PROBLEMS IN FORMING COST ESTIMATES FOR CONSTRUCTION INDUSTRY

Problems of forming cost estimates for the construction industry is relevant in Russia, where many construction organizations face the issue of a current pricing system that does not consider new technologies in construction. This leads to underestimations of costs in construction and limits opportu...

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Bibliographic Details
Main Authors: Oparin, Sergey, Chepachenko, Nikolay, Yudenkо, Marina
Format: Conference Proceeding
Language:English
Subjects:
Construction
Construction contracts
Construction costs
Construction industry
Contractors
Cost engineering
Cost estimates
Economics
Estimates
Forming
Installation
Investments
Marketing
Markets
Mathematical analysis
New technology
Organizations
Pricing
Profitability
Reliability
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Summary:Problems of forming cost estimates for the construction industry is relevant in Russia, where many construction organizations face the issue of a current pricing system that does not consider new technologies in construction. This leads to underestimations of costs in construction and limits opportunity for competitive pricing between construction companies. This article aims to provide recommendations for improving reliability in calculating construction costs and enhance efficiencies in capital investments by construction participants. The article provides an analysis of the existing system of pricing in construction, and the peculiarities of the system of pricing in both Russia and the United States. Results indicate the need for expediency in applying certain provisions of the foreign system into that of Russia’s for determining the cost of construction. These measures would help minimize the presence of contractors in the construction market who do not actually perform the construction and installation work on their own, and to achieve the desired level of profitability of 8 to 10%.
ISSN:1805-997X
1805-9961
DOI:10.12955/cbup.v4.759