Estimated profit

The estimated profits in construction are those provided for in the construction contracts and are intended to cover the costs of contracting organizations for the development of productive capacities and the material incentives for workers. The estimated profit is the remuneration of the contractor, article 709 of the Civil Code of the Russian Federation. Its size is determined at the level of the necessary costs to increase the reproducibility of construction enterprises in the region and is determined for each organization individually on the basis of the substantiation of the contract (treaty) construction price. Estimated profits are part of construction and non-value value.

Methodological guidance on determining the value should be used to calculate the estimated profits Estimated profits in construction (MD).

Estimated profit margin

The Directorate of Pricing and Measuring Normation in Construction and the Housing and Communication Complex of the Russian State serves as the general guidance and supervision of the preparation of industry-level profit margin standards, as well as the regulations on types of work developed by special organizations.

All draft regulations are under consideration by the Inter-Ministerial Commission for the Development of Pricing in Construction (IWC) of the Russian State. The developer organizations, taking into account the comments of the IHC, adjust the standards and refer them to the Pricing Authority.

There are three types of regulation (based on them and estimated profits):

• General for the construction industry and for all enterprises. For construction and construction, 65 per cent of the workers ' pay fund, with direct budget costs, is 50 per cent for construction.
• Separated by type of work. This type of standard is defined in annex 3 to the MPA Methodological Guidelines and is applied at the time of preparation of the working documentation.
• Individuals for specific contracting enterprises. This type of regulation does not apply to contractors operating under the federal budget.