Price of Building Work

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Price of Building Work
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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

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Standard classification of production

• Standard classification of production is
  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)

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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

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Classification of Building Constructions and
works

• Classification of Building Constructions and
  works (Trídník 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

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Overview of Groups of Building Sections
Number Title of group of building sections
0 General construction and works
1 Earthworks
2 Foundations, special foundations
3 Vertical and complete constructions
4 Horizontal constructions
5 Communications
6 Construction of surfaces, floors
7 Associated building production (handcrafts, installations)
8 Pipage, conduction
9 Finishing works, demolitions
Item budget
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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

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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

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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

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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

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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

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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)

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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

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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

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Costing Model Profit

• Profit
• assigned according to the
• requirements of company
• possibilities coming from situation on the market
• Price totally DC (MWODCS) IC (OPCOAC) P

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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

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Price of building workrecapitulation
Unit price of building work Unit price of building work Unit price of building work Unit price of building work Unit price of building work
Direct costs (DC) Direct costs (DC) Direct costs (DC) Indirect costs (IC) Profit (P)
M A T E R I A L Wages ODC Machines OC OC production administrative Profit (P)
M A T E R I A L Costs conversion (CC) Costs conversion (CC) Costs conversion (CC) Profit (P)
M A T E R I A L Direct costs conversion (DCC) Direct costs conversion (DCC) Gross margin (GM) Gross margin (GM)
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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

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Kalkulace ceny stavební práce