Let s take a look at the total project investment .

In the process of business consulting, many leaders asked, can the cost of the feasibility study report be included in the total investment?

Can the price of land use rights be included in the total investment?

What expenditures can be included and what expenditures can't, in fact, this is the content category of project cost, and there are clear regulations in the field of project cost.

I hope you will grasp a principle firstThe total investment of a project is an attribute of the project itself

It will not change depending on what kind of financing will be used for this project in the future.

Different financing methods may have different restrictions on the scope of use of financing funds, but this does not affect you to include the "restricted use" part into the total project investment in accordance with the provisions of the project cost.

Let's take infrastructure projects as an example to talk about the total investment in project cost.

The total investment of the project is divided into two major components, construction investment and interest during the construction period.

Among them, construction investment accounts for the main proportion, which is the capital that needs to be invested to complete the project;

The interest during the construction period is a requirement of "enterprise accounting", which requires that the interest generated by the financing funds of the project construction during the construction period be included in the total investment of the project.

If the construction funds of a project are all built by the enterprise's own funds, then the interest during the construction period is 0, and the total investment of the project at this time only includes the construction investment.

Okay, let's look at construction investment.

Construction investment is divided into project costs, other project costs and preparatory costs.

These are also the three types of detailed expenses that we most often see in the itemized table of the total investment of the project.

First, the cost of the project.

The project cost refers to the cost of project construction, equipment purchase and installation directly used during the construction period, which is divided into construction and installation project cost, equipment and tool purchase cost.

The cost of construction and installation engineering is divided into construction engineering cost and installation engineering cost, which is specific to the actual details, which is manifested as labor cost, material (including engineering equipment) cost, construction machinery and equipment use fee, enterprise management fee, profit, fee and value-added tax.

We're not in engineering, it's enough to know this layer.

The second category of project costs is the purchase cost of equipment and tools.

At this point, we will resolve a dispute in the special bond business.

We know that there are usually three uses for financing funds: project construction, replenishment of liquidity, and repayment of borrowings.

The funds of local ** special bonds are used for a single purpose and are only used for project construction.

There is a saying that pops up in the market:

The purchase of relevant equipment in the construction of the project should belong to the use of liquidity funds, not the project construction. Therefore, the funds from the special bonds cannot be used for the purpose of equipment purchase.

To solve this problem, it is necessary to return to the field of engineering cost.

If the "purchase of relevant equipment" meets the relevant conditions and can be included in the "purchase cost of equipment and tools" in the project cost, which means that it is part of the total investment of the project, then the special bond funds can be used.

Therefore, what needs to be judged here is, when can the "equipment and tool purchase cost" be included in the project cost?

Take a look at the definition of "equipment and equipment purchase costs".

The cost of equipment and equipment purchase refers to the cost of purchasing or self-made equipment that meets the standard of fixed assets and the first set of equipment and furniture for new or expansion projects in accordance with the requirements of the construction project design documents.

meet the standard of fixed assets".

If the purchased equipment can form fixed assets, in principle, it can be included in the "equipment and tool purchase cost" in the project cost.

Therefore, as long as the cost of purchasing equipment meets the conditions, it can also become part of the total investment of the project, and the special bond funds can be used according to the regulations.

Second, other costs of project construction.

Other expenses of project construction refer to the expenses incurred during the construction period related to the acquisition of land use rights, the construction of the entire project and future production and operation.

It is divided into three categories: construction land fees, including compensation fees for land acquisition and relocation and land use right transfer fees;

Expenses related to project construction, including construction management fees, survey and design fees, research and test fees, etc.;

Expenses related to the production and operation of the enterprise in the future, including joint commissioning costs, production preparation costs, office and living furniture purchase costs, etc.

Everyone cares about the cost of paying for land use rights and the cost of feasibility study reports.

In more detail, the construction land fee includes the land compensation fee for the expropriation of agricultural land, the resettlement subsidy, the land use right transfer fee, the urban construction supporting fee, and the housing expropriation and compensation fee.

