, houses, offices, enterprises, and internal and external engineering systems.
Note: the word “designer” used in the study is synonymous with the construction contractor due to the fact that in the Law on Building Law the term “designer” is used in the Law on Construction, while the Civil Code and the Law on Public Procurement are called "Contractor."
What is the investment value estimate? The estimated cost of investments is used to estimate the cost of construction work in government contracts. Please pay attention to the emphasis - values, not prices, because the price will be offered only by the bidder. In principle, this estimate represents information on the estimated cost of construction work. It also serves as the basis for the analysis of tender proposals submitted for price proposals by potential contractors. A very important component in assessing the value of an investor is the diligent performance of work submitted to bidders.
Checking estimates can be carried out in any standards: TSN, FER, TER, HESN, housing and communal services, aircraft, commercial and general market prices.
PRICES FOR CHECKING ESTIMATES in our company an average of 0.2% of the estimated cost received. However, we evaluate our work on checking estimates depending on the complexity and most often the cost may be lower than 0.2%, for more details about our prices, see the PRICES page.
What is the assessment of investments and what is the difference between the assessment of investment value? The estimated cost of investments is the total cost of planned investments in construction, otherwise it is the sum of all expenses planned by the state investor for investments. Group 6 - Equipment, group 7 - Preparatory work, design, investor services and possible training and commissioning.
What are the legal grounds for costing in government orders? Normative act of a high level. In this law, the estimated cost of investments is considered solely by Article 35, which states: The contracting organization is obligated in relation to construction work to have documentation indicating the subject of the tender and assessing the investment value. Legislative acts.
WORK TIME OF OUR EXPERTS: on weekdays and WEEKENDS and HOLIDAYS from early morning until late evening, and in case of serious need, even ALL-HOUR!
CALL for clarification of the cost of checking the estimate documentation for any types of work and other issues at the numbers indicated on the CONTACTS page.
The above Regulation introduces an obligation to apply: Appendix 1 Cost Estimates in kind, Appendix 2, Unit Price, Appendix No. 3 to factors of production. Please note that the prices indicated in Appendices 2 and 3 are official prices.
For the reader’s convenience, the regulation referred to in paragraph 1 is hereinafter referred to as the “methodology”, and the regulation referred to in paragraph 2 is referred to as the “toolbox”. What calculation method should be used in calculating the value of the investor? This issue is regulated in § 3, subparagraph 1, which states: investment value is calculated using a simplified calculation method. Clause 2 states that only if there is no basis for calculating estimates using the simplified calculation method, it is calculated using the detailed calculation method.
General reference on the topic:
Check estimates.
Cost analysis is a very important part of the contractor-customer interaction process. After all, the process of construction and installation work itself cannot be planned in advance at 100%, and therefore the initial cost indicated in the estimate should also change after changes in the work done. In addition, quite often, unfortunately, the customer (rarely the contractor) pays little attention to checking the budget documentation at the initial stage before starting work (if at all), hoping for the integrity of the contractor or the Russian "maybe". As a result of such carelessness, after some time it turns out that the contractor invoices the customer to pay for his services much more than the amounts that they cost, including a lot of what he did not do and the cost of materials that are much higher than the average market prices.
In other words, the basic principle arising from the "methodological" regulation is. There is no free choice of method, because the choice of method was determined by the minister in regulation! Of course, due to technological progress and a variety of design decisions, it is very rarely possible to make a complete estimate based on prices from the limited contents of the Appendix. Most often, we are forced to supplement the cost estimates with detailed calculations based on the norms in Appendix 1 and unit prices. Factors of construction production are given in Appendix No. 3.
The optimal algorithm of the contractor and customer is as follows:
Drawing up a statement of the scope of work, with mandatory approval and approval by the customer and contractor;
Drawing up budget documentation on this sheet by the contractor and submitting it to the customer for approval;
Verification and approval of estimates by the customer;
In this situation, an assessment is made in which only part of the element is calculated by the simplified method, and the rest by the detailed method. What catalogs do you use when calculating investor expenses? First of all, the Estimates of the norms of expenditures listed in Appendix No. 1.
