The calculation of a price for the engineering services

According to the paragraph 4 of the Statute Concerning the Client (Developer) in Construction, approved by the Order of Minstrojarhitektura of the Republic of Belarus dated from 22.06.1999 #174, the developer, the client have the right to attract an engineer (an engineering organization) on a contract basis in established by the legislation of the Republic of Belarus order for rendering the engineering services or complex management of an investment project. In this case the engineering organization carries out the activity in the interests of the developer, the client on behalf of them and at their expense.

In this connection the question of procedure for the determination of the price (cost) for engineering services is actual.

There are 3 principal methods of rate calculation on engineering services:

  • 1 at the rate of a fixed contractual sum defined under the agreement of parties;
  • 2 at the rate of a certain percent from construction cost of an object coordinated by parties;
  • 3 proceeding from expenses of working hours of the employees occupied with project support by multiplication on cost of 1 person-hour agreed by the parties at the conclusion of contract.

Besides the methods specified above can be used in combination with themselves, and also the additional factors which influence on the final rate of the price for engineering services.

The fixed contractual price for engineering services can be used both in case of complex management of an investment project and in case of performance of concrete volume of services at one or several stages of project implementation.

The percent from cost as base for definition of the price for services is used, as a rule, in complex management of a project. As the additional factor which influences on increase or reduction of the commission rate for the engineering organization under the agreement of parties, a certain cost of construction unit of object area in the process of construction management can be established. For instance, economizing means of the Client the engineering organization gets the agreed percent from the cost and a bonus for saving, in case of excess of construction cost the rate of commission decreases on the agreed rate.

The interest rate on project management can vary from 3 % to 7 % from construction cost, depending on its amount. It is not a secret that timing for projects management of different size, especially at the stage of collection of approvals are almost identical – the approval for construction of a shop of the area 200 sq.m. and an administrative centre of the area 6 000 sq.m. takes almost the same amount of time. In this connection, the more area of a planned object, the less an interest rate on its construction management is, and vice versa.

Working hours expenses as the basis for calculation of the price for engineering services are used, as a rule, at performance of some certain actions at one or several stages of investment project implementation. In these cases the engineering organization on the basis of the data of the employees’ working hours accounting in a cut of projects and the cost of 1 person-hour agreed with the Client counts the price which is subject to payment. Thus the Client already gets the information about approximate price at the stage of the conclusion of an agreement: the Company «CI plus» has got the considerable database about expenditures of labor on performance of various operations, having based on the experience gained previously on rendering of similar services.

The individual approach to each client practiced by the company «CI plus» is expressed, including and in methods of definition of commission rate for the engineering company on the rendered services, with reference to a concrete situation.

For calculation of cost of our services in management of your project, its further discussion with a view of achievement of the result which will satisfy both parties, a meeting with the representative of the company «CI plus» with obligatory consideration of available documents is recommended.

Contact the company «CI plus» for the organization of a meeting and negotiations.

Our advantages

What differs us from others?

First of all, the work principles! They are:

  • Accurate specialization.
  • Aspiration to maximum optimization of expenses without any damage to quality.
  • The individual approach to every Client.
  • 100 % control over design.
  • Reaction efficiency to Client’s inquiry.
  • Maximum awareness of the Client of project progress.
  • Confidentiality of your information.