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3.1. Errors in the estimate documentation and their consequences – losses

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1. Errors in units or decimal places

Not a very common mistake, but sometimes people make mistakes in the number of decimal places or units of measure. For example, meters – meters, are confused with tens or hundreds of meters – 10 meters, 100 meters, forgetting to divide or multiply the value by 10 or 100, respectively, less often – by 1000.

On one of the objects worth about 700 million rubles. due to such errors, the total estimate turned out to be 90 million rubles. more than it should have been. That is, in fact, the estimates included hundreds or thousands of times more work or materials than can be applied in principle at this facility.

For example, instead of the actual 26 square meters of plaster, the volume was indicated as 2,600 square meters, and instead of the actual 350 kilograms of reinforcement, 350 tons. The case is outstanding, but absolutely real.

Thus, the total cost of these errors amounted to about 15% of the total cost estimate. All these works could not be performed, although they were in the estimate, so we had to bring the estimate in line and terminate the contract for the amount of erroneously overestimated volumes. All this certainly affected the profitability and the level of profitability of the object (the ratio of profit to the cost of work as a percentage).

As a rule, those who use ready-made estimate documentation in their work notice such things, but those who draw it up do not notice. It is very bad when such moments are clarified already in the process of execution of the contract, when it remains only to state the fact of budget cuts.

It is quite easy to detect errors in estimates if they are small – on 3-5 sheets, and it is almost impossible to immediately notice them if the estimate exceeds 50, 100 or 500 pages.

However, there are benefits to be gained from this situation as well. Since funds have already been allocated for construction work, especially if the object is budgetary, the Customer can go to a meeting and spend the saved funds on other work that is necessary or on the purchase of any equipment with its installation, within the freed amount of within the framework of the contract already concluded with you, if it does not contain any prohibitions on this. As a rule, the amount of changes under government contracts cannot exceed 10% of the estimated cost.

2. Errors in the types of work

The second group of mistakes is when they forget to accidentally add some types of work to the estimate. Sometimes such errors violate the technological sequence of work as a whole, which can also lead to losses.

Examples:

We had a facility where work was to be done to strengthen the wall by installing buttresses. Their technological sequence was as follows: earthworks (clearing the work site from the ground, digging pits with an excavator and manually to a depth of 2.5 m), laying footings, installing metal frames and formwork, pouring them with concrete, backfilling pits, compacting soil. So, in the estimate, the very initial earthworks in the amount of approximately 300 cubic meters were completely absent .

You must mount any equipment in the building. But the dimensions of this equipment exceed any maximum openings in the walls; accordingly, it may be physically impossible to bring this equipment inside without temporarily dismantling sections of the walls to increase the openings in them. Not every designer or estimator can foresee such things. Therefore, inspect the place of work before performing work or concluding a contract.

The worst thing is when you have already appointed people, hired equipment and started work, and only then found out everything, because the customer, especially if it is a state customer, may simply not have extra money that he can allocate to complete the data works and all attempts to humanly resolve this issue may lead nowhere . Sue him or incur losses, but do the work, or terminate the contract – this decision is up to you.

In any case, remember that all hidden work must be recorded in acts, and if you completed work today that was not included in the estimate, just so as not to stop all construction or some part of it, then the absence of acts of hidden work, protocols for considering these commission issues, etc. will complicate your situation if you decide to prove your case in court or in any other way to resolve this issue.

There are also other situations. I was once asked to mount a turnkey door. I mounted and forgot about this business until the customer called me and asked “Where are the slopes?”. In his opinion, slopes were included in the concept of “turnkey”, but in my opinion , if they were not mentioned in principle, they were not in the “turnkey”, but there was only a door, its delivery and installation. Speak every little thing, and better reflect in the contracts.

3. Errors in materials taken into account or not taken into account by the estimate

In order to avoid misunderstandings, so that both the contractor and the customer clearly understand what is included in the cost of work and what is not – i.e. whether materials are included in the cost of work, when drawing up an estimate, it is necessary to accurately describe the materials used and their quantity. If you received an estimate for consideration, deal with this issue paramountly.

So, there are two types of estimated or contractual prices:

1. Prices without the cost of materials;

2. Prices including the cost of materials.

Most often, prices that include the cost of materials are used in state estimates, these are the so-called FER (federal) or TER (territorial) unit prices. They facilitate the accounting of expenses of budgetary organizations, budget planning, and are also adjusted for inflation, etc.

Let's compare two types of rates:

Prices without the cost of materials:

FER15-01-090-03 (approved by the Order of the Ministry of Construction of Russia dated December 30, 2016 No. 1039 / pr ) – “Arrangement of ventilated facades with porcelain tile cladding: with a heat-insulating layer”.

FER11-01-027-02 – “Installation of cement mortar coatings from ceramic tiles for multi-color floors”.

Prices including the cost of materials:

FER15-04-012-02 – "Painting of facades from scaffolding with surface preparation: organosilicon".

FER12-01-010-01 – “Installation of small coverings (firewalls, parapets, overhangs, etc.) from galvanized sheet steel (adjoining the profiled sheet to the wall)”.

As you can see, it is impossible to determine visually only by the name of the price what exactly it may include: only work or work and materials. Therefore, if materials are not indicated in the estimate, contact the estimator for help so that he “unfolds” the price and shows what exactly it includes – there is such a technical possibility in the “Grand Estimate”, etc. programs, or look for their decoding on the Internet or in specialized directories.

4. Errors in the number of materials

Example:

The project provides for the insulation of the facade with a 140 mm thick insulation: an inner layer of 100 mm and an outer layer of 40 mm. The total scope of works is about 2000 sq.m. Those. the total amount of insulation will be: 2000 sq.m. x 0.14 m = 280 cubic meters . The estimate turned out to indicate the volume of insulation 380 cubic meters , i.e. with an area of 2000 sq.m. its thickness should be 190 mm, which is 50 mm. more than design thickness. At the same time , from 2000 sq.m. the volume of excess insulation amounted to 100 cubic meters . So someone's mistake reduced the cost of work and materials by about 100 cubic meters . x 8000 rub. = 800,000 rubles, and zeroed out the profit.

Provided that the brackets of the ventilated facade have already been mounted according to the project with a projection of 200 mm. from the wall, it was no longer possible to mount an extra insulation, so the customer terminated the contract for the cost of the insulation mistakenly included in the estimate.

Recommendations:

Absolutely always compare the design data with the estimate before deciding to conclude a contract.

Construction for dummies in Russia: save money and mind

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