Pricing and Estimation Aspects in the Construction Industry of Russia
Pricing and Estimation Aspects in the Construction Industry of Russia
Author(s): Nina Aleksandrovna Orlova, Tatyana Aleksandrovna ShindinaSubject(s): Business Economy / Management, Recent History (1900 till today), Labor relations, Economic development
Published by: Reprograph
Keywords: investment-building complex; estimated pricing; value engineering; costing standards database;
Summary/Abstract: Over the last century, the Russian system of pricing and estimation in the construction industry has become the most detailed regulatory system of tariffs and costs; today the system of estimation norms combines prices for technological blocks of construction works that involve both the manual labour and the most leading technologies. However, the bulk of the regulatory system requires intensive work to make tariffs closer to the current market price taking into account price changes in the labour market and in the cost of materials. The system has a number of problems, for example, regulatory norms of estimated costs in Russia do not correlate with the European system much, and the rapid growth of technologies does not allow to change technology maps into estimated prices. The creation of the information database of aggregated indicators of various levels and specification that is primarily based on the real performance indicator of work amount, labor intensity, materials and machines consumption requires tremendous effort. The continuity of cost calculations at various stages of the investment and construction process (investment stage, engineering, etc.), requires the development of mechanisms to level differences between estimate calculations carried out in different types of estimates, as well as the documentation on mutual settlement for the work performed in order to ensure the validity of the regulation and establishment of reasonable price limits for construction products. This article is devoted to the study of the problem of improving the system of pricing and estimation in Russia at the present stage of its development.
Journal: Journal of Applied Economic Sciences (JAES)
- Issue Year: XI/2016
- Issue No: 45
- Page Range: 1490-1492
- Page Count: 3
- Language: English