Volume 04 Issue 07-2024
18
International Journal Of Management And Economics Fundamental
(ISSN
–
2771-2257)
VOLUME
04
ISSUE
07
P
AGES
:
18-27
OCLC
–
1121105677
Publisher:
Oscar Publishing Services
Servi
ABSTRACT
This article provides the procedure for determining direct, overhead, maintenance costs and the procedure for
drawing up object, local and consolidated estimates. A study of the peculiarities of formation of the cost of
construction work was carried out. Construction work is one of the main indicators of the activity of a construction
organization.
KEYWORDS
The cost of construction and installation work, the procedure for creating estimates, site and local estimates, the
composition of construction work.
INTRODUCTION
In the conditions of the market economy, the prices of
construction works are created depending on the
prices of construction materials and other resources at
all stages of the investment project. Construction
production is characterized by the creation of various
types of construction products, the implementation of
construction in various geological and hydrogeological
conditions, and the dynamics of construction
processes at a high level. Therefore, it is necessary to
prepare a separate estimate for each construction
Research Article
THE PROCEDURE FOR DETERMINING THE PRICES OF CONSTRUCTION
AND ASSEMBLY WORKS AND ITS ECONOMIC IMPORTANCE
Submission Date:
July 02, 2024,
Accepted Date:
July -7, 2024,
Published Date:
July 11, 2024
Mukhammadiyev Utkir Akhmedovich
Associate Professor Of “Business Management” Department At Samarkand State Architecture And
Construction University, Uzbekistan
Dumayev Azizkhon Suvonkhon Ogli
Graduate Master’s Student Of Samsacu
, Uzbekistan
Journal
Website:
https://theusajournals.
com/index.php/ijmef
Copyright:
Original
content from this work
may be used under the
terms of the creative
commons
attributes
4.0 licence.
Volume 04 Issue 07-2024
19
International Journal Of Management And Economics Fundamental
(ISSN
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2771-2257)
VOLUME
04
ISSUE
07
P
AGES
:
18-27
OCLC
–
1121105677
Publisher:
Oscar Publishing Services
Servi
object. These estimates are made taking into account
the project of construction works, the prices at the
time of the estimate, and the technical solutions of the
building construction project, as well as the conditions
for the implementation of construction and assembly
works. When drawing up an estimate of a construction
building, the calculation of the works carried out
during the construction of the building is taken as a
basis.
Estimated cost is the amount of money spent on
creating buildings and structures in accordance with
project solutions. It is this price that determines the
amount of capital investment for the construction of
construction
buildings,
subsidies
for
urban
development and construction works, conclusion of
contracts on the prices of construction materials
(constructions), payment for completed contract
works (construction-assembly, repair, etc.), purchase
of technological equipment and serves as a basis for its
delivery to the construction site and other expenses.
The estimated cost of construction and assembly
works according to the estimate (the basic estimated
cost of construction materials) consists of direct costs
(DC) and overhead costs (OC) and estimated profit
(EP) according to the estimate:
E
b.e.c.c.m.
= DC+ OC+ EP (1)
Volume 04 Issue 07-2024
20
International Journal Of Management And Economics Fundamental
(ISSN
–
2771-2257)
VOLUME
04
ISSUE
07
P
AGES
:
18-27
OCLC
–
1121105677
Publisher:
Oscar Publishing Services
Servi
Volume 04 Issue 07-2024
21
International Journal Of Management And Economics Fundamental
(ISSN
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2771-2257)
VOLUME
04
ISSUE
07
P
AGES
:
18-27
OCLC
–
1121105677
Publisher:
Oscar Publishing Services
Servi
Figure 1. The procedure for forming the construction estimate price.
When creating an estimate, various costs are taken
into account, as well as individual taxes, including value
added tax. The procedure for forming the construction
estimate price is illustrated in Figure 1.
Local estimates are created to determine the
estimated cost of construction and assembly works.
Object estimates are formed based on local estimate
calculations. In the same way, the building estimate
calculation and the aggregated prices of construction
materials are also determined.
Local estimates are created to determine the
estimated cost of construction and assembly works.
Based on the calculations of local estimates, object
estimates are formed. In the same way, the building
estimate calculation and aggregated prices of building
materials are also determined.
Local estimates belong to the category of primary
estimate documents, these estimates are created by
calculating the exact types, volumes and costs of the
work to be performed on the basis of the working
project documents. [1]
Direct costs are the costs arising from the sum of
local estimates. These costs are directly related to the
execution of certain construction and assembly works
(Figure 3).
Hence, direct costs are found using the following formula:
DC = М + C
w
+ Е
t
(2)
DC
–
direct costs;
М –
cost of building material constructions and items;
C
w
–
wage costs of workers employed in construction;
Е
t
–
the cost of using equipment in construction.
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International Journal Of Management And Economics Fundamental
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04
ISSUE
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:
18-27
OCLC
–
1121105677
Publisher:
Oscar Publishing Services
Servi
Volume 04 Issue 07-2024
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International Journal Of Management And Economics Fundamental
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04
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OCLC
–
1121105677
Publisher:
Oscar Publishing Services
Servi
Figure 2. Composition of local estimate accounts.
In order to create local estimates, additional calculations are made in the course of construction work when the
volume of work and the costs of their implementation, specific features of building construction, and the
methodology of performing these works are unclear, and adaptive measures are used (Figure 2).
Figure 3. Structure of direct costs formed during the construction process.
Costs for completing one unit of measurement (for
example, 1m3 of concrete work or 1m2 of floor work)
are called unit estimate prices.
