Construction Price Research Articles

ON THE PROBLEM OF IMPROVING THE PROCEDURAL FOUNDATIONS OF THE MARKET APPROACH TO DETERMINING THE COST OF DESIGN AND SCIENTIFIC DESIGN WORK

In many cases, construction objects differ in size, total area, number of floors, and materials used to manufacture structural elements, which leads to certain peculiarities in the pricing mechanism in construction, in particular in design and scientific design works. Construction objects according to a typical project will not have the same value depending on the location and local conditions of the construction site. In recent years, significant transformations have taken place in Ukraine in the field of pricing and assessment of the value of investment projects and programs. The development of market relations in Ukraine made it necessary to develop a modern methodology of pricing and cost management in construction, in particular, in determining the cost of design and scientific-project works, taking into account the best world experience and international standards. The efforts of many scientists and practitioners of Ukraine and abroad are aimed at solving this problem. The need to estimate the cost, design and scientific design works, as well as the construction of the object in general, arises in the early stages. However, at this stage, only approximate costs are determined, and as investigations are carried out and information is accumulated, new opportunities appear for calculating a more accurate estimate of the cost of the objects being designed. Therefore, the calculation of the cost of project works is mainly carried out individually according to the estimate, which specifies the scope of work, estimates, construction equipment and methods for specific types of work. Emphasizing the problems of the pricing system of project and scientific project works in our country, the organizational and economic problems of reducing the cost of investment and construction projects are considered. Including, by improving the efficiency of competitive selection of Investors, Contractors (construction agencies) and Suppliers of project products. An important issue is the issue of a comparative (market) approach to pricing in construction, in particular for design and research and design services. The market price is the prevailing price paid for project services in the project market for the relevant period in the sales process, regardless of the Manufacturer's individual costs. In the macroeconomic plan, prices are considered as the most important strategic criterion characterizing the market situation. Price changes are influenced by a number of price-forming factors. The basis of calculation procedures is the introduction of corrections for discrepancies between the object being evaluated and similar objects, the value of which is known. The same adjustments are permissible for a certain average market value. A significant problem remains the low level of practical use of project methodology. If the pricing policy is not properly formed, the project enterprise will not be able to achieve the intended goals; therefore, special attention should be paid to this issue.

Rental and sales price premiums for energy efficiency in Germany's pre-War apartments: Where are the shortfalls and what is society's role in bringing fairness?

Increasing energy efficiency in residential buildings brings the social benefits of CO2 emissions reduction, increased energy security, reduced energy poverty and better public health, but is costly. The question arises as to who should pay for these social benefits: tenants, property owners, or society? The issues are complicated by the fact that the direct costs and benefits of energy-efficiency renovation are influenced by real estate markets. These market effects need to be better understood so that social costs, subsidies and CO2 taxes can be more fairly apportioned. As a case study, this paper investigates sales and rental market premiums for energy efficiency in 2019–2021 among the 6 million apartments in Germany that were built in 1800–1945, using a database from Germany's largest real estate portal. These apartments are notoriously energy inefficient, and their architecture and elegance can make energy-efficiency retrofitting difficult and expensive. Using least squares regression analyses, it finds that sales premiums for energy efficiency generally compensated owners who retrofitted then sold, were too low to compensate landlords/landladies for retrofitting, and too high for tenants or purchasers to offset through reduced energy consumption. The study asks how subsidies or CO2 taxes could help correct these market anomalies. Market premiums vary greatly by geography, suggesting that subsidies or taxes would need to vary by region. The relative stability of construction and energy prices in 2019–2021 make this a useful study of how different factors can interact to influence market premiums and set parameters for social subsidy and tax interventions.