Expenses related to project construction, including construction management fees, feasibility study fees, special evaluation fees, survey and design fees, research and test fees, site preparation fees and temporary facilities fees, other fees for the introduction of technology and imported equipment and materials, special equipment safety supervision and inspection fees, municipal public facilities fees, engineering insurance premiums, patent and proprietary technology use fees.

Many miscellaneous expenses are basically in the "other costs of project construction", and when considering the total investment of the project, you can safely add various expenses such as the price of land use rights and the cost of feasibility study.

Third, the reserve fee.

The reserve fee includes the basic reserve fee and the spread reserve fee.

The basic reserve fee refers to the unforeseen expenses that may occur in the implementation of the project and need to be set aside in advance, also known as unforeseen expenses. It mainly refers to the cost of design changes and possible increase in the amount of work during the construction process.

To put it bluntly, the total investment of the project is estimated at the beginning, so set aside some money in case you need it.

Under normal circumstances, the basic preparation fee is calculated as a proportion of the sum of "project cost + other project construction costs".

As for what is this ratio, it is generally determined by the engineering cost management agency according to the comprehensive analysis of the characteristics of the project.

The spread reserve fee refers to the possible increase in the cost set aside for changes in interest rates, exchange rates or other factors during the construction period, also known as the unforeseen change fee.

Well, the construction investment of a project is understood, plus the interest during the construction period, the total investment of the project is basically out.

Consolidate it a little more with the map.

Previously, I also mentioned in some articles that the total investment of a project will be called differently at different stages of the project.

After all, starting from the idea of building a project, as the project progresses, the project becomes more and more mature, and the "gold content" of the total investment will be different, so it is necessary to give different proper names to the total investment of the project at different stages.

In the project construction book stage, it is called Kuang calculation of total investment;

The total investment at this point may be an integer, with no decimal point as an integer. The project is in a very early stage, and can only be analyzed, summarized and sorted out according to the best data and information of similar projects, and a total investment can be calculated.

In the feasibility study report stage, it is called estimating the total investment;

At this time, the feasibility study agency has carried out a certain investigation on the project, and the investment amount of the construction project can be reasonably determined.

In the preliminary design budget estimation stage, it is called design budget estimation, also called total budget estimation.

At this time, according to the drawings and descriptions of the preliminary design or the expanded preliminary design, the design unit shall use the budget estimation index, budget estimation quota, comprehensive index budget quota, various cost quotas or fee collection standards (indicators) issued by the state or region, and in accordance with the design requirements, make a rough calculation of all the costs required for the construction project from preparation to completion and delivery.

The estimated total investment is a relatively accurate total investment, and it is also a relatively rigorous total investment.

Let's talk about what "rigorous" means here.

The estimated total investment, once approved by the competent department, it is the maximum amount of the total cost of the project, and the follow-up can not be broken at will, if there is indeed a change in the project, it needs to be reported to the original examination and approval department for re-approval.

Subsequently, a series of control construction drawing budgets, bidding, signing of general contracting contracts, etc., must be based on the estimated total investment.

Finally, let's talk about another concept, project static investment and project dynamic investment.

Take this picture out again

The static investment of the project is composed of the project cost, other construction costs and basic preparation costs, excluding the price difference reserve fee and the interest during the construction period, which are the two parts that I marked in red.

The dynamic investment of the project includes the reserve fee for the price difference and the interest during the construction period.

Therefore, the dynamic investment of the project is always greater than or equal to the static investment of the project.

In general, from a more accurate point of view, the dynamic investment of the project is more cautious, taking into account the future changes, and also considering the interest during the construction period.

But from an application point of view, dynamic investing is not necessarily used more than static investment.

Suppose that a ** investment project in the future plans to be financed mainly through ** special bonds, special bonds, issued three or four times a year, which means that the project may need to write three or four times a year of project issuance materials, if dynamic investment is used, then, each time in the issuance materials, the total investment of the project is always different, always changing, in addition, the special bond issuance is the bond principal and interest coverage multiple, that is, the future operating income of the project The degree of coverage of the principal and interest of the bond, However, the total investment of the project does not affect the principal and interest coverage multiple, so there is no need to use dynamic investment.

Use static investments that maintain the continuity of the project materials without compromising the core requirements of the issued materials.

Well, that's all for the total investment in the project