1. Price of Building Work

2. Item of Budget of Building Part
Numeral code of item (Classification of Building Constructions and Works)
Description of item
Measure unit
Amount of item in measure unit
Unit price in e.g. CZK per measure unit
Totally per item
Unit weight in tons
Weight in tons totally per one item
Price of Building Works

3. Standard classification of production
Standard classification of production is connected and compatible with the classification of
production of the EU. Subjects of classifications are:
physical products (goods)
all industrial, agricultural, wood and other product sold by producer for the next use
works of production character (working activities)
works focused on the production of new tangible property or its part
services (activities)
activities not focused on the creation of new tangible assets, as services, repairs, maintenance
Main classifying element is a section signed by code of two numbers, then follow next
numbers specifying the subject of classification more directly – group class, category,
subcategory.
For the building industry there is intended section 45 - Building works (works on new
structures, reconstructions, modernizations, repairs and maintenance)
Price of Building Works

4. Standard classification of production
Section 45 – Building industry is classified in the following way:
45.1 Preparative works for realization
45.2 Fabric - building and engineering constructions
45.3 Building installations
45.4 Internal building works, finishing works
45.5 Lease of machines and equipment with stuff
45.21 Construction works on fabric of buildings and engineering structure
45.22 Roof construction, laying of roofage
45.23 Construction on fabric of communications and airports
45.24 Works on fabric of water constructions
45.25 Specialized building works
45.41 Parging works
45.42 Building locksmithing and joinery
45.43 Facing of walls, covering of floors
45.44 Decorating, lacquering and glazier works
45.45 Other internal works
Price of Building Works

5. Classification of Building Constructions and works
Classification of Building Constructions and works (Třídník stavebních konstrukcí a prací – TSKP) sorts partial results of building production – building works and creates the base e.g. for the structure of budget that serves for the building construction price establishment
as a base of the sorting of building construction it was chosen the building section as a function part of a building object
Scheme of a code:
Group of building sections
Building section
Kind of construction or work
Detailed characteristics
Price of Building Works

6. 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
Item budget
Price of Building Works

7. Data for the Budget Preparation
Documentation of building (drawings, design, technical report)
Technologic processes
Price catalogue of building works
Price catalogues of material for valuation of materials in specifications
Prices agreed with sub-suppliers
Price of Building Works

8. 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
Price of Building Works

9. 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
Price of Building Works

10. 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
Price of Building Works

11. 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
Price of Building Works

12. 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)
Price of Building Works

13. 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
Price of Building Works

14. 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
Price of Building Works

15. 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
Price of Building Works

16. 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
Price of Building Works

17. 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)
Price of Building Works

18. Calculation of Tariff per Sh
Costing model:
Costs for purchasing and running (without fuelling or energy):
Annual depreciation
Annual costs for repairs and maintenance
Annual costs for moving with machinery
Costs per an hour of machine running (without fuelling and energy)
Annual costs for machine totally / Annual number of hours of machine running
Costs for fuelling or energy per an hour of machine running:
Norm of consumption x Purchase price
Calculation tariff of machine (for building works price establishment):
Costs for purchasing and running + Costs for fuelling and energy
Price of Building Works

19. Kalkulace ceny stavební práce
Price of Building Works