The Green Building Development and Assessment Method – Energy and Cost Analysis in China

With the aggravation of global warming in the world, China is a country that produces a large amount of carbon dioxide every year. The development of green buildings is a primal aspect that the Chinese government has worked for many decades to build a healthy environment. This study explores three major Chinese green building assessment methods and compares the Evaluation Standard for Green buildings (three-star standard) with other countries’ representative assessment methods, which indicates that the three-star standard puts more attention on qualitative indicators. So, many buildings which receive that certification does not really have much sustainable equipment or save much energy. Also, this paper researches the status of green buildings in China. There are not many developers investing in green buildings, due to the price of green building construction is much more expensive than conventional buildings. That is because those green buildings equip many sustainable technologies and equipment. To encourage the construction of green buildings, the government can enact regulations and incentives to encourage more companies and developers to build green buildings.

Features of the estimator’ work in 2023

Since December 30, 2022 New additions and changes to the Order of Ministry of Construction "On the Approval of Budget Standards", approved on December 30, 2021 No. 1046/pr was implemented since December, 30, 2022. It is supposed, that in 2023 the transition to the resource-and-index method of budget pricing in construction will be completed at last. The main additions and changes, some features of the updated budget regulatory base (BRB-2022) are considered in the article, some steps for the further improvement of pricing in the Russian Federation are listed. The scheme of interaction of the Qualifier of construction information with other qualifiers is described, including the Qualifier of construction resources, the Qualifier of capital construction projects on their appointment and functional and technology features, the budget regulatory base. The conclusion is drawn that the transition to the new method is a long, evolutionary process, and only a part of work is carried out at the current stage.

Improving Procurement Selection Criteria for Managing Construction Tender-Price Volatility on Public Projects

This paper investigates current knowledge concerning adopted procurement strategies for managing construction-price in the public sector. The article reveals that studies mainly address four main areas: procurement decision support systems, transparency, ethical considerations in procurement, identification of procurement criteria, and overcoming inconsistencies in the procurement process. The paper provides a new perspective on the selection of procurement strategy. Therefore, selecting a suitable procurement strategy is essential for managing project pricing. The review has revealed that the lowest bid is the main criterion of contractor selection in the public sector. There is a need to combine some, if not all, procurement strategies within a significantly flexible approach that can have multiple potential advantages in the construction field by serving as a robust decision-making tool. There is a need to develop a public procurement strategy for managing construction price variability and inflation by modeling for fundamental principles such as value for money, benchmarking price performance, and reducing tendering documentation errors, that collude and conspire to impact price inflation, client perception and infrastructure push, and public accountability. The study, thus, deduces two principal factors that serve as critical indicators of a procurement selection criterion focused on managing construction tender-price variability and inflation. These include benchmarking price performance and eliminating errors in the tender documentation.

Protecting Occupational Health and Safety in Construction Companies in the Czech Republic

Currently it is the third year when the global COVID-19 pandemic is having a negative impact on the lives of individuals, on the activities of economic entities of all sizes and on the economies of countries around the world. Following the partial calming in this area, a crisis linked to the war in Ukraine hit Europe in early 2022. This has a negative impact on economic production and the associated decline in the standard of living. The prices of materials, products and transport are rising, causing a sharp increase in construction prices in the construction sector. Protecting the occupational health of workers and providing a safe environment for their work form an essential part of all construction projects. This article deals with the research into occupational health and safety on construction sites in the Czech Republic. The research described in this article was conducted in several successive steps. In the first step, a research design was drawn up, in the second step data collection was carried out, and in the third step data analysis and compilation of results were carried out. Qualitative approaches to data collection and analysis, namely in-depth interviews and the coding method, were used in the companies under research. Open-ended questions relating to respondents' opinions, experience and overall perceptions of the issues were developed in the preparatory phase of the research. The aim was to obtain credible answers to the questions raised. The research lasted for six months and involved 19 medium and large companies from the Czech Republic. The purpose of the research described in this article was to find out the situation focusing on providing the health and safety of workers during the implementation of construction. The costs of implementing the necessary measures in this field were also investigated.

