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Cost engineering: construction price formation


Mukharramova E.R., Fayzullin I.E., Azhimova L.I.
(about the authors)

Mukharramova Elmira Rafailovna – (Kazan State University of Architecture and Engineering)

Fayzullin Irek Envarovich – (Kazan State University of Architecture and Engineering)

Azhimova Liliya Irekovna – (Kazan State University of Architecture and Engineering)

Published in:
Russian Journal of Entrepreneurship
– Volume 18, Number 16 (August 2017)

JEL classification: L70, L74

Keywords: construction works, cost engineering, cost management, estimated cost, investment projects, investments, local estimate calculations, object estimates, project life cycle, project management, summary estimates


Citation:
Mukharramova E.R., Fayzullin I.E., Azhimova L.I. (2017). Cost engineering: construction price formation. Russian Journal of Entrepreneurship, 18(16), 2317-2336. doi: 10.18334/rp.18.16.38234


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Abstract:

The article considers the issues of determination of the real construction cost of the object as part of cost engineering. Of all the known stages of cost engineering, the authors mark out the most significant stages, such as "estimated pricing" and "construction price formation". The article shows the impact of the methods of calculation of local estimates on the cost of building of the entire facility. We consider the issues of pricing in construction and the need for innovations in existing methods of calculation of local estimates. Such innovations in the pricing and estimate business should have a positive effect on the calculation of estimates and on the determination of the cost of construction of the facility. The article shows the algorithm for a complex estimation of the cost of construction of the facility with the purpose of further ensuring optimal indicators of the cost of the investment and construction project. The article has a certain practical significance and can be used during courses of professional retraining of employees of enterprises of the investment and construction complex, and in training of future engineers and economists.








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