How to calculate the BDI for your construction company's works
Posted: Sun Dec 22, 2024 3:45 am
Before learning how to calculate the BDI of a project, you need to understand why this calculation should be done with caution. The main objectives of calculating the BDI are: to have a more assertive project budget , to be able to think strategically about the profit margin as a result, and to price the project correctly.
In this article, I will cover important points so that you understand russian email address list the BDI calculation logic works and its importance, and then teach you how to calculate it.
Continue reading to understand better.
Summary
What is BDI?
What are direct and indirect costs?
How to calculate BDI in civil construction?
Technology in construction budgeting
What have you learned so far?
Do you already know CV CRM?
What is BDI?
How to calculate bdi: The image shows a person sitting around a table with a writing notation. The person is using a pencil to write in an open notebook. Next to the notebook is a calculator and a computer keyboard. The table is in an office setting with a window in the background, and natural light appears to be illuminating the area. The person is wearing a plaid shirt and appears to be focused on his work.
The BDI or Indirect Benefits and Expenses is the calculation that considers the indirect costs of the work and relates them to profits. Decree No. 7983 , which establishes the reference budget for engineering works and services, describes the BDI as:
In this article, I will cover important points so that you understand russian email address list the BDI calculation logic works and its importance, and then teach you how to calculate it.
Continue reading to understand better.
Summary
What is BDI?
What are direct and indirect costs?
How to calculate BDI in civil construction?
Technology in construction budgeting
What have you learned so far?
Do you already know CV CRM?
What is BDI?
How to calculate bdi: The image shows a person sitting around a table with a writing notation. The person is using a pencil to write in an open notebook. Next to the notebook is a calculator and a computer keyboard. The table is in an office setting with a window in the background, and natural light appears to be illuminating the area. The person is wearing a plaid shirt and appears to be focused on his work.
The BDI or Indirect Benefits and Expenses is the calculation that considers the indirect costs of the work and relates them to profits. Decree No. 7983 , which establishes the reference budget for engineering works and services, describes the BDI as:
“[…] percentage value that affects the overall reference cost for carrying out the engineering work or service.”
The calculation of BD I is very important in the work planning phase as it reduces uncertainties regarding the execution of the work.
Furthermore, according to the aforementioned Decree, the BDI is part of the criteria for preparing budgets for works that will be contracted with Union resources .
It is also important to keep in mind what your profit margin should be before calculating the BDI, as the BDI value will be added to the value of the final project, taking into account the profit that needs to be obtained and the direct costs .
One of the most common mistakes when calculating BDI is forgetting to include some direct and indirect costs of a project. Therefore, the concepts of direct and indirect costs need to be clear.
What are direct and indirect costs?
The difference between direct and indirect costs is that direct costs are those that are in the field on the construction site, while indirect costs are those that are not in the field, but “behind the scenes”. Examples of direct costs are materials for the construction site or costs with suppliers.
Indirect costs are costs related to activities also connected to the execution of the work , but are not included in the price composition bases, such as:
Salaries of engineers and architects;
Construction insurance;
company administration;
Taxation;
Accounting costs;
Unforeseen events.
Learning how to calculate BDI is important, especially because indirect costs are often not clear when pricing a property. Generally, the first costs that come to mind are related to construction materials, supplier costs, bricklayers' salaries, etc.