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Price of Building Work

This is a comprehensive classification and costing model for building works, including item budgets, documentation, direct and indirect costs, and profit calculations.

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Price of Building Work

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  1. Price of Building Work

  2. Item of Budget of Building Part • Numeral code of item (Classification of Building Constructions and Works) • Description of item • Measure unit • Amount of item in measure unit • Unit price in e.g. CZK per measure unit • Totally per item • Unit weight in tons • Weight in tons totally per one item Price of Building Works

  3. Standard classification of production Standard classification of productionis connected and compatible with the classification of production of the EU. Subjects of classifications are: • physical products (goods) all industrial, agricultural, wood and other product sold by producer for the next use • works of production character(working activities) works focused on the production of new tangible property or its part • services (activities) activities not focused on the creation of new tangible assets, as services, repairs, maintenance Main classifying element is a section signed by code of two numbers, then follow next numbers specifying the subject of classification more directly – group class, category, subcategory. For the building industry there is intended section 45 - Building works (works on new structures, reconstructions, modernizations, repairs and maintenance) Price of Building Works

  4. Standard classification of production Section 45 – Building industry is classified in the following way: 45.1 Preparative works for realization 45.2 Fabric - building and engineering constructions 45.3 Building installations 45.4 Internal building works, finishing works 45.5 Lease of machines and equipment with stuff 45.21 Construction works on fabric of buildings and engineering structure 45.22 Roof construction, laying of roofage 45.23 Construction on fabric of communications and airports 45.24 Works on fabric of water constructions 45.25 Specialized building works 45.41 Parging works 45.42 Building locksmithing and joinery 45.43 Facing of walls, covering of floors 45.44 Decorating, lacquering and glazier works 45.45 Other internal works Price of Building Works

  5. Classification of Building Constructions and works • Classification of Building Constructions and works(Třídník stavebních konstrukcí a prací – TSKP) sorts partial results of building production – building works and creates the base e.g. for the structure of budget that serves for the building construction price establishment • as a base of the sorting of building construction it was chosen the building section as a function part of a building object Scheme of a code: 1.2.3.4. 5. • Group of building sections • Building section • Kind of construction or work • Detailed characteristics Price of Building Works

  6. Overview of Groups of Building Sections Item budget Price of Building Works

  7. Data for the Budget Preparation • Documentation of building (drawings, design, technical report) • Technologic processes • Price catalogue of building works • Price catalogues of material for valuation of materials in specifications • Prices agreed with sub-suppliers Price of Building Works

  8. Costing Model (Formula) Unit price of building work Direct costs (DC): • Direct material (M) • Direct wages (W) • Other direct costs (ODC) • Machines and machinery (S) Indirect costs (IC): • Overhead product costs (OPC) • Overhead administrative costs (OAC) Profit (P) Price totally Price of Building Works

  9. Costing Model – Direct Costs Direct material (M - determinable) • Number of item • Description of item • Measure unit of item • Norm of consumption • Purchase price of material • Item totally • Unit weight • Weight totally per item Price of Building Works

  10. Costing Model – Direct Costs Direct wages (W - determinable) • Code (number) of profession • Description of profession • Output in standard (man) hours (Nh) • Wage hour tariff (CZK/hour) • Item totally Price of Building Works

  11. Costing Model – Direct Costs Machines and machinery (S with determinable Output) • Code (number) of machine (own company's classification) • Description of machine • Output in standard (machine) hours (Sh) • Tariff per Sh • Item totally Price of Building Works

  12. Costing Model – Direct Costs Other direct costs(ODC) • Payments to funds of social and health insurance from direct wages • Transport costs (realized by own car or bought transport services) Price of Building Works

  13. Costing Model – Indirect Costs Overhead product costs (OPC) • Includes all kinds of costs arising in the frame of production as a group of costs connected with realization of more activities (building works) For example: • Costs for bought services connected directly with production process (telephones, energy instead direct costs for machines) • Costs for consumption of overhead materials • Wages of foremen, site engineers etc. including payments into funds of social and health insurance Price of Building Works

  14. Costing Model – Indirect Costs Overhead administrative costs (OAC) • includes all costs connected with administration and management of company For example: • costs for bought services connected with administration of company (telephones, energy, leases) • costs for overhead material consumption • wages of workmen including payments into funds of social and health insurance • depreciation of long-term property Price of Building Works

  15. Costing Model – Profit Profit • assigned according to the: • requirements of company • possibilities coming from situation on the market Price totally = DC (M+W+ODC+S) + IC (OPC+OAC) + P Price of Building Works

  16. Price of Building Work – calculation for production unit (m.u.) Costs for material per item in CZK: • Norm of material consumption x purchase price of material Cost for wages per item in CZK: • Amount of Nh x wage hour tariff • Possible premium payments in % from wage Costs for machines per item in CZK: • Amount of Sh x hour tariff of machine work Other direct costs totally in CZK, payments into funds: •  Costs for direct wages x 0,35 (year 2006) Overhead production costs in CZK: tariff x basis Overhead administrative costs in CZK : tariff x basis Profit in CZK : tariff x basis Price of Building Works

  17. Price of building workrecapitulation Price of Building Works

  18. Calculation of Tariff per Sh Costing model: • Costs for purchasing and running (without fuelling or energy): • Annual depreciation • Annual costs for repairs and maintenance • Annual costs for moving with machinery • Costs per an hour of machine running (without fuelling and energy) • Annual costs for machine totally / Annual number of hours of machine running • Costs for fuelling or energy per an hour of machine running: • Norm of consumption x Purchase price • Calculation tariff of machine (for building works price establishment): • Costs for purchasing and running + Costs for fuelling and energy Price of Building Works

  19. Kalkulace ceny stavební práce Price of Building Works

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