Resource Estimation Method: Description, Features and Example

The planned cost when performing any work is laid down in the estimates. Incorrectly drafted, from a legal point of view, the document will not be accepted for consideration. If economic errors are made, then the actual value of the object will be very different from the estimated one . What methods are used to calculate the cost of work?

A bit of history

In 2008, the government of the Russian Federation approved the requirements for the preparation of project documentation. Then the resource and basic index methods of budgeting were legalized. Later, other costing methods were developed and implemented. Let's consider them in more detail.

Basic method

It provides for the use of norms (FER, TER ) at forecast prices, taking into account indices. The reduction of costs is carried out by multiplying the cost items by the corresponding index (rate). The basic method determines the current value of the work.

Rates may be multiplied by:

• The estimate as a whole. This method is used to determine one type of work.
• For each item of expenditure. If the estimate consists of several stages (repair, installation, etc.), then a separate index is applied to each type of work.
• To direct cost items. The rate applies to each rate item. The results are then summarized to determine the total cost of the estimate.

Estimate = (salary x tariff + operation of cars x tariff + materials x tariff) x amount of work.

This technique allows you to approximately calculate the construction prices on average for the region, since the cost of resources is determined by the results of the monthly calculation of weighted average prices carried out by the CCC at the regional level. This technique allows investors to focus on reasonable expenses.

Other methods

The resource method of budgeting provides for the calculation of resources at current prices and tariffs. The calculation is based on the needs of materials, the costs of delivery and installation of equipment.

Resource-index method of budgeting is used in construction. It is a combination of a resource method and an index system. It was developed in the early 90s of the last century with the aim of planning in the face of inflation. Its advantage is the correct calculation of the cost of work and the ability to use real prices. Due to the high complexity, this method is less popular than the basic one.

In the method of strengthened standards, data from previous similar projects are taken as the basis for calculations .

If the compensation method is applied, then the price of work, calculated in basic prices, includes the additional costs associated with changes in resource tariffs. These costs are specified in the design and construction process. The customer compensates all the actual costs of the contractors, provided that they are confirmed. These include:

• overspended materials;
• low labor productivity;
• intermediary services.

This method does not allow you to compare prices with optimal (average on the market). The contractor will benefit from an object with high material consumption. He will have no desire to use new equipment, progressive methods of construction.

Resource Estimation Method: Description

The calculation is carried out at current prices of the cost elements necessary for the implementation of the project. When calculating the cost of resources, logistic information (distance and methods of delivery of materials), energy consumption, equipment operating time are taken into account.

In the calculation process, the following indicators are highlighted:

• the complexity of the work (person - h ) required to determine the size of wages;
• number of hours of equipment operation;
• expendable materials.

Calculation is carried out according to the specification of products and parts - statements, which indicates the rate of use of the resource for the manufacture of a unit of production. The resource method of compiling local estimates is based on the real cost of materials. Despite the high accuracy of the calculations , this method is rarely used because of the large amount of time required for the calculation. In addition, it is very difficult to justify the market price of a resource.

The classic resource method of budgeting involves the calculation of the following formula:

Cost = labor input x cost per person / hour + number of machines / hour x cost of machines / hour + number of materials x cost.

Advantages and disadvantages

The issue of estimated pricing in construction has always been taken seriously . An increase in requirements on the part of investors, especially government customers, for the quality of documentation and accuracy of calculations has led to the fact that in practice the resource method of making estimates has increasingly been used. Since the current price level is used in the calculation process , the main principle of the state pricing policy is implemented - the formation of the necessary costs. This method has established itself as the most active and agile. The customer can see the actual cost of all types of work. You can always evaluate the impact of certain design decisions.

The state customer can use the resource-based budgeting method to:

• determine the economically reasonable cost of work;
• calculate the initial price of the state contract for the auction by placing quotes;
• Find suppliers, developers and contractors who are ready to fulfill the order at the market price faster.

Resource Estimation Method: Example

The table below presents the initial data and the calculation algorithm.

Overhead costs, payroll expenses and estimated profits can be divided separately for each type of work.

Where to get data?

The resource-index method of estimating, an example of which was presented earlier, is used at all stages of design. In the process of developing working documentation and the project, the method of strengthened standards is additionally used.

The estimate is compiled according to the following data :

• list of necessary materials;
• list of necessary work;
• expenses for the payment of staff services;
• equipment operating costs;
• regulatory profit.

The data of the first three paragraphs are entered in the process of compiling project documentation. The remaining cost items are calculated according to fixed and variable costs . Material prices include purchase costs from suppliers, as well as logistics services. Resources are determined according to the collections of GESN- 2001.

As additional sources of information, you can use the local statement (form No. 5). It calculates the need for labor costs (person / h ), time to use mechanisms (machine / h ), material consumption (in physical meters). According to the prices of resources, the cost of direct costs in the forecast period is calculated.

Price for government orders

The initial state contract price for auctions is calculated by the customer according to the approved project documentation. The customer sends the calculated estimate for examination. The checking organization according to estimates and current prices as of the date of preparation of the document verifies the compliance of the calculated cost with current standards. Based on the results of the audit, a conclusion is issued on the total cost of the object, calculated at basic prices and at the time of the preparation of the estimate.

The initial price of the contract is translated into the inflation index. Indices are developed by the Ministry of Economy of the Russian Federation by industry. The final decision is made out by the protocol of the initial price and approved by the customer. The latter can independently calculate the costs of building the facility using the resource method. If a significant difference between the results of calculations by resource and index methods is determined, the customer can contact the investor for approval of an individual index.