Introduction
Cost estimating is the most important component of the construction industry, as required for financial and economic justification of the design and works in progress. The quality of cost estimates impacts on accuracy of the budget planning, the projects profitability, and transparency of expenditures. In the Republic of Uzbekistan, the cost estimating is regulated by a number of regulatory legal acts, including the Urban Planning Code, decisions of the Cabinet of Ministers and methodological guidelines of the Ministry of Construction and Housing and Communal Services.
The demand for quantity surveyor constantly grows due to active infrastructure development and implementation of government programs in the construction industry, with supporting the construction development by reforms in the field of urban planning law, cost estimate and digitalization of the project documentation. In this regard, the profession of a quantity surveyor is becoming particularly significant.
This article will help to understand what a cost estimating is, who a quantity surveyor is, and how to master this profession from the very beginning, given the specifics of the Uzbek law.
1. What is a cost estimate? What is a cost estimating?
Cost estimate is a document that defines the minimum amount of money required to complete the construction.
The cost estimate contains the data on the need for materials, machinery and equipment used in the construction, need for human resources in man-hours, overhead costs and estimated profits.
Cost estimating is the process of preparing the cost estimate documentation to determine the cost of construction based on approved standards.
The general information about the main documents regulating the cost estimating of the Republic of Uzbekistan are as follows:
Urban Planning Code of the Republic of Uzbekistan (Law of the Republic of Uzbekistan, dated 02/22/2021, No. ZRU-676)
Defines the legal and organizational foundations for the urban planning, including:
a) requirements for design and estimate documentation;
b) rules for determining the initial (maximum) contract price;
c) powers of the state expertise authorities.
ShNK 4.01.16-09 "Rules for determining the contractual current cost of construction" - approved by the Order of the State Committee of the Republic of Uzbekistan for Architecture and Construction No. 83 dated July 30, 2009
(*ShNC means Urban planning standards and regulations").
"Expertise of urban planning documentation" State Unitary Enterprise[1] under the Ministry of Construction and Housing and Communal Services of the Republic of Uzbekistan - abbreviated as Gosexpertiza SUE. The company was incorporated under the Ministry of Construction and Housing and Communal Services of the Republic of Uzbekistan as per the decision of the President of the Republic of Uzbekistan dated April 2, 2018 No. PP-3646 "On organization of the activity of the Ministry of Construction of the Republic of Uzbekistan".
The main objectives of the company are as follows:
Compliance with urban planning, design estimates, working drafts and detailed design, and equity and borrowed funds of legal entities and individuals for urban planning, fire and explosion safety, social, sanitary and hygienic requirements, organization and passing the state expertise on the rational use of fuel and energy, raw materials and natural resources, compliance with design solutions to the applicable standards and regulations, in accordance with the prescribed procedure.
2. Design and estimate documentation
Design and estimate documentation (DED) shall be developed by the design companies in accordance with the urban planning standards and regulations (ShNK, KMK, SNiP, Construction standards).
The construction contract shall specify the composition and content of the design and estimate documentation, and indicate which of the parties should submit it and when. The contractor has no right to start construction without a duly approved DED. The DED is developed to determine the cost of the construction facility. The DED shall include the costs as follows:
If the cost of additional work exceeds 10% of the estimated cost, the additional estimates should be developed.
From January 1, 2023, the estimated resource standards in determining the cost of construction in the DED shall be applied only for works performed under the public procurement. For business entities that finance construction and installation, reconstruction and overhaul at their own expense, the estimated resource standards are advisory in nature (paragraph 4 of the decree of the Cabinet of Ministers No. 577 dated 10/06/2022).[2]
3. Methods to determine the cost of facility construction at current contractual prices
The cost of construction facility at current contractual prices means the amount of money determined based on as follows:
Starting cost means the estimated cost of the subject of the bidding, determined by the employer or by a design or special company as the the request of the employer.
The contractual current cost means the cost of the subject of the bidding, determined as per the results of the bidding.
The basis for determining the construction cost is as follows: unit rate per unit of capacity, the cost of benchmarks, the design (working draft) and detailed design, including drawings, bill of quantities for construction and installation, resource estimates, equipment specifications and summary sheets, main solution for organization and sequence of construction, adopted in the construction management plan, and executive summaries to the design documents; applicable standards (regulations) for estimating, developed as per the Part 4 of the urban planning standards and regulations (ShNK) "Standards and regulations for estimating", and selling, limit and one-off prices for equipment, furniture and inventory [1](to be described in more detail in the next article "Pricing and cost estimation in construction").
