Know about the basic elements for the control of building construction cost

If you are planning for buildingconstruction, there are many elements you will need to build a perfect house. Let us find out about all elements.

Direct Labor:

It is all the house construction workers that belong to the payroll of the construction companies (carpenters, welders, electricians, etc.). It expressly excludes the personnel hired by the contract for the execution of subcontracts.

Construction equipment and tools:

They are all the equipment and tools necessary to execute the construction activities and that may be owned or leased by the construction company. Any equipment provided by the client is expressly excluded.

Permanent equipment contributed by the constructor:

Are all those teams that become a definitive part of the built work, since they are installed for that purpose (pumps, electrical panels, fire extinguishing equipment, boilers, elevators and/or escalators, etc.). Any equipment provided by the client is expressly excluded.

Subcontracts of labor:

They represent all the personnel hired by the contractor for the purpose of installing permanent building materials or equipment contributed by the construction company or by the client.

These personnel work with equipment and/or tools of the company or else provide their own tools and equipment, according to the contract.

Subcontracts at all costs:

They represent all portions of the work contracted by the builder for the purpose of installing permanent materials or equipment provided by subcontracted personnel who work with their own equipment and tools.

Indirects of operation:

They represent all those expenses of the company, required for its operation as a business unit, which is partially allocated to each project, apportioning their amount among the different works built by the company (manager, administrator, office rental, etc.). They are usually expressed as a fixed percentage of the sum of all previous costs.

The Catalog of Accounts, a requirement of the Cost Control System:

For the purposes of the correct operation of the construction cost calculator, you must have a Catalog of Accounts. This is no more than the subdivision of the work into cost centers, both for estimation purposes and for control purposes,

That is, it represents the list of project cost accounts and defines the level of detail that will be used to carry out the project.

List of accounts is defined in terms of a numerical or alphanumeric coding system of the individual concepts that are set for estimating and controlling costs.

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