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Problems In Forming Cost Estimates For Construction Industry

Author

Listed:
  • 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)

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%.

Suggested Citation

  • Sergey Oparin & Nikolay Chepachenko & Marina Yudenkо, 2016. "Problems In Forming Cost Estimates For Construction Industry," CBU International Conference Proceedings, ISE Research Institute, vol. 4(0), pages 179-186, September.
    • Handle: RePEc:aad:iseicj:v:4:y:2016:i:0:p:179-186
    DOI: 10.12955/cbup.v4.759
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    More about this item

    Keywords

    constructionpricing; cost; estimates;
    All these keywords.

    JEL classification:

    • P32 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Collectives; Communes; Agricultural Institutions

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