The role of the price factor in the construction sector

The scheme of the formation of prices for construction services is quite difficult and has its own characteristics, which primarily relate to the cost of building materials operated in the process of case. Pricing policy in construction is one of the key elements on which general industry principles act. The price indicator is the economic category and a tool for the development of the entire market, and its expression is a monetary unit of construction products. In addition, if in general to analyze the activities of the company, based on its volumes of capital investments, costs, labor productivity, capital intensity and other indicators, then all these values ​​are inextricably linked with prices. On the basis of the price, all capital flows are planned and financed, the effectiveness of each investment project is calculated, an intra -production relationship is organized, the final results of the financial activity of the company are evaluated, indicators of economic efficiency are calculated by introducing new technology.

The level of development of the construction sector itself depends on the price, the prospects for its growth and increase quality indicators. The price fulfills its main function, which consists in the quantitative expression of the cost of all products produced on the market.

It turns out that the price is a measuring tool designed to determine all labor costs.

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