1. When the design and estimate documentation should be developed
The estimates for repairs or construction in the Republic of Uzbekistan shall be developed in accordance with the Urban Planning Code of the Republic of Uzbekistan,
(Approved by the Law of the Republic of Uzbekistan dated 02/22/2021 No. ZRU-676) and the applicable collections of estimated resource standards (CRS), ShNK.
The design and estimate documentation shall be developed in compliance with the design assignment and the contract prepared by the proponent by the design company as per the proponent's request. A contract for design and survey, as entered into in accordance with the prescribed procedure, is a legal document regulating the relationship between the employer and the design company.
The design and estimate documentation can be developed against the procedure as follows: in one stage - a working draft (the approved part with the detailed design) - for technically simple facilities and facilities under construction for mass-scale projects. The contractual cost of works and services for construction of facilities at current prices is established in accordance with the prescribed legal procedure. The cost of construction of facilities is determined by the employer against the resource statement, established by calculating the costs in projected current prices and tariffs for resources in accordance with ShNK 4.01.16-09 "Rules for determining the cost of construction at contractual current prices".[2]
2. Profession of quantity surveyor
Quantity surveyor is an expert that is in charge of preparation, verification and approval of the estimates for construction, reconstruction and repair of facilities. The activities of the expert are regulated by the "Rules for determining the cost of construction at the contractual current price - ShNK 4.01.16–09", and methodological guidelines and regulatory documents of the Ministry of Construction of the Republic of Uzbekistan.
The main functions of quantity surveyor:
With this, a good quantity surveyor in addition to analysis and evaluation of the correctness of cost estimates prepared by other experts and contractors, can also carefully identify hidden errors and inaccuracies in documentation, like a scrupulous researcher.
3. Dictionary of a quantity surveyor
Form No. 2 (KS-2) is "Certificate of acceptance of completed construction and installation"
A document confirming the actual completion of a certain scope of work by the contractor. In Uzbekistan, this form is used to record the scope and quality of construction or repair in accordance with the contract. It shall be signed by the contractor, the employer and can be certified by technical supervision. It is the basis for accounting for completed work and payment for it.
Form No. 3 (KS-3) is a "Certificate of the cost of completed construction and installation and expenses" or an invoice statement of completed works (costs incurred). A document reflecting the cost of the work accepted as per the F-2 certificate. It is used for settlements between the employer and the contractor.
The "invoice statement for completed works (costs incurred)" is filled in during the investment projects (design, construction, reconstruction, major repairs) as implemented based on the results of the bidding (tender), during turnkey construction, under direct contracts, and during construction of facilities with simultaneous development of design documentation (parallel design) and is a document of primary accounting in capital construction, issued by the employer.[3]
4. How to become a quantity surveyor?
It is possible to start the career of quantity surveyor with secondary vocational education (for example, graduates of colleges and/or academic lyceums), however, in practice, in the Republic of Uzbekistan, specialists with university degree have the advantage, that are, graduates of the Tashkent Institute of Architecture and Civil Engineering (TASI), Samarkand State Institute of Architecture and Civil Engineering (SamGASI) and other special universities.
With this, construction education by itself may not be sufficient. The quantity surveyor shall:
The main task of a quantity surveyor is to prepare reliable and reasonable cost estimates that reflect the actual scopes and meet the regulatory requirements. For this, in addition to knowledge of the calculation methodology, it is also important to have an in-depth understanding of the construction industry in general.
Cost estimate courses in Uzbekistan
It is possible to learn the profession of a quantity surveyor from private experts and in the special educational centers. The courses provide practical knowledge on development of cost estimates, working with standards and programs, and also open up opportunities for further employment as a quantity surveyor or an engineer of the production and technical department.
It is important to keep in mind that not all private courses can be passed with obtaining an official certificate confirming the qualification. Thus, the employers are more inclined to trust the graduates of curricula completed at leading educational institutions. On average, the duration of training ranges from 2 to 4 months, and students are awarded with a certificate following the successful certification.
The most sought-after and recognized curricula:
Course: "Pricing and cost estimating in construction".
It includes theoretical classes and practice with using the TNQurilish software, and Microsoft Excel and Word applications.
The training is available in Uzbek and Russian.
Special attention is paid to the study of the regulatory framework, that is, the ShNK (Construction standards and regulations), which is mandatory for development of cost estimates and calculations.
The certificate by TASI is widely recognized by public and private construction companies, which enhances the prospects for employment.
§ The training is based on a combination of theory and practice with using ABC and TNQurilish software suites, which are actively used in the construction industry.
The application of ShNK, calculation methods and their correct use in preparation of cost estimates are considered in detail.
The course is available in Uzbek and Russian.
The "Qiymat" certificate is also in demand among the employers, especially in private design and contracting companies.
