Factors affecting the cost of engineering services in construction
Abstract
Engineering services can be provided by specialized engineering companies and individual specialists. Since 2017, Ukraine officially has the profession of engineer-consultant. Qualification Characteristic of engineer-consultant has been approved. Construction customers are allowed to additionally include in the construction cost up to 3% for the payment of the services of an engineer-consultant. The amount of these costs should be justified. An analysis of world experience shows that the main methods used to determine the cost of the services of an engineer-consultant are: temporary payment, a percentage of the construction cost, a one-time fixed payment. Depending on the type of service provided by the consulting engineer, various pricing methods can be applied. An analysis of foreign and domestic sources, as well as our own practical experience in carrying out engineering activities, shows that in order to accurately estimate possible costs and determine the price of services accordingly, an engineering company must take into account a number of factors that characterize the project in which it will participate. Such factors in particular include the class of responsibility of the facility, the scale of the project (cost), the type of construction (reconstruction or restoration), the uniqueness of the facility or individual solutions, complex construction conditions (cramped construction conditions, complex geotechnical conditions, seismicity, etc.) short construction periods or vice versa a long project with a small work intensity, a complex organizational structure of the project, the experience of an engineer in this field, the requirements for the qualifications of personnel, etc. The combination of one or more of the above factors can significantly affect to the size of the labour costs of a consulting engineer. The article summarizes factors which are the most significant and those that are the most convenient for evaluation are selected by the expert assessment method on four criteria. In the future, in order to be included in the Methodology for determining the cost of consultant engineer services, numerical values of the degree of influence of various factors must be determined. They will be included in the Methodology in the form of corresponding coefficients.
Downloads
References
Stetsenko, S.P., Tytok, V.V., Emelianova, O.M., Bielienkova, O.Yu and Tsyfra T.Yu. (2020). Management of Adaptation of Organizational and Economic Mechanisms of Construction to Increasing Impact of Digital Technologies on the National Economy. Journal of Reviews on Global Economic, 9, 149-164.
Zeltser, R.Ya., Bielienkova, O.Yu., Novak, Ye., Dubinin, D.V. (2019). Digital Transformation of Resource Logistics and Organizational and Structural Support of Construction. Science and Innovation, 15(5), 38-51. doi: https://doi.org/10.15407/scine15.05.034.
Vakhovych, I.V., Galinsky, O.M., Tsyfra, T.Yu. (2012). International practice of forming contractual relations in construction. Construction production. 2012, 54, 3-7. (in Ukrainian)
Vakhovych, I.V., Molodid, O.O., Tereshchenko, L.V., Yachmenyova, Yu.V., Tsifra, T.Yu. (2017). Profession of consulting engineer (construction). Construction production, 2017, 63, 16-21. (in Ukrainian)
Nepomnyashchy, O.M., Gavrilov, A.V., Medvedchuk, O.V., Haraim, I.V. (2018). Consulting engineer: business entity and specialist. Bulletin of the builder, 2, 4-14. (in Ukrainian)
Tsyfra, T.Yu. (2019). Construction under FIDIC contracts: how to harmonize documentation with Ukrainian legislation. Journal of the Chief Engineer, 9, 47-51. (in Ukrainian)
Demianenko, O.O. (2019). Improving approaches to determining the cost of engineering services in construction. Ways to increase the efficiency of construction in the formation of market relations, 42, 138-145. doi:10.32347/2707-501x.2019.42.138-145. (in Ukrainian)
Engineering Council of South Africa. (2014). Engineering Profession Act (46/2000): Guideline for Services and Processes for Estimating Fees for Persons Registered in terms of the Engineering Profession. Retrieved from https://www.ecsa.co.za/regulation/RegulationDocs/Guideline_Fees_2015.pdf.
Handbook of qualification characteristics of employees' professions (1999, Оctober 13). Issue 64. Section 1. Managers, professionals, specialists (subject to changes and additions). Order №249 (as amended). State Committee for Construction, Architecture and Housing Policy of Ukraine. (in Ukrainian)
Association of Consulting Engineering Companies – British Columbia and The Association of Professional Engineers and Geoscientists of British Columbia (Engineers and Geoscientists BC). (2009). Budget Guidelines for Consulting Engineering Services. Retrieved from https://www.acec-bc.ca/media/6008/Budget-Guidelines.pdf.
Ontario Society of Professional Engineers (OSPE). (2015). Fee guideline. Retrieved from https://www.ospe.on.ca/public/documents/general/2015-fee-guideline.pdf.
Consulting Engineers of Nova Scotia (CENS). (2017). Guidelines for Procuring Consulting Engineering Services in Nova Scotia Published. Retrieved from https://static1.squarespace.com/static/5db21542f8
e83fa12/t/5e36e206cd5a0d4354f3d79e/1580655270425/Censguidelines.pdf.
Designing Buildings Wiki. Building design and construction fees. Retrieved from https://www.designingbuildings.co.uk/wiki/.
Association of consulting engineering companies – Canada (ACEC). (2010). Document No. 31. Engineering agreement between client and engineer. Retrieved from https://www.acec-bc.ca/media/63140/101-doc_31-english.pdf.
Gudkov, P.A. (2008). Methods of comparative analysis. Penza: Publishing House Penz. (in Russian)
