COST MANAGEMENT OF BUILDING PRODUCTS

Keywords: investment, construction, costs, management, planning, forecasting, pricing

Abstract

The construction complex has a very important specificity, as it greatly affects the entire economy of our country and, what is no less important, the situation in the social sphere. Getting out of the crisis in the construction industry is one of the key tasks of the state. Anti-crisis measures in construction should not only be of an "operational nature", but should also be aimed at solving those problems that have long been overdue in the construction sector, the successful solution of which depends on how quickly the construction industry will come out of the crisis. So, for example, solving the problem of pricing in construction, today, should become one of the most important issues in eliminating the consequences of the crisis in the industry. In the period of the financial and economic crisis, the question of developing effective mechanisms for the formation and management of the cost of construction products, including information and analytical support for pricing, development and availability for designers and builders of a new estimate base, as well as the peculiarities of pricing in relation to budget financing objects, is particularly acute. Construction products are created under special economic and political conditions. Its technical and economic characteristics depend on many factors - consumer priorities, sources of financing, competition on the construction services market, trends in scientific and technical progress, production efficiency, self-regulation of the industry, state regulation. All this forms the main consumer properties of construction products - safety, durability, comfort, cost. Objective of the article is to study the real sector of the economy, how the issues of growth of the gross domestic product, the formation of budget revenues of all levels and as a conclusion of the real transition of the economy to innovative rails, ensuring economic growth and a qualitative breakthrough are solved here. Methods. An assessment of the existing mechanism of cost management during the implementation of investment programs is given. Attention is paid to the main elements of the cost management mechanism in the investment and construction sphere of the economy. The factors that determine the level of production costs are analyzed, taking into account the specifics of construction products. Results. The article examines the issue of cost management from the point of view of substantiation - reducing the cost of investment products in order to create reasoned conditions for investors' interest in long-term investments. The main emphasis is placed on the real sector of the economy, since it is in this that the revenues of budgets of all levels are formed and general economic growth is ensured. Scientific novelty. Factor-wise cost management is substantiated. Delimited functions of management by executors. Practical significance. The theoretical and technical bases for pricing construction products are defined. At the level of construction organizations, it is necessary to constantly monitor the dynamics of costs according to indicators of material intensity, machine intensity, salary intensity, specific weight of overhead costs in the cost of construction and installation works.

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Published
2024-02-29
How to Cite
Poliova, N., Hnatiuk, O., & Dmytryshyn, Y. (2024). COST MANAGEMENT OF BUILDING PRODUCTS. Kyiv Economic Scientific Journal, (4), 195-201. https://doi.org/10.32782/2786-765X/2024-4-27
Section
SCIENTIFIC ARTICLES