Financial Plan of Building Order Lecture was elaborated with the help of grant project of Ministry of Education, Youth and Sports, FRVŠ n. 2005 „Innovation of Subject Financing of Building Order“ Financial Plan of Building Order

Preparation of Building Order Financing – Side of Supplier Project documentation creation (acquisition) Overview of activities Building object's price assessment Time plan of construction (time harmonogram) Plan of recourses Financial plan 30.5.2019 Financing of Building Order

Principle of Calculation of Building Order Direct costs Profit Aim price Required profit Aim costs Supposed costs Indirect costs Offer price + = 30.5.2019

Building Object Price Assessment Costs for building part are calculated as a sum of costs: for particular building works materials not included in the building work (valuated as a specification) shift with materials For calculation it is prepared the item budget Item budget includes basic costs Item represents: building works material in specification 30.5.2019 Financing of Building Order

Overview of Groups of Building Sections Number Title of group of building sections General construction and works 1 Earthworks 2 Foundations, special foundations 3 Vertical and complete constructions 4 Horizontal constructions 5 Communications 6 Construction of surfaces, floors 7 Associated building production (handcrafts, installations) 8 Pipage, conduction 9 Finishing works, demolitions 30.5.2019 Financing of Building Order

Price of Building Work - Costing Model (Formula) Unit price of building work Direct costs (DC): Direct material (M) Direct wages (W) Other direct costs (ODC) Machines and machinery (S) Indirect costs (IC): Overhead product costs (OPC) Overhead administrative costs (OAC) Profit (P) Price totally 30.5.2019 Financing of Building Order

Costing Model – Direct Costs Direct material (M - determinable) Number of item Description of item Measure unit of item Norm of consumption Purchase price of material Item totally Unit weight Weight totally per item 30.5.2019 Financing of Building Order

Costing Model – Direct Costs Direct wages (W - determinable) Code (number) of profession Description of profession Output in standard (man) hours (Nh) Wage hour tariff (CZK/hour) Item totally 30.5.2019 Financing of Building Order

Costing Model – Direct Costs Machines and machinery (S with determinable Output) Code (number) of machine (own company's classification) Description of machine Output in standard (machine) hours (Sh) Tariff per Sh Item totally 30.5.2019 Financing of Building Order

Costing Model – Direct Costs Other direct costs (ODC) Payments to funds of social and health insurance from direct wages Transport costs (realized by own car or bought transport services) 30.5.2019 Financing of Building Order

Costing Model – Indirect Costs Overhead product costs (OPC) Includes all kinds of costs arising in the frame of production as a group of costs connected with realization of more activities (building works) For example: Costs for bought services connected directly with production process (telephones, energy instead direct costs for machines) Costs for consumption of overhead materials Wages of foremen, site engineers etc. including payments into funds of social and health insurance 30.5.2019 Financing of Building Order

Costing Model – Indirect Costs Overhead administrative costs (OAC) includes all costs connected with administration and management of company For example: costs for bought services connected with administration of company (telephones, energy, leases) costs for overhead material consumption wages of workmen including payments into funds of social and health insurance depreciation of long-term property 30.5.2019 Financing of Building Order

Price totally = DC (M+W+ODC+S) + IC (OPC+OAC) + P Costing Model – Profit Profit assigned according to the: requirements of company possibilities coming from situation on the market Price totally = DC (M+W+ODC+S) + IC (OPC+OAC) + P 30.5.2019 Financing of Building Order

Price of Building Work – calculation for production unit (m.u.) Costs for material per item in CZK: Norm of material consumption x purchase price of material Cost for wages per item in CZK: Amount of Nh x wage hour tariff Possible premium payments in % from wage Costs for machines per item in CZK: Amount of Sh x hour tariff of machine work Other direct costs totally in CZK, payments into funds:  Costs for direct wages x 0,35 (year 2006) Overhead production costs in CZK: tariff x basis Overhead administrative costs in CZK : tariff x basis Profit in CZK : tariff x basis 30.5.2019 Financing of Building Order

Price of building work recapitulation Unit price of building work Direct costs (DC) Indirect costs (IC) Profit (P) M A T E R I L Wages ODC Machines OC OC production administrative Costs conversion (CC) Direct costs conversion (DCC) Gross margin (GM) 30.5.2019 Financing of Building Order