Substantiation of projected costs of investment and construction projects

Abstract

Introduction. Investment value assessment, investment decision making, and successful implementation of investment and construction projects at all stages of their life cycles depend on high-quality feasibility studies focused on budget investments. The purpose of the work is to substantiate budget investments (calculation of the estimated (marginal) cost) by means of modeling and ensuring the compliance between the cost of similar types of work at other construction facilities and requested capacity values or types of work specified in design assignments or preliminary project documentation packages. Materials and methods. The co-authors analyzed the technical requirements and conditions affecting pre-project solutions (engineering studies), as well as the feasibility and expediency of the project implementation. The calculation of projected (marginal) project costs performed to substantiate budget investments in accordance with established administrative/territorial, organizational, technical and technological pre-design solutions and alternative engineering options, is implemented by means of modeling the costs to be incurred and assignments fulfilled at a similar construction facility. Results. Budget investments are substantiated by the analysis of the estimated (marginal) cost, performed on the basis of cost parameters and types of works performed at a similar construction facility and with regard for the features and requirements set in the design assignment and pre-project documentation. Conclusions. The significance of the research project consists in the practical application of the process of modeling the cost of similar construction facilities in the course of compiling a package of documents to substantiate the investments to be made, assess the investment value and make a contribution to investment decision making.