PROBLEMS IN FORMING COST ESTIMATES FOR CONSTRUCTION INDUSTRY

Sergey Oparin (), Nikolay Chepachenko () and Marina Yudenkо ()
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Sergey Oparin: Head of the Chair of Economics and management in the construction Petersburg State Transport University Emperor Alexander I, Saint-Petersburg,
Nikolay Chepachenko: Department of Economics and management in construction Petersburg State Transport University Emperor Alexander I, Saint-Petersburg
Marina Yudenkо: Department of Economics and management in construction Petersburg State Transport University Emperor Alexander I, Saint-Petersburg

CBU International Conference Proceedings, 2016, vol. 4, issue 0, 179-186

Abstract: 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%.

Keywords: constructionpricing; cost; estimates (search for similar items in EconPapers)
JEL-codes: P32 (search for similar items in EconPapers)
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:aad:iseicj:v:4:y:2016:i:0:p:179-186

DOI: 10.12955/cbup.v4.759

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