Overhead costs are the sum total of costs, which
include
construction,
maintenance,
equipment
adjustment and testing, as well as management,
control, and maintenance [3].
Overhead costs are the costs of running construction
enterprises and ensuring the construction of buildings
(administrative, economic, etc.). The composition of
overhead costs is illustrated in Figure 4.
Direct costs and overheads ultimately make up the
estimated cost of the construction work.
E
p
= DC+ OC
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International Journal Of Management And Economics Fundamental
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04
ISSUE
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:
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OCLC
–
1121105677
Publisher:
Oscar Publishing Services
Servi
Estimated profit is the income of the construction
organization, and this profit is usually directed to the
development of the construction production complex
and the field of social services. Estimated profit is a
standard part of the cost of construction materials,
which is not included in the cost of services.
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International Journal Of Management And Economics Fundamental
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OCLC
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1121105677
Publisher:
Oscar Publishing Services
Servi
Figure 4. Classification of additional costs taken into account in the formation of the estimated cost of
construction and assembly works.
The current value is the price amount, and the
value at the time of pricing is the basis of prices. The
building construction estimate is created separately
for each building and structure and determines the
total amount of costs. The object estimate reflects the
local estimates in its composition and is used in the
formation of the building construction contract. Based
on the calculation of local estimates and direct local
estimates, the object estimate is calculated, in which
the data of local estimates compiled on the basis of
working projects are further clarified and compared.
The estimate calculations agreed with the
contracting organizations are included in the object
estimate and serve as the basis for determining the
value of the construction product [3].
At the end of the facility estimate, the cost of
construction and assembly works and the funds for
covering limited expenses are also indicated. As a
result, the full estimated value of the building is
determined. This determined estimate value makes it
possible to make financial calculations in actual
enterprises for the work performed between the
customer and the contracting organization [4].
These costs include:
- costs related to the cooling of the weather during the
winter and similar cost factors not specified in the
estimate;
- expenses determined as a percentage of the local
estimated price of the work to be performed and the
type of unplanned work and activity. All local estimates
are calculated;
- creating a reserve of financial resources for
unplanned work and expenses. These costs are
included in the aggregate estimate and are directed to
cover the costs of contracting organizations [2].
In the field of construction, the situation of
completion of buildings and structures by a single
contracting organization has not changed. All
construction and assembly works are allocated to
certain contracting organizations from the point of
view of specialization. As a result, a scheme of mutual
relations of building subjects is created (Fig. 5).
Most organizations in the construction industry
are contractors. These are general contractors and
subcontractors. If the contracting organization cannot
perform all the construction and installation work
independently, it can involve other construction
organizations on the basis of the contract. In this case,
the first construction organization is the general
contractor, and the others are subcontracting
organizations. Mutual relations between the general
contractor and subcontracting organizations are
carried out on the basis of the contract, namely the
construction contract.
Volume 04 Issue 07-2024
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International Journal Of Management And Economics Fundamental
(ISSN
–
2771-2257)
VOLUME
04
ISSUE
07
P
AGES
:
18-27
OCLC
–
1121105677
Publisher:
Oscar Publishing Services
Servi
The contract, drawn up in accordance with the
established procedures, defines the rights and
obligations of the participants of the construction
process regarding the construction, reconstruction,
expansion, technological modernization, capital repair
and others. On the basis of this contract, the
contracting organization must complete certain
buildings and structures based on the customer's plan
(project-estimate documents) within the specified
time, and the customer must create conditions for the
construction and assembly work, accept the result and
pay the amount specified in the contract.
Figure 5. The scheme of relations of construction entities.
CONCLUSION
In conclusion, it can be said that the cost of
construction is the construction of new construction
buildings, expansion, development, repair and
modernization of current fixed assets (production and
non-production). These funds are part of the cost of
the investment project and serve as a basis for
calculating the efficiency of construction production
and the efficiency of the investment project. Estimated
cost of construction is determined using various
indices and coefficients and common current prices
used in practice. The normative documents used in
Volume 04 Issue 07-2024
27
International Journal Of Management And Economics Fundamental
(ISSN
–
2771-2257)
VOLUME
04
ISSUE
07
P
AGES
:
18-27
OCLC
–
1121105677
Publisher:
Oscar Publishing Services
Servi
determining the estimated cost of construction do not
fully reflect the specific features of the construction
(constructive
and
volume-planning
solutions).
Similarly, in a situation of shortage of financial
resources, it has disadvantages that cannot be
allowed. Therefore, based on the experience of
developed countries, it makes it possible to determine
the estimated cost of construction.
Therefore, based on the experience of developed
countries, the use of resource-based methods for
estimating the cost of construction creates an
opportunity to estimate the cost of the building under
construction with high accuracy.
REFERENCES
1.
Кулимова И.Б. “Процесс формирония стоимости
строительно монтажных работ” Экономические
и гуманитарные науки. 20019. №6 580 С
-56-57
2.
Абдукадирова Х.А., Джабриев А.Н. “Экономика
строительства” Учебное пособие Ташкент 2024г
3.
Муххамадиев У.А. “Стратегик менежмент”
Дарслик. Тошкент 2021й. У39. ЛЕССОН ПРЕСС
ИСБН 978
-9943-7022-7-8
4.
Сорокина
М.С.
Соотношение
категорий
себестоимость
и
стоимость
для
целей
поэлементарной
оценки
добавленной
стоимости. Управленческий учет 2018, №10, С
-71-
76
