Every job you do has a financial cost, and finance is a limited resource. Therefore, an enterprise or organization, before starting to perform a particular work, initially draws up a document called a cost estimate. This document indicates all the costs by type of work that are necessary to complete the task.
Cost estimate structure
The estimate is a financial document that reflects the planned work and the costs of these works.
The package of estimate documentation is drawn up on the basis of the terms of reference and consists of several more detailed documents. Each of these documents reflects certain items of expenditure.
1) Local estimate. The local estimate shows the planned direct costs. This document takes into account the list of all planned work and their cost, as well as the allotted time for this task, in accordance with the established standards. The cost of work includes:
- the salary of the main workers, corresponding to the qualification category of the worker;
- basic and auxiliary materials that are used in the process of performing work;
- costs of transport and other services that are planned for the direct implementation of repair or construction;
- general production costs (salaries of maintenance personnel, energy costs and other costs that must be taken into account when performing the planned work).
2) List of resources. The document includes:
- materials (basic and auxiliary) that will be used in the performance of work, with planned prices;
- the cost of equipment and vehicles.
These costs are already included in the local estimate, and the resource sheet provides more detailed details.
3) General production costs. They are different for each enterprise. The document, in a separate article, indicates the salary of the maintenance personnel who will be involved in the implementation of the planned work. These costs are more or less constant.
4) Contractual price - a consolidated document of all upcoming costs. In the contractual price, only the items of expenses and their costs are indicated. This document specifies the cost of administrative costs and profits, and forms the final cost of the project.
Planned and actual costs
After drawing up and approving the cost estimate, you can start performing the work. In this case, it is necessary to strictly adhere to the compiled cost estimate. But when performing the actual work, there may be some deviations from the estimated indicators. So, some work can be completed faster than the planned time - this will reduce costs and increase profits. But it can also be the other way around - the cost of actually purchased materials will be higher than planned. All these changes are reflected in the certificate of completion.
The information in the certificate of work performed must be true and factual. Otherwise, the calculation of profitability will be fictitious, and, instead of a profitable one, you can get an unprofitable project.