What product price ratios should be used in assessing investment costs if they are not in Appendix 3? In the absence of the price of searching for factors of production in Appendix 3, please refer to the price list of manufacturers of materials or suppliers and the price list of suppliers of services, hardware and transport bases, as well as the purchase price in accordance with individual calculations in the absence of prices determined in accordance with the paragraph. formal, introducing a different than described above, and we do not hide that this is the best way to continue.
Acceptance of work by the customer in accordance with the bill of quantities and estimates (if necessary, estimates are adjusted) based on the Act on acceptance of work performed in the form of KS-2;
Payment for work performed according to the certificate of cost of work performed in the form of KS-3.
Regulation does not allow the use of average prices, etc. from price quotes of companies engaged in the development of prices of factors of production. Similarly, investors, who make up 10% of the site, can easily see whether the prices indicated in the calculation are actually market prices, and they themselves find suppliers and order materials for the construction site. The service allows you to access the current trading offer of specific manufacturers and suppliers.
You can search for suppliers located in the closest area of \u200b\u200byour investment, send automatic email inquiries and quickly compare offers received. What is included in the cost estimate? The calculation structure for simplified calculation is given in § 4.
Checking the estimates (analysis of estimates) at the initial stage before starting work will significantly reduce the expenditure of funds (any contractor pays a minimum of 30% overpricing for their services). Verification (analysis) of budget documentation (which may change) during the work process will eliminate unnecessary over-expenditure of funds for the purchase of additional materials and unnecessary work. Even in the most neglected case, when estimates were not drawn up and were not checked at all, checking the estimates can significantly save money by sequentially restoring the entire process of work from scratch, but it is much more difficult in terms of labor and will have to say goodbye to some money (for services on production of control measurements, part of the overestimation of the volume of work that is already impossible to verify, etc.).
A detailed calculation formula is given in § 1. From the foregoing, it is clear that the calculation of the unit price of the valuation element is simply included in the calculation formula. In computerized quotation programs, it suffices to mention one of the methods for calculating the investor's cost estimate for public order, obtaining accurate calculations and printouts.
Selection of costing type. What overhead should be used in calculating the value of the investor? Overhead costs range from "to." We explain that there are no official rules on how to choose overhead from given intervals. In this situation, the choice is made by the investor or directly estimated costs.
Thus, checking the estimate will save you from many unpleasant surprises, such as:
Overestimation of the volume of work performed;
Exclusion of the cost of works that are not actually done (for example, hidden work);
Exclusion of duplicate quotations and works;
Overpricing of materials and equipment, etc.
In accordance with the foregoing, one important conclusion can be made: the sooner the customer (or contractor) starts checking the estimates himself or entrusts checking the estimates professional estimate engineers, the more he will save money and time. Thus, the analysis of estimates for construction and installation works will allow the most optimal use of material resources.
Repairing an apartment or house is an extremely difficult issue. Renovations are always preceded by the search for the right architect, construction team and materials. However, only during the upgrade process are there many problems that can lead us to balance.
Try checking the selected construction team
How to ensure good relations at the construction site, how to set the price and negotiate with the construction team. There is a lot of continuous construction in the construction industry. Fixed teams and installers try to keep up with their reviews. The market has changed - the role of the client has increased. Just go to various construction or social forums to find out which strengths express dissatisfied opinions. One client today has an effective weapon for companies and contractors - the Internet.
Analysis of budget documentation is an important stage in the relationship between the contractor and the customer. And in these relationships, a considerable role is played by the rationality of the money spent on the construction site. It is in the customer’s interests to make sure that the estimate is drawn up correctly, the prices correspond to the real market prices, and the volume of work is not overstated.
Unfortunately, in the industry of artists and performers there are a lot of people who are even engaged in what they cannot do. They are moving from construction to construction without a reputation. There is not much to lose, and much to earn and spoil. In view of such threats, investor strength is a methodology of behavior. Even the cheapest should indicate the addresses of their previous sites. You need to know the opinions of former customers. A good way is to use the recommended command. Worse is the adoption of a word.
Try to negotiate a price
The contractor usually requires more for his work than he or she expects, and the investor usually requires a lower price. We are negotiating how not a big reduction in labor costs is additional work or other benefits. The answer may be to assess how much the contractor wishes to make concessions in order to make less concession. The performer is better prepared. His life ended at work and price negotiations.
