Construction and installation project cost components?

Construction and installation project fee composition is very important to understand each part of it, to distinguish between the differences between each detail, in order to do the best when needed. Zhongda consulting on the construction and installation project fee composition for you in detail.

Construction and installation project fee is divided according to the cost components: labor, materials (including engineering equipment, the same below) fees, construction machinery and equipment costs, enterprise management fees, profits, fees and taxes. Among them, labor cost, material cost, construction machinery and equipment use fee, enterprise management fee and profit are included in the cost of sub-projects, measures project cost, other project costs (see attached table).

(a) labor costs: refers to the composition of the total wage bill, paid to the production workers engaged in the construction of building and installation works and ancillary production unit workers of the costs. Contents include:

1. Hourly or piecework wages: refers to the hourly wage rates and working hours or on the work done by piecework unit price paid to the individual labor compensation.

2. Bonus: refers to the labor remuneration paid to individuals for excess labor and increased income and expenditure. Such as savings awards, labor competition awards.

3. Allowances and subsidies: refers to the special or additional labor consumption to compensate for employees and other special reasons for the payment of allowances to individuals, as well as in order to ensure that the level of wages of employees are not affected by the price of goods and services paid to the individual price subsidies. Such as mobile construction allowances, special area construction allowances, temporary allowances for high-temperature (cold) operations, and high-altitude allowances.

4. Overtime and overtime wages: refers to overtime wages paid in accordance with the regulations for work on statutory holidays and overtime wages for extended work outside the statutory daily working hours.

5. Wages paid under special circumstances: refers to wages paid at the hourly wage rate or a certain percentage of the hourly wage rate for reasons such as illness, work injury, maternity leave, family planning leave, marriage and bereavement leave, personal leave, family visit leave, periodic leave, work stoppage for study, and implementation of state or social obligations in accordance with the provisions of the state laws, regulations, and policies.

(ii) material costs: refers to the cost of raw materials, auxiliary materials, accessories, parts, semi-finished or finished products, and construction equipment consumed during the construction process. Contents include:

1. original price of materials: refers to the materials, engineering equipment, factory prices or merchants supply prices.

2. Transportation and miscellaneous expenses: refers to all the costs incurred in the transportation of materials, engineering equipment from the source to the site warehouse or designated storage place.

3. Transportation wear and tear: refers to the unavoidable loss of materials in the process of transportation and loading and unloading.

4. Procurement and storage costs: refers to the organization of procurement, supply and storage of materials, engineering equipment in the process of the costs required. Including procurement costs, storage costs, site storage costs, storage losses.

Engineering equipment means electromechanical equipment, metal structural equipment, instrumentation and other similar equipment and fixtures which form or are planned to form part of the permanent works.

(c) Construction Machinery and Equipment Use Fee: refers to the use fee of construction machinery, instruments and apparatus or their rental fee incurred for construction operations.

1. Construction machinery costs: construction machinery consumption multiplied by construction machinery unit price, construction machinery unit price should be composed of the following seven costs:

(1) depreciation: refers to the construction machinery in the stipulated useful life, successive recovery of its original value of the cost.

(2) overhaul costs: refers to the construction machinery according to the specified overhaul interval shift to carry out the necessary overhaul, in order to restore its normal function of the costs required.

(3) regular repair costs: refers to construction machinery in addition to overhaul of all levels of maintenance and temporary troubleshooting costs. Including the normal operation of machinery to ensure the replacement of equipment and randomly equipped with the amortization of tools and accessories and maintenance costs, machinery running in the daily maintenance of lubrication and wipe the material costs and machinery during the stagnation of the maintenance and maintenance costs and so on.

(4) dismantling and off-site freight: dismantling refers to the construction machinery (except large machinery) on-site installation and dismantling of labor, materials, machinery and commissioning costs required, as well as the depreciation of machinery and auxiliary facilities, erection, dismantling, etc.; off-site freight refers to the construction machinery, as a whole or in parts from the place of parking to the construction site or by a construction site to another construction site of the transportation, loading and unloading, transportation, loading and unloading, auxiliary materials and wiring, etc.

(5) Labor cost: the labor cost of the driver (stoker) and other operators on the machine.

(6) fuel and power costs: the construction machinery in the operation of the operation of all kinds of fuel and water, electricity and so on.

(7) taxes and fees: refers to the construction machinery in accordance with state regulations should pay the vehicle and vessel use tax, insurance premiums and annual inspection fees.

2. Instruments and meters use fee: refers to the amortization and maintenance cost of the instruments and meters required to be used in the construction of the project.

(d) enterprise management fee: refers to the construction and installation enterprises to organize construction production and business management costs. Contents include:

1. management personnel wages: refers to the prescribed hourly wages paid to management personnel, bonuses, allowances and subsidies, overtime and overtime wages and wages paid under special circumstances.

