• Sergey Oparin Head of the Chair of Economics and management in the construction Petersburg State Transport University Emperor Alexander I, Saint-Petersburg,
  • Nikolay Chepachenko Department of Economics and management in construction Petersburg State Transport University Emperor Alexander I, Saint-Petersburg
  • Marina Yudenkо Department of Economics and management in construction Petersburg State Transport University Emperor Alexander I, Saint-Petersburg
Keywords: construction, pricing, cost, estimates


Problems of forming cost estimates for the construction industry is relevant in Russia, where many construction organizations face the issue of a current pricing system that does not consider new technologies in construction. This leads to underestimations of costs in construction and limits opportunity for competitive pricing between construction companies. This article aims to provide recommendations for improving reliability in calculating construction costs and enhance efficiencies in capital investments by construction participants.
The article provides an analysis of the existing system of pricing in construction, and the peculiarities of the system of pricing in both Russia and the United States. Results indicate the need for expediency in applying certain provisions of the foreign system into that of Russia’s for determining the cost of construction. These measures would help minimize the presence of contractors in the construction market who do not actually perform the construction and installation work on their own, and to achieve the desired level of profitability of 8 to 10%.


Ardzinov, V. D. (2006). Price Formation and Cost Estimation in Construction. Saint Petersburg: Piter.

Besedin, M. A. (2012). Development of Market Methods of Price Formation in Construction on the Basis of Aggregated Estimate Standards. Nizhniy Novgorod State University Architecture and Civil Engineering.

Buzyrev, V. V., & Yudenko, M. N. (2013). Modernization of Large-Panel House Building- a Way to Provide Economy-Class Housing in Russia and Germany. European Applied Sciences, Volum1: 193-196.

Chepurnov, D. V. (2014). Distinctive Features of Formation of Construction Cost Estimate in Russia and Foreign Countries. Vestnik of Saint-Petersburg State Economic University. Economics, 3, 154-157.

Current Tariff Rates for Wages in Construction (2015). Monitoring center examination and prices. Retrieved from http://

Didkovskaya, O. V., Ilyina, M. V., Mamaeva, O. A., & Konovalova, O. A. (2012) Estimated pricing as the basis for the formation of the cost of construction. Samara State University of Architecture and Civil Engineering.

Ermolaev, E. E., Sborshchikov, S. B., & Shumeyko, N. M. (2014). Pricing and estimate regulation in construction. Moscow: Stroyinformizdat.

Goryachkin, P. V., Shtokolov, A. I., & Hayrapetyan N. E. (2014). Publication the annual collection of reports and practical materials for engineers, quantity surveyors. Association Pricing and budget normalization in the construction. Moscow. Moscow: Union engineers - price calculation.

Gosetalon (2012). St. Petersburg state budget institution "Monitoring Center Examination and price" Territorial estimate and regulatory framework "GOSETALON 2012 edition 2014. Retrieved from

Gumba, H. M., Ermolaev, E. E., & Uvarova, S.S. (2010). Price Formation and Budgeting in Construction: educational-practical guide. Moscow: Publisher Urait.

Hackett, J. A. (2011). The role of cost estimators in UK construction; a case for and steps towards an estimating profession. UK: University of Birmingham.

Khilko, E. V., & Vorobyov, V. C. (2006). Perfection of the organizational-methodological approaches to the use of financial and price controls and information and analytical support of regional pricing in construction. Proceedings of the universities. Building. 10, 36-44.

Novak, E. V. (2011). Integration of the estimated pricing and budgeting in construction. Moscow: Ekonomicheskaya Gazeta.

Pratt, D. J. (2012). Estimating for Residential Construction. New York: Delmar.

Ulianova, O. Y. (2007). Price Formation on the Primary Real Estate Market for Residential Housing. St. Petersburg: St. Petersburg University of Economics and Finance.