Technical-economic report: the solution to concerns about calculating construction costs

Technical-economic report: the solution to concerns about calculating construction costs

Currently, along with socio-economic development, the demand for civil and industrial construction is increasing rapidly, with increasingly high requirements for aesthetics and technical standards. Many new technologies are being developed and widely used, which also creates higher requirements for technical-economic reports. A typical example is Ubot flat slab technology, which was transferred to LPC in 2012. 

In addition to having to continuously update construction trends, investors also have many other concerns, such as calculating construction costs, how to prepare a technical-economic report, and the cases in which a technical-economic report is required. In today’s article, LPC will help readers better understand these issues.

What is a technical-economic report?

A technical-economic report is a term commonly used in the construction sector and is legally referred to as the Technical-economic report on construction investment.

Accordingly, the Technical-economic report on construction investment consists of documents presenting the necessity, feasibility, and effectiveness of construction investment based on each design option in the construction drawings for small-scale projects, serving as a basis for consideration and decisions on construction investment.

What does a technical-economic report dossier include?

According to legal regulations, a technical-economic report on construction investment includes the following documents:

– Construction drawing design;

– Technological design (if any);

– Construction cost estimate;

– Explanation of the necessity of the investment;

– Explanation of the construction objectives;

– Explanation of the construction location;

– Explanation of the land use area;

– Explanation of the project scale;

– Explanation of the capacity;

– Explanation of the construction grade;

– Explanation of construction methods and construction safety measures;

– Explanation of the site clearance plan and environmental protection measures;

– Explanation of the funding arrangement;

– Explanation of the construction period;

– Explanation of the effectiveness of the construction investment.

See also: Contents and appraisal dossier of the technical-economic report on construction investment

Cases requiring a technical-economic report:

Cases in which a Technical-economic report on construction investment is required include:

– Construction investment projects for religious purposes;

– New construction, repair, renovation, or upgrading investment projects with a total investment of less than VND 15 billion (excluding land use fees);

– Construction investment projects whose main content is the procurement of goods, provision of services, installation of construction equipment, or repair and renovation projects that do not affect the load-bearing safety of the structure, with construction costs accounting for less than 10% of the total investment and not exceeding VND 5 billion (excluding nationally important projects, Group A projects, and projects implemented under the public-private partnership model).

Note: For individual residential houses owned by households or individuals, a Feasibility study report on construction investment or a Technical-economic report on construction investment is not required when constructing the house.

How to calculate construction costs

(Source: collected)

*Formula for calculating the cost of Ubot beamless flat slabs:

– Preliminary determination of slab thickness: The slab thickness is preliminarily selected according to the following formula:

                         Hs=1/300 L

     Where L:  the longest span of the slab

– Determination of the beam height and position: 

  + Except in special cases, beams connected to the UBOT slab are embedded within the slab. The height is equal to the slab thickness. The width can be selected as needed to accommodate the reinforcement.

  + For beams that are not connected to the slab, select the height using the same formula as for preliminary selection of conventional beams: Hd=(1/10-1/12)L

Hopefully, the above article will help investors better understand the process of preparing a technical-economic report and how to calculate construction costs.

—- Lam Pham Construction Company Limited – LPC

Hotline: 0911.29.9696

Website: https://lpc.vn

Facebook: Lam Pham Construction  

Youtube: Lam Pham Construction  

Tiktok: Lam Pham Construction