ВИТРАТИ ЗАБУДОВНИКА ЖИТЛОВОГО БУДІВНИЦТВА: ВИДИ, СТРУКТУРА ТА ОБЛІКОВО-АНАЛІТИЧНЕ ВІДОБРАЖЕННЯ

The article focuses on the importance of accounting for expenses of a housing construction developer, since they affect the determination of the final cost of housing construction. The price attractiveness of the entire residential complex depends on the accuracy of the cost of housing construction and its distribution among individual residential real estate objects. The study shows the dynamics of the cost of 1 m2 of living space in terms of individual settlements, according to which it is determined that the highest cost of housing is in the capital, the lowest – in Kirovohrad Oblast. It is noted that in addition to the differentiation of the cost of residential m2 by oblast, the cost of 1 m2 of living space depends on the location of the residential complex (business centre, residential area of the city, etc.). It is argued that the cost of housing construction is the basic basis for determining the price of housing construction. The paper presents an indicative structure of costs for the construction of a residential complex. According to it, it is determined that the largest share in the total cost of financing housing construction is the cost of construction of the frame (40%) and the cost of finishing works. It is noted that over the past 10 years, the developer has spent a significant amount of money on the construction of a residential complex to improve the adjacent territory in order to increase the attractiveness of the residential complex. It is considered that the main production costs for the construction of a residential complex by a developer are accounted for in Account 23, and after the construction work is completed and the residential complex is put into operation, the amount of accumulated costs is written off and the sales value of the construction object as a whole, individual apartments and 1 m2 of living space is determined accordingly. It is determined that if a developer simultaneously implements several housing projects, general production costs arise, which are registered in Account 91 and distributed among individual construction projects. In addition to the costs directly related to the construction object, the customer also bears the costs associated with the management of the enterprise, which are recorded in Account 92, and the costs associated with the sale of apartments (Account 93), unless housing intermediaries are involved in this process.

Linking integrity with road pricing cause-and-effect model: A system dynamics simulation approach

With Malaysia's rapid urbanisation and continuous improvement of living standards, vehicle ownership and trip volume continue to grow. Increases in motor traffic in large cities and their environs result in a number of social, environmental, and economic issues, which are frequently attributable to the widespread use of automobiles as the primary mode of urban transportation. This exacerbates traffic congestion on the country's highways, particularly in urban areas such as Kuala Lumpur. This traffic congestion poses an ongoing threat to the sustainability of transport development. Thus, by using the system dynamics, this study establishes a cause-and-effect relationship regarding the implementation of road pricing as a tool for reducing congestion and a stepping stone for enhancing sustainability. Road pricing is a direct charge assessed to drivers who use the road network with the goal of reducing the number of private vehicles on the road during peak hours. The developed Causal Loop Diagram (CLD) composed of five subsystems: road congestion, road attractiveness, new road construction, public transportation, and road pricing. The road congestion, new road construction, and road pricing all encounter mutual reinforcement as a result of a variety of negative polarities. As a result, authorities should place a greater emphasis on these loopholes, as they will inevitably result in unexpected changes. Additionally, by incorporating holistic perspectives from previous works and experts in the field, CLD can aid in identifying the primary factors underlying the problem being studied. In future work, the developed CLD should be extended to the next stage of the SD model, dubbed stock-flow-diagram (SFD).

NEW QUASI-OPTIMAL ALGORITHMS OF ANTENNA SELECTION WITH LOW COMPLEXITY

Classical MIMO system model without antenna selection and MIMO system model with antenna selection are presented. New quasi-optimal low complexity algorithms of antenna selection are proposed for MIMO communication systems. These algorithms allow to achieve high spectral efficiency without significant increase of complexity. The statistical modeling method is used to evaluate the efficiency of the proposed algorithms and to compare their characteristics with the characteristics of the known algorithms of full and partial combined selection. The computational complexity of the proposed algorithms is evaluated and been compared with the computational complexity of the well-known algorithms of full and partial combined selection in low-order and high-order MIMO system configurations. The possibility of practical application of new quasi-optimal algorithms in real communication systems is clearly demonstrated by comparative analysis of error-rate performance in conjunction with an assessment of computational complexity. These applications provide significantly improving of the energy performance of MIMO communication systems and it allows to improve quality characteristics of communications for subscribers or could be exchanged to the lower price of construction and maintenance of real communication systems.