Thus, studying at TACI or at the Qiymat courses provides in-depth knowledge and practical skills, with obtaining a confirmation document accepted by the employers as a proof of the quantity surveyor qualification. This is a serious prospect for employment and career growth in the construction industry of Uzbekistan.
5. The estimate program is a key tool of the quantity surveyor
The estimate software is a special tool based on regulatory frameworks that provides convenient and fast work with large data on prices and allows quick finding the necessary data. It automates the calculation of scope of work, application of correction factors and preparation of final cost estimates. In the Republic of Uzbekistan, such software is adapted to national construction standards and regulations and considers the specifics of the local pricing system.
Types of cost estimate software
There are a large number of software suites for cost estimates preparation. Below are some of the most popular software suites that are widely used in the professional environment. With this, the last two software suites are especially actively used in the Republic of Uzbekistan.
"SmetaWIZARD"
One of the most popular cost estimate software for construction is "SmetaWIZARD". The official website of "SmetaWIZARD" is https://wizardsoft.ru. On this website, you can find a link to purchase the latest version of this cost estimate software and also find out the news, get advice, and even to pass a complete training.
The software package "Smeta-Bagheera"
The "Smeta-Bagheera" software for calculating the cost estimates for construction is also a rather popular product on the market. To date, the latest version of this software is the version 6.0. http://www.smeta-bagira.ru is the official website of "Smeta-Bagheera", posting all the main news about the software, complete training and where various modules and utilities can be downloaded. In addition, you can get certificates on the website and purchase a version of the software suite.
Cost estimate software "A0"
The cost estimate in "A0" has the same properties as the cost estimate forms compiled in other software. However, this cost estimate software has functionally somewhat different processing of cost estimate documentation. The "A0" cost estimate software includes standard tools for preparation of cost estimates of various types, and also has the possibility of group operations and verification of cost estimate forms. In addition, a special set of functions is provided for Employers and General Contractors, such as the contract binding, forecasting and analysis of the submitted cost estimates.
The cost estimate software "Grand-smeta"
The "Grand-smeta" is currently one of the most popular software for preparation cost estimates for construction. The official website ishttps://www.grandsmeta.ru, where software for preparation of cost estimates can be downloaded from developers. "Grand-smeta" is not an online cost estimate software, since it is offered in two versions: stationary (on a CD-ROM) and portable (on a flash drive). However, all updates, prices, directories and other related items can be installed online or remotely.[5]
The TNQurilish software suite is designed to prepare cost estimates and determine the cost of construction at current prices.
The regulatory framework of the software suite includes the entire range of construction standards and regulations as applicable in the Republic of Uzbekistan. The "TNQurilish" software suite was developed by the "Soft Project Systems", patent No. DGU 00648 dated 05/30/2003 from the Patent Office of the Republic of Uzbekistan. The developer has been successfully implementing and improving its software product in the construction market of the Republic of Uzbekistan for 16 years.
ABC (Automation of the cost estimates)
The ABC system is designed to develop the cost estimates and resource documentation for all participants in the investment process: design companies, contractors and employers active in construction. The ABC system includes algorithms for determining the cost of construction, reflects the methodologies of the CIS countries and enables to work with various currencies and price scales.
The ABC software suite implements all methods of pricing for construction products:
· Base and index method;
· Base and compensation method;
· Input method;
· Resource and index method.
ABC is used for preparation of as follows:
· local, facility-dependent and summary cost estimates for all types of construction and installation activities and for procurement and installation of equipment;
· bills of quantities for material and technical resources;
· bills of quantities for scope of work;
· specifications for equipment and materials;
· text and tabular documents of any structure;
· data about facilities.
Conclusions: thus, the quantity surveyor is crucial for the construction industry of Uzbekistan, by ensuring transparency of calculations, rational use of resources and economic efficiency of projects.
References
1. https://spec.tass.ru/build-your-future/estimatorengineer/
3. https://smetnoe.ru/services/populyarnye-vidy-uslug/raschet-smet-razrabotka-smetnoy-dokumentatsii/
4. https://gss-online.ru/articles/chto_takoe_smetnoe_delo/
6. https://qiymat.uz/course/smeta-rus/
7. https://mc.uz/ru/activity/ekspertiza-duk
8. https://nrm.uz/contentf?doc=655731_gradostroitelnyy_kodeks_respubliki_uzbekistan
9. ShNK 4.01.16-09
10. ShNK 1.03.01-16
11. "Invoice statement for completed works (costs incurred)"
12. https://tnq.uz/
13. https://smetchik.com/info/articles/professiya-smetchik/vidy-smetnykh-programm/
14. https://abccenter.uz/abc/
[1] ShNK 4.01.16-06
[2] Source: ShNK 1.03.01-16
[3] Source: Norma.uz
[1] Source: mc.uz