Challenges of using innovative methods for determining the estimated cost of construction works

Abstract

In order to improve the accuracy of estimated construction costs, a reform of the pricing policy in con-struction is being implemented by the Ministry of Construction, Housing and Utilities of the Russian Federation aimed at introducing the input method of estimated cost calculation. Therefore, the current state of pricing in the construction industry of the Irkutsk region was analysed in this work. It is the ac-curate determination of construction and overhaul costs at each stage of the project that is essential for all parties involved in investment activities, since inaccurate calculations have a negative impact on the financial planning by investors and can lead to a decrease in the efficiency of the activities and, consequently, a decrease in the quality of work by contractors. Here, problems, along with their possi-ble consequences, are identified and described. In addition, the estimated cost of maintenance and demolition activities calculated by different methods was compared; the opportunity cost of transport-ing materials for the construction of an art school in the Irkutsk region was calculated. Using the ob-tained results, the disadvantages of determining the estimated cost of construction were highlighted. Suggestions for improving the innovative methods of calculating the estimated cost were offered.