- development, adjustment and verification of estimates (SD) – desk work with documentation in which construction costs are determined. It contains justification of expenses: labor, material and technical. As part of the project documentation, a separate item is assigned to the SD, according to Resolution No. 87;
- development, analysis and adjustment of financial models of projects (FM) — a set of analytical measures to determine the dependence of expenses and income and assess the financial efficiency of the project, taking into account the current and planned economic situation in the market;
- valuation of real estate objects — the process of determining the value of an object or individual rights in relation to the assessed real estate object. The valuation of real estate includes: determining the value of ownership or other rights, for example, lease rights, use rights, etc. in relation to various real estate objects.
Pricing is a fundamental aspect of product management. Price is the primary element that generates income or determines costs. Reasonable cost formation and adequate price planning affect the successful sale of manufactured products or services, allow you to predict the ratio of costs and revenues, minimize cost risks.
1) Estimated documentation. One of the main objectives of the development of estimate documentation is the determination of the estimated cost. It is understood as the planned amount of costs for construction, major repairs or reconstruction of the object in accordance with the developed project. The estimated price is necessary for:
- cost planning;
- distribution of capital investments by stages;
- search for sources of financing and attraction of investments;
- formation of the contract price;
- cost analysis during and after completion of work;
- payment for the purchase, delivery and configuration of machinery and equipment;
- conducting interim settlements between the customer and the contractor.
2) Financial models. Financial modeling is necessary when preparing an idea of any scale. During the implementation of the project, there is a possibility of unplanned costs and losses. The presence of a financial model allows you to assess and pre-empt risks in advance, in addition, FM allows for use in such situations:
- identification of the most expensive positions and assessment of opportunities for savings;
- preliminary budget planning and the possibility of using a more flexible approach to implementation;
- application as a justification for attracting investments and credit funds.
3) Real estate valuation. One of the stages of a purchase and sale / lease transaction, registration of a mortgage, pledge or forced alienation, is the valuation of real estate, which allows you to find out its objective value. It gives the bank the opportunity to determine the liquidity of the object, guarantees profitability and expediency to the parties to the transaction, and in case of alienation allows to estimate the amount of compensation measures.
The market value of the valuation object is the most probable price at which the valuation object can be alienated on the open market at the valuation date in a competitive environment when the parties to the transaction act reasonably, having all the necessary information, and the value of the transaction price does not reflect any extraordinary circumstances, that is, when:
- one of the parties to the transaction is not obliged to alienate the object of evaluation, and the other party is not obliged to accept execution;
- the parties to the transaction are well aware of the subject of the transaction and act in their own interests;
- the object of evaluation is presented on the open market through a public offer, typical for similar objects of evaluation;
- the transaction price represents a reasonable remuneration for the object of evaluation and there was no coercion to make a transaction with respect to the parties to the transaction from anyone’s side;
- payment for the object of evaluation is expressed in monetary form.
Investment value — the value of an object for a specific person or group of persons with the established investment purposes of using the object of evaluation. The investment value can be used to measure the effectiveness of investments to generate income in the form of rent and value gains.
The liquidation value of an object is an estimated value reflecting the most probable price at which this object can be alienated during the exposure period (the period of time from putting the object on the market to the receipt of funds), taking into account the reduction of the typical exposure period for market conditions, in conditions when the seller is forced to make a transaction for the alienation of property.
The cadastral value of an object is determined by the methods of mass valuation of the market value established and approved in accordance with the legislation regulating the cadastral valuation, in particular, for tax purposes.
OUR EXPERIENCE IN PRICING
1) Estimated documentation. The development of estimate documentation is not regulated by law. The approach depends on the terms of the contract and the current economic situation. Basic methods of calculating the estimated cost:
- resource – the calculation is based on current prices and tariffs of resources. The method makes it possible to quickly recalculate the estimated cost to new prices;
- resource-index – resource method is combined with a system of resource price indices. Indices are the ratio of current prices to base prices;
- basic-index – does not imply a separate determination of resource consumption in natural terms;
- basic compensation – based on the basic cost, taking into account the expected changes in prices and tariffs.
2) Financial models. In the process of developing financial models, the costs assumed by the budget are distributed at the initial stage. As a rule, the following information is indicated in the expenditure part:
- commercial and organizational expenses – utilities, security, marketing, maintenance of the facility;
- expenses for work and staff maintenance;
- rental of offices, land plots, construction equipment, transport;
- purchase and delivery of inventory items, services and works related to the project;
- logistics costs;
- repayment of accounts payable to banks and leasing companies;
- tax burden;
- currency conversion, inflation and discount rates.
After the expenditure part is specified, information about planned/projected receipts within the framework of project implementation is entered into the financial model. As a rule, the following information is indicated in the revenue part:
- receipt of credit funds or investments;
- rental and sale of finished products (goods, services, real estate);
- interest income from deposits and deposits;
- VAT refund;
- other sources of income.
Based on the results of the formation of financial models, an analytical part is performed, including:
- break-even analysis – the ratio of costs and the initial budget;
- summary of expenses and income;
- cash flow analysis;
- assessment of the correctness of the distribution of flows and costs in comparison with statistical data and market indicators;
- evaluation of the financial efficiency of the project;
- balance summary.
- comparative approach — a set of methods for estimating the value of an object based on comparing the object of evaluation with analogues for which there is information about prices. An analog is an object that is similar in basic economic, material, technical and other characteristics that determine its value;
- cost approach — a set of valuation methods in which the cost of an object is equal to the sum of the cost of a land plot and the cost of reproduction (replacement) of all improvements, minus accumulated depreciation, and the cost of liabilities, depends on the cost of creating a similar object. It is used to evaluate detached buildings, households, enterprises;
- revenue approach – based on determining the value of the object based on the calculation of expected income from the ownership (use) of this object, allows you to predict the value of the object in the future.
The cost of pricing works depends on the volume, tasks and complex of works necessary for the implementation of the intended goals, and is calculated individually for each project.
EUCLID strives to select the optimal set of services for its clients, contributing to the achievement of high-quality results and effective indicators at a reasonable cost level and meeting deadlines. A flexible system of cumulative discounts is provided for our regular partners, which can reach up to 30%.
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