Indexation refers to accounting for the increase in the cost of construction compared to the base period, caused by the rise in prices for raw materials and construction workers' wages. The conversion indices are differentiated in all regions of the country and are set quarterly or monthly for the budgetary financing of construction.

The base-index method makes it possible to accurately calculate the estimated cost of the entire construction object or individual components, excluding the contractor's own costs.

The conversion factor can be applied both to the entire estimate as a whole, and to its separate sections (when each of them has its own conversion index), to each specific estimate and to individual components of direct costs.

The price appreciation index can be averaged (for aggregated calculated data) and differentiated (for cost elements).

Costs at current rates using the base-index method are based on the monthly tracking and calculation of average prices performed by pricing organizations.

The use of conversion indices for individual cost items, raw materials, materials and types of work to their base cost makes it possible to calculate the estimate in predicted prices with a given accuracy.

The main difficulties and mistakes
with independent design:

1. Lack of an agreed project of the Sanitary Protection Zone (SZZ)
2. Lack of metering devices and objective (calculated) data on the required productivity.
3. Lack of title deeds to the land.
4. Inaccuracies in the preparation of the Terms of Reference: all the necessary studies were not taken into account, the documents listed above were not taken into account.
5. The justification of the price was performed incorrectly, on the basis of commercial proposals of non-specialized organizations, without taking into account the fulfillment of the requirements of technical conditions, the need for inspection of buildings and structures, etc.
6. Surveys, research, and design are performed by different companies, which causes delays and additional work.

 Decisions from
Company "Gutman Construction":

• We will analyze the existing situation, prepare the Terms of Reference for the SZZ project. If necessary, we will execute the project of SZZ and agree on it.
• We will collect all the necessary data, make calculations and submit it to the customer for consideration. If necessary, we will temporarily install metering devices.
• We will help in the preparation of documentation, if necessary, we will include it in the TOR for design.
• We will analyze the existing situation and prepare the correct technical task.
• We will prepare an estimate for design and exploration works and surveys, based on basic price guides.
• We have considerable experience and qualifications for the organization of a full range of design and search works. Company "Gutman Construction" has SRO permits for both design and exploration work. We are guaranteed to provide a positive conclusion of the examination and support during SMR.