Forecasting Construction Price Index using Artificial Intelligence Models: Support Vector Machines and Radial Basis Function Neural Network

Estimation of Construction Price Index (CPI) is important for a market economy and it is a measure to manage construction investment costs. This is a tool to help organizations and individuals to reduce the effort and management of expenses for construction projects by reducing time of procedures for calculating and adjusting the total investment for the estimation and evaluation of contract price. The CPI is an indicator that reflects the level of construction price fluctuations of the type of work over time. In this study, the CPI data of Son La province, Vietnam from January 2016 to March 2022 (75 dataset) has been used for the modelling. Two Artificial Intelligence (AI) models namely Support Vector Machine (SVM) and Radial Basis Function Neural Network (RBFN) were proposed to predict the CPI based on limited input data. Performance of the models in correctly predicting CPI was evaluated using standard statistical indicators such as Coefficient of Determination (R2), Root Mean Square Error (RMSE) and Mean Absolute Error (MAE) based on the historical CPI data. The results show that performance of both the models is good in predicting CPI, but performance of the SVM model (R2 train = 0.915, R2 test = 0.811) is the best in comparison to RBFN model (R2 train = 0.985, R2 test = 0.733). The proposed AI models can be used to quickly and accurately predict the CPI of an area to help management agencies, investors, construction contractors for assessing cost of construction for the purchase and development of properties/ infrastructures.

Forecasting Construction Price Index using Artificial Intelligence Models: Support Vector Machines and Radial Basis Function Neural Network

Estimation of Construction Price Index (CPI) is important for a market economy and it is a measure to manage construction investment costs. This is a tool to help organizations and individuals to reduce the effort and management of expenses for construction projects by reducing time of procedures for calculating and adjusting the total investment for the estimation and evaluation of contract price. The CPI is an indicator that reflects the level of construction price fluctuations of the type of work over time. In this study, the CPI data of Son La province, Vietnam from January 2016 to March 2022 (75 dataset) has been used for the modelling. Two Artificial Intelligence (AI) models namely Support Vector Machine (SVM) and Radial Basis Function Neural Network (RBFN) were proposed to predict the CPI based on limited input data. Performance of the models in correctly predicting CPI was evaluated using standard statistical indicators such as Coefficient of Determination (R2), Root Mean Square Error (RMSE) and Mean Absolute Error (MAE) based on the historical CPI data. The results show that performance of both the models is good in predicting CPI, but performance of the SVM model (R2 train = 0.915, R2 test = 0.811) is the best in comparison to RBFN model (R2 train = 0.985, R2 test = 0.733). The proposed AI models can be used to quickly and accurately predict the CPI of an area to help management agencies, investors, construction contractors for assessing cost of construction for the purchase and development of properties/ infrastructures.

Forecasting Construction Price Index using Artificial Intelligence Models: Support Vector Machines and Radial Basis Function Neural Network

Estimation of Construction Price Index (CPI) is important for a market economy and it is a measure to manage construction investment costs. This is a tool to help organizations and individuals to reduce the effort and management of expenses for construction projects by reducing time of procedures for calculating and adjusting the total investment for the estimation and evaluation of contract price. The CPI is an indicator that reflects the level of construction price fluctuations of the type of work over time. In this study, the CPI data of Son La province, Vietnam from January 2016 to March 2022 (75 dataset) has been used for the modelling. Two Artificial Intelligence (AI) models namely Support Vector Machine (SVM) and Radial Basis Function Neural Network (RBFN) were proposed to predict the CPI based on limited input data. Performance of the models in correctly predicting CPI was evaluated using standard statistical indicators such as Coefficient of Determination (R2), Root Mean Square Error (RMSE) and Mean Absolute Error (MAE) based on the historical CPI data. The results show that performance of both the models is good in predicting CPI, but performance of the SVM model (R2 train = 0.915, R2 test = 0.811) is the best in comparison to RBFN model (R2 train = 0.985, R2 test = 0.733). The proposed AI models can be used to quickly and accurately predict the CPI of an area to help management agencies, investors, construction contractors for assessing cost of construction for the purchase and development of properties/ infrastructures.

