How is the year of material use calculated for a certain project?
The year when the building material is used in the project is defined depending on the phase of the investment project. The project phase is defined according to the industry classification of the facility and the estimated amount of investments in the project, if there is no information whether the project execution dates are confirmed or not. We pre-define the construction start date and, based on this date, we define resources distribution for construction, the year of use is defined as the year when this material will be required during construction. We use a formal allocation of all materials by the order of use in the construction process.
How do you define the quantity of building materials for the project?
Consumption of building materials for each project is calculated based on two criteria: the defined project type and the amount of investments into the project. We have typified the main industrial facilities. For each type we calculated the norm of material consumption required to build it- the amount of material required for construction of a typical facility and the total construction cost have been defined. Material consumption is accounted based on working drawings and estimated norms, proceeding from work scopes provided in the design and estimate documentation for construction projects. The norm of the building materials consumption for the certain amount of investments is conditioned by these parameters.
You say you make calculations based on the cost estimates. What kind of cost estimates do you use? Do you use different cost estimates for different projects, or is it one cost estimate for all projects?
All industrial production can be divided into sectors of industry, and the main types of production can be defined for each sector. The production process and organizational structure of enterprises are quite different due to the influence of organizational, technical and economic features of production, which are conditioned by product range, production volumes and frequency. The industrial structure and project features have been defined for every type of the project, the unique sets of documentation have been analyzed, including the design and estimate documentation for construction projects – that’s how we have defined the building materials consumption. The project revealed by us with a certain set of characteristics, on the basis of which the understanding of "project type" is formed, is taken as project which has the most common and average indicators in the industry.
Is the cost of construction works and building materials being indexed?
We have taken 2020 material consumption norms as the base ones for cost calculations in our system. The cost of construction works and building materials for future periods is adjusted against the base period by using the payment ratios – separate deflator indices of the base social and economic development forecast for Russia, prepared by the Ministry of Economic Development and Trade of the Russian Federation based on the current internal and external trends, forecast of development of the world economy and foreign economic conditions. Preliminary analysis and use of deflators makes it possible to define the real level of the cost, i.e. without overpricing of purchased materials or without unreasonable under-pricing.
Are the estimates according to which you make calculations for industrial, civil and infrastructure projects, different from each other?
We don't have a single estimate for a standard project. We have selected an integrated solution for the minimum required, from our point of view, projects of both industrial and civil purpose, in addition, we have defined the section for the infrastructural projects connecting industrial and social sphere.
Until which year can I make a forecast?
You can calculate any distribution by year in future periods by setting a convenient and required period. But we want to draw your attention to how such a sample is formed. Dozens of investment projects at different phases are added daily to our portal. Most often, we add projects that have moved from the phase of ideas to the phase of pre-project and project development, when the amount of investments and a concept of the future industrial plant are disclosed in public. The investment phase of a construction life cycle of many such projects varies from 3 to 5 years. Percentage of long-term projects with a project execution period exceeding 5 years, as well as the percentage of projects in the conceptual phase, is significantly lower than other projects published on our investment portal. The number of projects has a direct impact on the analytical sampling and definition of the amount of expendable materials in the selected period. Therefore, we automatically select the period with the largest number of investment projects for you, but do not limit you in the desire to view the forecast in the longer term.
How are project phases taken into account, if you have thousands of projects?
Distribution of materials takes into account the current phase of the investment project and is distributed over time when they are used in construction. As soon as the project changes its phase to "Commissioned" or "Cancelled" phase, the distribution of construction materials for it is no longer relevant, it is automatically removed from the projects analytical sample list. You can add “Suspended” projects to the “review” mode in the advanced search mode if you want to discover the maximum market opportunities.
Can cancelled projects be added to analytics?
When the project phase changes, cancelled and commissioned projects are automatically being removed from calculations of materials consumption analytics.
How cost of materials is calculated?
The cost of materials is calculated based on the average cost of a resource at the federal unit price level represented by estimate cost indices of the Ministry of Construction of the Russian Federation in the current year. If you are a supplier of this material and know that the average market value of the material is significantly different from the material cost, please let us know. We are working to create a flexible system that is most convenient for our customers.