Shenzhen Chengjie Construction Engineering Consulting

That is the construction price of the project. It has two meanings. The first meaning refers to the total cost of constructing a certain project. (Owner’s perspective) The second meaning is the completion of a project, the expected or actual price of the construction and installation project and the total price of the construction project formed in transaction activities such as the land market, equipment market, technical labor market and contracting market.
.Composition of the direct construction cost of the project The direct construction cost of the project mainly includes land acquisition fee, off-site facility fee, site fee, process equipment fee, etc. Since the project building must be fixed in one place and connected to the land, the direct construction cost of the project should include land acquisition fees and other local costs. Special attention should be paid to the fact that other local costs are direct costs of project construction, and attention should also be paid to their components.
. Project indirect construction costs Project indirect construction costs mainly include project management fees, commissioning fees, owner's administrative fees, pre-production costs, freight and other costs not directly caused by the construction process.
. Contingency funds contingency funds consist of reserves for unspecified items and unforeseen reserves. Reserves for unspecified items are used to cover expenses that are almost certain to be incurred and are an essential component of estimates. The unforeseen reserve is simply a reserve and may not be used.
.Construction Cost Escalation Expenses Generally, the cut-off date used in the estimate that forms the basis for wage rates, materials, and equipment prices is the estimate date. Adjustments must be made to this date or known cost basis to compensate for unknown price increases until the end of the project.
The cost of construction projects varies according to their nature, and generally consists of eight parts: construction engineering fees, equipment installation engineering fees, equipment purchase fees, tools and production furniture purchase fees, and other project construction costs. That is, construction project fees, equipment purchase fees, equipment installation project fees, tools, appliances and production furniture purchase fees, other projects and expenses, reserve fees, fixed assets investment direction adjustment tax, construction period investment loan interest.