An experienced builder knows that in practice there are no perfectly matching prices according to the estimates and according to the results of primary accounting documents (invoices for materials, operation of machines, paid wages). The purpose of the audit is to identify unjustified overstatement of estimated prices.
What mistakes does the contractor make in the budget documents?
When checking construction estimates, it is often observed:
Sign a contract, first contact another specialist
Each contractor or contractor must sign a contract. In the beginning, let's avoid some dangers. As a rule, the contractor complains about his predecessors and minimizes responsibility for his work. The agreement is best to include a note that he was familiar with the state of construction and no comments. Often, the performer discovers after the time when the robots have more than he appreciated. However, you cannot agree. After that, a contract was signed to determine the amount of work and payment at the beginning.
Any contractor seeks to do the job with maximum profit, so in practice often there is a deliberate overstatement of the cost of materials. After checking the accuracy of the estimated documentation, the customer can control the expenditure of funds for materials.
Errors in the calculation of the volume of work - this is, as a rule, incorrectly performed mathematical calculations, inattentive calculation of the volume of work based on the drawings. The design documentation provided with the estimate allows you to analyze the construction estimates for the reliability of the indicated volumes of work.
Worse, if an investor does his work under construction, it is raging. The agreement also protects against demand for advance payments for unpaid work. You must establish the principle of payment in stages - for the work performed. If you are building a house in a raw state, you need to divide it into stages. It is worth formalizing this mechanism and introducing a provision that the contractor represents robots for collection, and the investor has several days to submit his comments. If there are no corrections, payment usually occurs within seven days from the receipt of work.
Incorrectly applied quotes and correction factors in the estimate are often associated with the builder's ignorance of the construction technology. Drawing up budget documentation is office work outside the construction site, so the estimator may not know the conditions of work and make mistakes when applying correction factors to quotation quotes.
Use good building materials and don't order them too much
The investor pays for the material as soon as the team delivers the material and invoice. Investors who build a contract system remain well-chosen materials. So even our poor team can handle our home. From time to time, however, it turns out that our estimates of the materials we need to carry out the repairs were incorrect. To avoid this situation, before purchasing materials you should ask your resellers about the possibility of donating materials if you find that you did not use the materials that you purchased.
How are construction estimates checked?
If the customer is interested in saving his money and spending it right, he can resort to the help of an independent organization that will check the estimated prices. When checking local estimates, a professional estimate engineer works in a special program that allows you to divide the estimated price into its component parts (cost of materials, wages, machine operation, overhead, estimated profit) and analyze possible savings.
Most often, after repair we get individual plates, which we buy “in the store”, keeping them at home, does not make much sense, therefore it is important to store all receipts in stores, because they are a guarantee of a complaint about the product. The investor must take care of respect in the eyes of the contractor. It will be easier to secure what you want from builders. Although she is building a house for the first time, she should look like a person who understands building rules. This is how the house should be built, was indicated in the project.
The quality of construction work is described in technical standards and conditions, but the general principle is that the accuracy of work increases with the progress of work. The investor must maintain control and energy of finishing work, which takes into account aesthetics. Then the vigilance and meticulousness of the homeowner at the highest price. However, often investors are already so finished that they only dream of completing the reconstruction.
Sometimes during construction, additional work that is not considered in the estimate comes to light, or there is a need to replace the work. In such cases, it is necessary to make estimates, therefore, technical control in the process and analysis of the implementation of estimates is very important. An independent organization will help the customer to follow the progress of construction work.
Checking Budget Estimates
Often for tenders it is necessary to check the budgeting of budget organizations. The budget estimate of budgetary institutions limits the customer's capabilities and requires the most economical approach to budgeting a budgetary organization. Checking the estimates of budgetary institutions is aimed at analyzing the prices of the materials used, identifying expensive positions, and finding possible ways to save. In addition, compliance with the requirements of sanitary and fire standards for the materials used is checked. In such cases, an analysis of the budgetary institution’s estimates helps to correctly repair the facility and put it into operation by the regulatory authorities.
Why is it worth ordering an estimate check with us?
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