Credible Cost Formation of a Construction Investment Project at the Stage of Design Documentation Development

Introduction. The credible cost formation mechanism of a construction investment project’s life cycle stages is considered. The cost of the project depends on diverse components: the duly designed project, the cost calculation method, the choice of suppliers and contractors, the construction time frame, etc. All calculations are based on the estimated cost of the project made at the design stage.Materials and methods. Transition to the input costing method turns to be an advancement in determining the estimated cost of construction at the design stage. The main problem here is the lack of a unified database providing the data on the cost of resources at the current price level for each region. The proposed solution is transferring the functions of replenishing the Federal State Information System of Pricing in Construction (ФГИС ЦС) database from the Ministry of Construction, Housing and Utilities of the Russian Federation to the regions of Russia.Results. The transition to the input costing method will allow the regions to hold the information on the credible estimated cost of facilities planned to be built in the forthcoming years. The increasing amount of standard design projects will enable solving a number of cost management issues at the design stage. The projects that proved to be successful can be reused many times because all possible errors were debugged, the proposed solutions were tested on the facilities already built. The use of the standard design projects will allow to prepare and verify the project design documentation quicker. The time assigned for designing will reduce and no additional questions will arise in the process of construction. The application of information modeling technologies fosters the projects’ quality enhancement.Discussion and conclusion. The mechanisms proposed by the authors will enable projects’ quality enhancement, reduce the cost and timing of design works, as well as make it possible to determine the credible cost of construction at the design stage, which is the basis for determining the volume of investment and calculating the cost of a facility at the stages of planning and implementation of the project.

Dynamics of apartment building renovation investment costs based on Estonian reovation grant scheme

While energy prices have increased substantially recently, we also observe that renovation prices have increased twofold wihtin last decade. This could seriously affect the motivation to invest in building renovations because of negative yield and in turn jeopardise the carbon reduction plans. Therefore, we attempt to show some evidence of renovation cost dynamics based on sample of 112 apartment buildings which received state support for deep energy renovations during 2010 and 2017. We found that investments started out very cautiously in 2010. Eventually renovations were embraced as rational investment and renovations ambitions grow with prices. Construction price index grow during the~study period 20 percent and renovations over two times. We could not confirm the popular hypothesis that demand pressure will also increase prices. However, most significant increase of renovation price was due to the additional construction works and quality improvement. This was especially evident after the redesign of grant rules in 2015 which allowed more indirect construction works to be eligible for the subsidy.

The main transmission paths of price fluctuations for tungsten products along the industry chain

Tungsten is deemed a critical raw material by many nations, given its irreplaceable use in industrial and military applications. In particular, China has high share of global tungsten supply. In this research, we study the tungsten product price fluctuation transmission of trade activities between China domestic market and international trade market from the industry chain perspective. Specifically, we embed the Chinese domestic market into the international trade market to construct price fluctuation transmission network (network-in-network) in tungsten industry chain. Drawing on the analysis ideas of the input-output price impact model, the total transmission impact of the tungsten product price fluctuation is revealed. We then combine the structural path decomposition method and the network cascade theory to identify the main transmission path of tungsten product price fluctuation. The results show that the total transmission impact of price fluctuation between the international trade relationships of cemented carbide in the tungsten industry chain is large. The cumulative transmission of the 3-step price fluctuation transmission paths of tungsten products between the Chinese domestic market and the international trade market accounts for more than 80% of the total transmission. The main transmission path of price fluctuations in the tungsten industry chain exists in the same product. Our research will provide effective information for governments to develop measures to control price fluctuation, thereby minimizing the losses from price fluctuation and transmission.

