The Impact of Calculation Bases on the Final Tender for Construction Works for a Single-Family Building

The purpose of preparing a tender is, in addition to acquiring the project, to calculate or predict what the costs of project implementation will be and to assess whether it can bring us profit. The basic purpose of a company is to generate profit, which finances the company's development. Direct costs are obtained by taking into account labour standards, valuing all costs associated with the procurement of materials, conducting enquiries and obtaining quotations. Many investors decide to construct buildings with multiple contractors, each of whom carries out a completed set of tasks. In the first part of the thesis, they defined which calculation components we know, what they include, how we estimate them and then applied them in a practical example.

Problem

The purpose of preparing a tender is, in addition to acquiring the project, to calculate or predict what the costs of project implementation will be and to assess whether it can bring us profit. The basic purpose of a company is to generate profit, which finances the company's development. To calculate the prices of individual items in the tender, we need quality data.

We separate input data into those with which we can directly charge an individual item and which represent direct costs. These include labour, materials, semi-finished products, transport, included subcontractors and equipment, as well as auxiliary materials.

Solution and Method

Direct costs are obtained by taking into account labour standards, valuing all costs associated with the procurement of materials, conducting enquiries and obtaining quotations. With these, we also obtain an estimate of costs for the inclusion of subcontractors. Other costs are represented by indirect costs.

These are more difficult to identify and capture. According to the place of origin, we divide them into costs associated with the construction site, company operating costs and other items, such as anticipated profit, anticipated risk and required guarantees. Construction site costs represent all costs that are necessary for the functioning of an individual construction site and are directly linked to that particular construction site and are not included in the designer's bill of quantities.

Company operating costs include those that are necessary for the company to operate and arise even when the company is not working. The sum of indirect costs must be taken into account and distributed among individual items with a created key – factors. Because the calculations of item values are very extensive, in the diploma thesis they limited themselves to construction works for the construction of a single-family house.

Results

Many investors decide to construct buildings with multiple contractors, each of whom carries out a completed set of tasks. In the first part of the thesis, they defined which calculation components we know, what they include, how we estimate them and then applied them in a practical example. They paid special attention to collecting indirect costs, their calculation and distribution.

At the end, they compiled all direct and indirect costs related to the project in a table, the sum of which represents the final value of the tender. For unit price tenders, we collect all costs, whereby the calculation of the value of each individual work item, which represents the sum of direct costs, is increased by the share of indirect costs, which is achieved by multiplying by the factor for indirect costs. The value of the item thus obtained represents the basis for preparing construction books and billing works.

In the thesis, they demonstrated the importance of accurate collection of indirect costs, which typically represent more than a quarter of the project value.