Practices or works for private and corporate customers showed that the most transparent and understandable way to present the estimates are the estimates made in commercial rates, based on current prices for labor and material, consisting of direct and limited costs (overheads and planned profit). The composition and size of the limited costs to be negotiated and fixed by the construction contract.

The exception could be certain types of work for which unit prices are set including all …

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Direct costs (DC) consist of current market price of building materials (M) required to perform specified type of construction works, of basic wages of construction workers (W) and of costs of construction machinery and devices operating (MO) used for the implementation of specified works. Direct costs are directly attributable to a performance of any type of construction or installation works. The direct costs include: basic wages, the cost of building materials and construction, operating …

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Indirect costs (IC) - are the costs that are not directly connected with the process of creation of building products, but referred to creation of general conditions of building production, its organization, management, and maintenance.

Overhead costs include the following cost items:

• general administrative expenses of construction organization;

• production equipment and inventory purchase and storage;

• improvement …

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Estimated profit (EP) - is the planned profit of construction company, added to the facility value during designing stage. Overhead and planned savings may be contractual or normative values​​. Typically, they are the standard value determined by a customer or investor.

Practically, the planned savings make 10-18% of the total direct costs and overhead costs.
Planned savings are planned profit of the construction and installation company, a …

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A basis for carrying out construction and assembly works is a construction contract signed by the parties. As a general rule, a contract is a framework that defines basic principles of relations between the parties, and all the specific types of work, schedules, and payment are governed by additional agreements to the contract.

Depending on the amount of work there are several types of contracts. A simplified construction contract is in attachment.

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Production schedule (schedule) of works is certainly a key document of work production plan(WPP). The project success depends on quality of this plan development. Calendar plan is a model of building production, which establishes a rational sequence, priority and timing of onsite works.

Progress schedule included all the basic and additional work required and makes all necessary calculations.

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The results of the work are represented in monthly acts of unified form that define KS-2, KS-3 the scope of work and constitute grounds for carrying out reciprocal payments. In addition to these acts, acts of hidden works are signed at the working results closing by following works in progress.

Upon completion of all the range of works  a final work completion certificate is compiled, where works are completely  accepted in a part of their quality and …

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