Methods for operational risk’s analysis of entrepreneurial structures in civil engineering

Abstract

The object of this research work is constructional business structures’ activity. The subject of the research is the connection between profit and work volume, taking into account a construction company’s tax and economic specifics. This research work’s goal is to develop formulas for calculating the break-even point (BEP) of a construction (contracting) company. In this case, the company can use three tax regimes. Firstly, it is the general taxation system (GTS), where the value added tax is paid. Secondly, it is a simplified taxation system (STS) with the object of taxation “income”. Thirdly, it is the taxation object STS “income reduced by the amount of expenses.” Methods of budgeting, methods of calculating tax liabilities, algebra, and general scientific methods are used to obtain the results. The approbation was carried out on the economic model of a construction firm, compiled with the use of data on the estimated cost of a building object in Novosibirsk. As a result, formulas have been developed for calculating the construction companies’ BEP, using STS, as well as BEP formulas of construction companies with the use of STS with various objects of taxation. These three BEPs values comparison is carried out, which proves the influence of the taxation system on the risks magnitude, the taxation system with the highest BEP is shown. The effect paradoxicality of STS on the tax liabilities amount, profits and operational risks is shown.