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

2. 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
Financing of Building Order

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

4. 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
Financing of Building Order

5. 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
Financing of Building Order

6. 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
Financing of Building Order

7. 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
Financing of Building Order

8. 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
Financing of Building Order

9. 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
Financing of Building Order

10. 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)
Financing of Building Order

11. 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
Financing of Building Order

12. 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
Financing of Building Order

13. 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
Financing of Building Order

14. 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
Financing of Building Order

15. 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)
Financing of Building Order