The impact of cost bases on the final construction offer for a single-dwelling building
Construction & Civil Engineering
The purpose of making a bid is to calculate or predict what the costs of implementing the project will be and to estimate whether it can generate a profit. The basic purpose of an enterprise is to make a profit for the financing of further development within the company.
Quality data is needed to calculate the prices of individual items in the offer. Input data is differentiated into those with which we can directly burden each item and represent direct costs, including work, materials, semi-finished products, transport, subcontractors and equipment included and auxiliary materials.
Direct or indirect costs are obtained by following the norms of the work, evaluating all costs associated with the purchase of material, the execution of demands and the acquisition of offers. These costs are also utilised to obtain an estimate of the costs for the inclusion of subcontractors.
Other costs representing both direct or indirect costs are more difficult to identify and cover and are therefor divided by origin into those related to the construction site, operating costs of the company and others, such as, estimated profit, estimated risk and necessary guarantees.
Construction costs represent all costs necessary for the function of each site and are not covered by the project list as they are directly linked to each specific site. As such, the operating costs of the company include those necessary for the daily operation of the company and are incurred even when the company does not work.
Indirect costs must be taken into account and divided among the individual items with a factor based generated key. Since the calculation value of indirect items can become very extensive, for the purpose of this diploma thesis we will limit ourselves to the construction work associated with the construction of a stand-alone single dwelling house.
Many investors choose to build facilities in conjunction with several contractors, each of which performs a complete set of specific tasks. In the first part of this task, we defined which builders will be utilised, what works they cover, their cost, their evaluation and how we then utilise them on a practical case.
Special attention was paid to the collection of indirect costs, their calculation and distribution. Finally, in the table, we collected all direct and indirect costs related to the project, the collection of which represents the final value of the offer.
For bids per unit, we collected all costs, including the calculated value of each individual work item, which is then represented by the sum of direct costs which are in turn increased by the proportion of indirect costs.
These were in turn achieved by multiplying the indirect cost factor. The value thus obtained is the basis for the production of construction books and billing works. In the task, we showed the importance of an accurate collection of indirect costs, which usually account for more than a quarter of the value of the project.