For construction, we will say that it includes a complete list of all items of the work valued, including all the activities of this, from its inception to its term, according to the requirements of, “Technical Specifications of Architecture”.
In a total budget of work includes assessing all the requirements indicated in the “Technical Specifications of Work” (Architecture, Structure, Sanitary Facilities, Gas, Electricity, specialties, etc.):
- Construction Budget = Direct Costs + Indirect Costs = Total Cost of Construction + VAT (Value Added Tax)
- The Direct Costs are: The sum of the following costs.
- Preliminary Works + Heavy Construction + Completions + Sanitary Installations + Gas + Electricity + Specialties (Heating, Automation (Domestics), etc.) + Exterior Works.
- The Indirect Costs are: The summary of the costs of the General Expenses + Utilities.
- The “Preliminary Works” are all those works that as its name indicates the ones that are required and are previous and necessary at the beginning of works. (Clearing, fences, installation of works, bathrooms, basic sanitary facilities, etc.)
- The Gross Work are all those works that contemplate the structure of the work. (Excavations, Foundations, roof structure (trusses), walls, etc.)
- The Terminations are all those works that, as the name implies, give the structure its finish. (Decks, pavements, coverings, artefacts, doors, paintings, etc.)
- The works of installations are those works that provide water, electricity, heating, controls, etc.)
- The Exterior Works are those involved in accessibility, gardens and perimeter walls, fences, etc.
Summing up a construction budget is the sum of:
- Direct costs more
- Indirect costs.
The direct costs comprise an itemized which should break down all the items of a work, which are represented and indicated in the Technical Specifications of Architecture, which are valued and these total the Direct Cost of work.
Indirect costs is the sum of the General Labor Expenses and the Profits or benefits.
To this sum is added the Value Added Tax (VAT) and we are against the Total Cost of Work.
Now where between the studies of publications, in the quantities that each item has that conforms the itemized. Where each item has its unit of measure, its quantity and its unit price.
The publications are the calculation of the quantities of these items.