In order to conduct reliable and at the same time competent construction, it is important to strictly consider all expense items. For this, an operation such as the calculation of estimates is provided. Within the framework of this document, the essential tasks of construction as a whole are determined, and upcoming expenses are calculated. Thanks to this paper, you can reject unnecessary expenses in a timely manner. Therefore, it is important not only to make an estimate correctly, but also to approve and coordinate the paper in the established manner.
What is a construction estimate?
In general, the project estimate is a document where all the costs of it are combined in a detailed form in order to erect or repair a certain building. Both large and smallest expenses are indicated here. Mostly these are building materials with an indication of their cost, followed by costing. In addition, expenses related to the implementation of each of the stages of work are made on paper, even if their actual implementation is assigned to contracting organizations.
If you correctly prepare the document, observe the procedure for approving estimates and other essential details, inefficient finance costs are prevented. In addition, it is thanks to the estimate that the accounting of the remaining materials for future work from those that were previously purchased is greatly simplified.
Estimates and its features
The current legislation of the country in no way regulates the economic part of the paper. Nevertheless, it requires the organization to prepare a complete set of technical documents, which also includes an estimate. Experts are sure that depending on the work reflected in the estimate, it becomes possible to assess the quality of the work performed on the project. After all, the more high-quality materials will be purchased and hired by more skilled workers, the better the work will be done.
The activity of any modern construction company is impossible without budgeting. This document demonstrates where the funds were spent. Moreover, it is relevant both for large companies and for individuals. In each case, who agrees and who approves the estimate will depend on who takes part in the construction in the person of the customer and the contractor.
Essential points in the preparation of estimates
An investor can invest available financial resources only if there is a specific work plan. Moreover, special attention is paid to the planning stage, which eliminates unnecessary expenses in the future.
It is important to understand that full control is possible only when working on so-called local estimates. It reflects all the manipulations carried out by the contractor for which the money was allocated.
The main sections of the document
In accordance with the current rules and recommendations, the following sections are always present in each estimate for construction work :
- Overhead costs are expenses due to the organization of the process as such, including its maintenance and management.
- Direct costs - expenses that are necessary for the purchase of basic materials, the acquisition or rental of a tool and payment for work.
- Profit - it represents the compensation due to the contractor.
Each of the works should be tied to cost in order to quickly track financial expenses and evaluate the remaining amounts.
Budgeting plan
To figure out how to make a construction estimate, you need to initially prepare a plan.
The project is the main document on which they rely when forming estimates. The very first sheet of this document is the title page, which contains the basic data on the project, as well as the data of the people who sign the “agreed” and “approve” estimates. The remaining paragraphs of the document reflect information on the basic stages of the forthcoming work.
For the preparation of such paper requires a full amount of information. Including the necessary materials and a list of works, the need to attract special equipment and specialists of one or another profile.
The next paragraph of the plan for the preparation of the document is the calculation of the cost of each component, depending on the current standards and current prices.
Costing steps
After all the prices in the estimate become known, you can proceed directly to its preparation. The process involves several successive stages, namely:
- Determination of necessary expenses. In this paragraph, the stages of work are recorded and the upcoming expenses are correlated.
- Calculation of total costs. Here, the total cost of all work determined at the initial stage is calculated.
- Definition of remuneration. The final amount will depend on the calculation options - on an hourly or piece-rate option.
- The calculation of the costs associated with the procurement of materials , based on their required work volumes.
- Final assessment and adjustment of estimates.
According to the readiness of the document, it remains only to correctly figure out who agrees and who approves the estimate, and put the appropriate signatures of the responsible persons in the right places when it is agreed.
Varieties of estimates in modern construction
To date, several varieties of estimates have found practical application. Each of them has its own characteristics, which must be taken into account during the preparation of the document.
Local estimates
This paper is an estimate for installation or construction - at a certain stage. It reflects the necessary materials and other resources.
Usually, in the framework of a local estimate, information is reflected as the work is necessary - for each of the elements.
When working within the framework of one project on a number of buildings, it will be necessary to draw up such paper for each of them.
Object estimates
This document combines the available local type estimates. In it, you can find the total spending, as well as general limited investments, which include the required temporary construction and unforeseen expenses.
In the object budget for construction work, all expenses that occurred during the execution of work are indicated.