2. Office expenses: refers to the costs of stationery, paper, billing forms, printing, postage, books and newspapers, office software, on-site monitoring, meetings, water and electricity, water heating and cooling (including on-site temporary dormitory heating and cooling), etc., for business management office.

3. Travel and Transportation Expenses: refers to the travel expenses of employees on official business trips and job transfers, the cost of residence subsidies, the cost of in-town transportation and missed meal subsidies, the cost of staff visiting relatives, the cost of labor force recruitment, the one-time cost of staff retirement and retirement, the cost of medical treatment for injured workers, the cost of site transfers, as well as the cost of fuel and oil for the means of transportation used by the management, and so on.

4. Fixed Assets Utilization Fee: It refers to the depreciation, overhaul, maintenance or rental fee of the houses, equipments, instruments, etc. belonging to the fixed assets used by the management and experimental departments as well as the affiliated production units.

5. Tools and appliances use: refers to the acquisition, maintenance and amortization costs of tools, appliances, furniture, transportation and inspection, testing, mapping, fire-fighting appliances, etc. not belonging to fixed assets used in the construction production and management of the enterprise.

6. Labor Insurance and Employee Welfare Expenses: refers to employee severance pay paid by the enterprise, funds paid to retired cadres in accordance with the regulations, collective welfare expenses, summer heat-prevention, winter heating subsidies, and commuting transportation subsidies.

7. Labor protection expenses: is the enterprise in accordance with the provisions of the labor protection supplies issued by the expenditure. Such as work clothes, gloves, heat stroke drinks and health care costs of construction in an environment that hinders health.

8. Inspection and testing costs: refers to the construction company in accordance with the relevant standards, the construction and materials, components and building installations for general identification, inspection costs incurred, including self-set up the laboratory for the test of the materials used in the test and other costs. Does not include new structures, new materials, test fees, destructive testing of components and other special requirements of the inspection and testing costs and construction units commissioned testing organizations to test the costs of such testing costs incurred by the construction unit in the construction of other costs. However, if the materials provided by the construction enterprise with qualified certificates are tested and failed, the cost of such testing shall be paid by the construction enterprise.

9. Labor Union Funds: refers to the labor union funds of the enterprise in proportion to the total wages of all employees as stipulated in the Labor Union Law.

10. Employee education expenses: refers to the expenses accrued by the enterprise in accordance with the proportion of the total wages of all employees, which are incurred by the enterprise for the training of employees in professional and technical and vocational skills, continuing education of professional and technical personnel, appraisal of the employees' vocational skills, certification of vocational qualifications, and all kinds of cultural education of the employees according to the needs.

11. Property insurance premiums: refers to the insurance costs of property and vehicles used for construction management.

12. Finance costs: refers to the various costs incurred by the enterprise to raise funds for construction and production or to provide advance payment guarantee, performance guarantee, and guarantee for the payment of employee wages.

13. Taxes: refers to the property tax, vehicle and vessel use tax, land use tax, stamp duty, etc. paid by the enterprise according to regulations.

14. Others: including technology transfer fees, technology development fees, bidding fees, business hospitality, green fees, advertising fees, notary fees, legal counseling fees, auditing fees, consulting fees, insurance fees, etc..

(E) Profit: refers to the profit gained by the construction enterprise by completing the contracted works.

(F) Fees and charges: refers to the fees and charges that must be paid or accrued according to the national laws and regulations and stipulated by the provincial government and relevant provincial authorities. Including:

1. Social insurance premiums

(1) Pension insurance premiums: refers to the basic pension insurance premiums paid by the enterprise for its employees in accordance with the prescribed standards.

(2) Unemployment insurance premiums: refers to the unemployment insurance premiums paid by enterprises for their employees in accordance with the prescribed standards.

(3) Medical insurance premiums: refers to the basic medical insurance premiums paid by enterprises for their employees in accordance with the prescribed standards.

(4) Maternity insurance premiums: refers to the maternity insurance premiums paid by enterprises for their employees in accordance with the prescribed standards.

(5) Worker's compensation insurance premiums: refers to the worker's compensation insurance premiums paid by enterprises for their employees in accordance with the prescribed standards.

2. Housing provident fund: refers to the housing provident fund paid by the enterprise for the employees in accordance with the prescribed standards.

3. Engineering Sewage Fee: refers to the construction site engineering sewage fee paid in accordance with regulations.

Other fees and charges that should be listed but are not included are charged according to actual occurrence.

(7) Taxes: refers to the business tax, urban maintenance and construction tax, education surcharge and local education surcharge that should be included in the cost of construction and installation works as stipulated in the national tax law.

More about engineering/service/procurement bid writing and production, to enhance the winning rate, you can click on the bottom of the official website customer service free consultation:/#/?source=bdzd