Analog method of calculating the cost of construction

by Happy Happy on July 25, 2021 in Project Budget

To calculate the cost of the estimate, four types of expenses are used: for materials, operation of mechanisms and machines, remuneration of workers, as well as construction and installation work. To get the most accurate result, estimators resort to using standard calculation methods. These include an analog method of calculating the estimate, which has its own characteristics and the principle of calculation.

Method definition

It is a unique technique for calculating the cost of construction work through indexing and using calculation coefficients to previously formed expenditure statements for analogue objects.

This method can be used at different stages of project execution, including the development of tender documentation, investor estimates and feasibility studies.

Moreover, the analog method of calculation will be useful at a time when specific enlarged price standards are still available for use. It is worth noting that when forming an estimate, the cost of implementing a construction project should be indicated in the basic and current price level.

Calculation of the estimated cost by analog method

The considered method of development will be relevant for use at the initial stage of the investment cycle. The calculation is made on the basis of the cost indicators of the building that was previously erected or planned a similar object.

For calculation, it is customary to use a scheme designed to obtain an estimated cost in the current price level:

With the help of this scheme, it is possible to conduct a preliminary analysis of future costs at the design stage. It should be borne in mind that for comparison should be used construction projects, identical in design parameters and technological purpose.

In conclusion, it is worth noting that the calculation of the estimated cost is the basis for determining the amount of investment in the construction project.

Unfortunately, during the period of unstable economic policy in Russia, specialists use the basic-index and resource method of calculation to calculate the estimated documentation. That is why the analog method is used extremely rarely.