Occasionally, only local estimates are allowed. This is usually true for private construction.
According to the results of the finished estimates, an estimate is made, as well as a summary of all costs. Usually this also does not apply to working with individuals.
Features of budget estimates
The answer to the question of who agrees and who approves the estimate depends largely on its type. So, they work with budget documents when finances for the performance of work are allocated from the state. In this case, the following features are required:
- conducting an expert assessment with the participation of auditors representing the state side;
- clear regulation of the rules for preparing the necessary papers and conducting inspections;
- due to the peculiarities of budgetary organizations, estimates for them may not always apply the methods of conducting calculations to fully reflect the expenses that occur during the work.
Features of commercial estimates
Regardless of how the project is financed, an estimate is necessarily prepared for it to calculate upcoming investments.
If it is not intended to use budget funds, a number of concessions are allowed in terms of the preparation and execution of estimates. It is allowed to depart from the existing unified norms and regulations. The main advantage of this fact is that any calculation method suitable for a particular case can be applied if it fully reflects the phased and final cost of future construction.
Important details of the preparation of construction estimates
The most difficult thing is to prepare a construction estimate when the state acts in the person of the customer. Every detail is important here, including the timing of the construction.
The fact is that when information about an upcoming object is published on the corresponding portal, an estimate for it should already be prepared. This is required by law.
In private construction, estimates are no less in demand and necessary. Moreover, it is better to trust the training to experienced employees in this field, and not to small teams. The fact is that in the latter case, the risk of increasing the total cost of the work increases significantly, which can happen both with a random error and as a result of deliberate actions.
Each customer is interested in successfully building an object with minimal costs.
Who approves the design documents?
Regardless of the type of document and the features of its preparation, it is important to strictly abide by the rules. The most common question at this stage is who should approve the estimate: the customer or contractor? The answer to it is the same for all cases - only the construction customer or his main investor can approve the estimate, and the contractor is authorized to coordinate it.
Always approval of any project documentation in practice is quite a difficult and lengthy stage in its preparation. It is impossible to refuse it, since there are a number of rules for its approval, in accordance with which the preparation of a number of graphic and textual materials is required.
Current regulatory acts and legislation as a whole determine the procedure for the development of any project documentation, which at the final stage is certified by the customer’s signatures. It is important not to confuse who agrees and who approves the estimate. So, the approval of securities in any case lies with the contractor of future work. The customer can only familiarize themselves with the proposed data, make their own adjustments or finally approve the finished project.
In some cases, such a procedure as state examination must certainly precede the approval of estimates in conjunction with other project documentation. It is important to always strictly follow the established methodology for approving and coordinating any of the project documents.
If the facility is subject to certain special conditions, additional collection of signatures from representatives of relevant competent authorities will be required. If disputes arise, they can be resolved with the participation of the City Council.
Often when preparing estimates, it is assumed that an expert assessment will be performed. Moreover, only completely finished projects are sent to it, but not the individual stages of work on them.
In practice, it is the approval of all design documents for an object under construction, including estimates, if the state acts as the customer, is the most complex, lengthy and time-consuming manipulation.
How are construction estimates read?
If the estimate is made in accordance with all applicable rules and regulations, then with its reading there will be no problems. In practice, looking at the paper, a person will see a list of positions within the framework of a particular stage of work, opposite which the necessary material, its required volume and the cost of its unit are indicated. The line ends with the total costs for each of the positions.
This paper ends with an indication of the total amount, which reflects all stages of construction. This is its total cost.
In some cases, in the calculation of the estimate, they resort to the use of various coefficients or indices. But they can be found in the framework of the most ambitious construction. For small, including private facilities, the need for them does not arise, so reading the finished estimate is simplified.
Thus, the time spent on the preparation of estimates greatly facilitate the upcoming work. In fact, this is a clear planning, in the framework of which both costs and the right amount of material for each of the manipulations are determined. This allows you to prevent unnecessary costs in the work and correctly organize it.
If everything is calculated correctly, it will be possible to correlate the upcoming costs with the solvency of the customer. In turn, this minimizes the risks of freezing construction work due to the unexpected lack of funds. Even in private construction, estimates are no longer neglected. Moreover, their compilation is increasingly trusted by experienced specialists, professionals who work in specialized companies and do not allow private teams to intentionally inflate the cost of construction.