Do emerging art market segments have their own price dynamics? Evidence from the Chinese art market

This study examines the nonlinear dynamics in the price series of Chinese art market segments between 2000 and 2019. We employ a hedonic price model to construct price indices of Chinese art market segments and analyze the nonlinearities and regime-switching properties of the individual segment using a series of Markov switching model specifications. We argue that occasional shocks would only temporarily alter their data-generating processes and have transitory effects. Moreover, we investigate the impact of COVID-19 on Chinese art market segments. Our findings have implications for market participants in identifying the price characteristics and dynamic behavior of art market segments.

Practical tools of an integrated construction cost management system

Introduction. The problem of effective construction cost management can arise at any stage of a construction project, and it becomes particularly relevant amid economic instability. Solving problems of accurate assessment and control of construction costs is vital for all participants in the investment and construction process. The construction cost management process encompasses the following interrelated sub-processes: identification of reliable construction costs at stages of preliminary and working design; construction cost control at further stages, including the drafting of working design documentation and facility construction. The subject of research is a set of practical tools that solve construction cost management problems throughout the lifecycle of a construction facility.
 Materials and methods. Data on cost analysis processes, methods and tools were collected, systematized and analyzed in the course of the study. A systematic approach, analysis and synthesis methods, expert and comparative assessment methods were applied.
 Results. The main principles, underlying the author’s approach, as well as a set of practical tools designed to manage the cost of construction of a capital construction facility were proposed in reliance on the analysis, conducted by the author.
 Conclusions. The author proposes construction cost management methods and practical tools that can be applied in the course of implementation of investment and construction projects that have different degrees of complexity.
 KEYWORDS: planning, management, pricing in construction, construction cost, design documentation, working design, construction

Retrospective Analysis of Common Faults and Maintenance Strategies of Medical Electronic Endoscope

Medical electronic endoscope is one of the indispensable tools in medical diagnosis and treatment. With the development of science and technology, electronic endoscope has higher safety and accuracy than traditional optical endoscope. Due to the sophisticated construction and high price, hospitals spend a lot of money on maintenance every year. In order to prolong the working life of electronic endoscope, reduce the incidence of artificial failure and save hospital costs, this study made a retrospective analysis on the common faults of electronic endoscope, and summarized the maintenance strategies for reference.

SURVEI BIAYA INVESTASI AWAL PLTS ATAP DI INDONESIA TAHUN 2022

The slow development of New and Renewable Energy such as solar energy in Indonesia are influenced by land acquisition and the high initial investment costs, but lately the cost of solar power plant development prices has been decreasing globally year by year. This research will review the development of PV mini-grid investment costs in Indonesia and this information can be used as a source of information for stakeholders to understand the development of PV mini-grid prices in 2022. The price of the solar power plant construction was obtained through a survey from the e-commerce website. From the survey, 55 data has been obtained related to the price of solar power plant rooftop construction in Indonesia with a capacity scale of 1 KWp to 10 KWp with price range from Rp. 14,000,000 to Rp. 207,000,000. The average initial investment cost for the construction of a PLTS Roof in Indonesia with a capacity of <2 KWp is Rp. 22,954,000, <3 KWp is Rp. 42.838.000, <4 KWp is Rp. 60,716,000, <5 KWp is Rp. 64,473,000, <6 KWp is Rp. 82,986,000, 6 KWp is Rp. 102,380,000, 7 KWp is Rp. 117,580,000, 8 KWp is Rp. 140,980,000, 9 KWp is Rp. 156.580.000, and 10 KWp is Rp. 151,820,000.

Evaluation of Concrete with Glass and Coconut Shell in Place of Coarse Aggregate and Partially Replaced Cement

Supplies for building are getting more expensive every day. The two essential components of the concrete are pozzolanic material and crushed rock. These days, a lot of scientists are investigating building materials that could both raise and lower construction prices. It has been shown that using some industrial leftovers and agricultural residues as construction materials, particularly in underdeveloped countries, provide a number of real advantages. It was discovered that there is a lot of potential for using coconut shells to replace part of the aggregate used in concrete. The current work consists solely of a compilation of data related to GFRGC and earlier studies conducted by other academics. Millions of tonnes of glass waste are created annually.