Estimated Prices

prices used to compute the estimated cost of construction. The system of estimated prices in the USSR includes unified, regional, unit prices for construction operations; price lists for the installation of equipment; and norms for overhead costs and planned accumulations.

The standard prices and price lists for the installation of equipment represent an approved, estimated calculation of the unit of operations, determined on the basis of expenditure norms for materials and labor; wholesale prices for materials, parts, and structural components; rates for electric power and freight hauls; surcharges payable to supply and marketing organizations; wage rates; and the cost of operating the necessary construction machinery for the required number of shifts.

The norms for overhead are established by each construction organization, but the norm for planned accumulations is standardized at 6 percent of the total direct expenses and overhead.

For mass construction projects with standard plans, such as apartment houses and cultural and everyday facilities, price lists of estimated prices are compiled. These are similar to wholesale prices for industrial output.

Estimated prices remain the same for an established period of time (until the introduction of new estimated prices). During this period, estimated prices do not reflect changes in wholesale prices and shipping and wage rates. Any reduction or increase in outlays owing to such changes is taken into account in the financial plans of construction organizations.