Lecture 3 Composition and Calculation of Other Project Construction Expenses, Preparatory Fees, and Interest During the Construction Period
1. Construction land fee
(1) The basic method of obtaining construction land
Assignment, transfer, lease, transfer
1. Acquire the right to use state-owned land through transfer
1) Residential land for 70 years.
2) Industrial land for 50 years.
3) 50 years of land for education, science and technology, culture, health and sports.
4) Commercial, tourism and entertainment land for 40 years.
5) 50 years of comprehensive or other land use.
2. Acquire the right to use state-owned land through allocation
Land for state organs, military land, infrastructure land, public welfare undertakings, and others.
| The basic method of acquisition of construction land | essentials | expenses | |
| Transfer method | Competitive Selling: Bidding, bidding, listing | Commercial residential (70 years), industrial (50 years) and commercial, tourism, entertainment (40 years) and other types of commercial land must be transferred by bidding, auction or listing. | Compensation costs for land acquisition Demolition compensation costs Land transfer fee |
| Agreement assignment | The transfer fee shall not be lower than the minimum price determined in accordance with the provisions of the State; the agreed reserve price for the transfer shall not be lower than the minimum price of the agreed transfer in the area where the land plot is to be transferred. | ||
| Allocation method | Where land use rights are acquired by way of allocation, there shall be no restriction on the period of use unless otherwise provided. | Compensation costs for land acquisition Demolition compensation costs Or use it for free |
Exercise: Regarding the acquisition and service life of construction land, the following statement is correct ()
A. The method of obtaining the right to use land for construction purposes may be leasing or transfer
B. The methods of obtaining land use rights through agreement transfer are divided into three types: bidding, bidding, and listing
C. Land for urban public welfare undertakings shall not be acquired by way of allocation
D. Where land use rights are delivered to users free of charge, the maximum land use period is 70 years
Answer: A
(2) The cost of obtaining construction land
1. Compensation costs for land acquisition
| Compensation costs for land acquisition | All parties | essentials | |
| Land compensation fees | Rural collectives Economic organization | The average annual output value of the cultivated land in the three years before it was expropriated was 6 to 10 times. | Land compensation fees and resettlement subsidies cannot yet enable peasants who need to be resettled to maintain their original living standards, and with the approval of the provincial government, the resettlement subsidy fees may be increased. However, the sum of the land compensation fee and the resettlement subsidy fee shall not exceed 30 times the average annual output value of the land in the three years before the expropriation. |
| Settlement grants | Units where land is expropriated and units where labor is placed | The standard for each agricultural population to be resettled shall be 4 to 6 times the average annual output value of the cultivated land in the three years before it was expropriated; however, the maximum standard for each hectare of arable land expropriated shall not exceed 15 times the average annual output value of the three years before the expropriation. | |
| BIBS compensation fee and Ground attachment compensation fee | Seedlings and on the ground Attachment owner | Compensation fee for young seedlings: No compensation will be given for crops, trees, etc. that are rushed to plant after negotiating the land acquisition plan. | |
| Compensation fee for above-ground attachments: Depending on the value and depreciation of above-ground attachments before the negotiation of the land acquisition plan, the principle is "what to dismantle, what to make up; how much to dismantle, how much to make up, not lower than the original level". | |||
| Development of new vegetable patches Construction fund | Local finances | Planting vegetables only one stubble a year or planting vegetables due to adjustment of stubble is not used as a collection of development fund vegetable land; requisitioning undeveloped planned vegetable land does not pay the fund; cities where vegetable production and marketing are liberalized, can meet the supply, and no longer need to develop new vegetable fields, do not charge funds. | |
| Arable land occupancy tax | country | The scope of collection includes the occupation of cultivated land, fish ponds, garden land, vegetable land and their agricultural land for housing construction or other non-agricultural construction, all of which are levied at one time according to the actual occupied area and the prescribed tax amount. Land that had been used to grow crops in the previous three years is also considered arable land. | |
| Land administration fees | Builder | 2% to 4% is extracted from the sum of the four costs of land compensation fee, green shoot fee, ground attachment compensation fee, and resettlement subsidy fee. |
Exercise: Regarding the compensation cost of land acquisition, the correct expression in the following expression is ().
A. Compensation for above-ground attachments shall be determined on the basis of the actual situation of above-ground attachments prior to the Coordinated Land Acquisition Programme
B. The sum of the compensation fees for land compensation and resettlement shall not exceed 15 times the average output value of the land in the three years before it was expropriated
C. Expropriation of undeveloped planned vegetable plots is charged on a year basis for planting only one stubble per year to collect the new vegetable plot fund
D. When the arable land occupancy tax is levied, the land occupied for crops in the previous three years shall not be regarded as arable land
Answer: A
2. Demolition compensation costs
(1) Compensation for demolition
| Monetary compensation | According to the location, use, construction area and other factors of the demolished house, it is determined by the real estate market assessment price. |
| Exchange of property rights of houses | The two parties settle the difference in the price of the property rights exchange according to the amount of compensation obtained for the demolished house and the price of the house exchanged. |
(2) Relocation and resettlement subsidies
| Evicted person or tenant of the house | Demolition man | |
| Relocation grants | Relocation before the expiration of the prescribed relocation period | Early moving incentive fees can be paid |
| Settlement grants | Make your own accommodation | Temporary resettlement subsidies should be paid |
| Use swing space provided by the demolitionist | Temporary resettlement allowances are not paid | |
| Causing economic losses caused by suspension of production or business | A one-time comprehensive subsidy fee for suspension of production and business will be granted |
3. Transfer fee, land transfer fee
Principle: that is, land prices do not have a large impact on the current investment environment; Land prices are commensurate with local socio-economic affordability; The land price should take into account the land development costs that have been invested, the supply and demand relationship of the land market, the land use, the type of district, the plot ratio and the service life.
2. Other expenses related to the construction of the project
Construction and management feasibility study tests, survey environmental impact assessment labor, on-site introduction of insurance, ad hoc municipal utilities.
(1) Construction management fees
Construction management fee refers to all kinds of management expenses incurred by the construction unit during the construction period for the construction of the project to complete the construction of the project.
1. The content of the construction management fee
(1) Construction unit management fee
(2) Project supervision fee
2. Calculation of the management fee of the construction unit
Construction unit management fee = project cost× construction unit management fee rate
(2) Feasibility study fees
(3) Research and test fees
The following items are not included:
(1) Items that should be expensed by the three costs of science and technology (new product trial production fee, intermediate test fee and important scientific research subsidy fee);
(2) The construction enterprise that should be included in the construction installation cost (the inspection and test fee in the enterprise management fee) shall pay the general appraisal and inspection of building materials, components and buildings, and the research and test fee for technological innovation;
(3) Items that should be expensed by survey and design fees or project costs.
(4) Survey and design fees
(5) Environmental impact assessment fees
(6) Labor safety and health evaluation fees
(7) Venue preparation and temporary facility fees
1. Contents of venue preparation and temporary facility fees
(1) The site preparation fee of the construction project refers to the cost incurred in order to make the construction site of the project meet the conditions for starting the construction project and the preparation of the site leveling organized by the construction unit.
(2) The temporary facility fee of the construction unit refers to the cost incurred or amortized by the construction unit for the construction, maintenance, leasing and use of temporary facilities in order to meet the needs of the construction, living and office of the project.
2. Calculation of site preparation and temporary facility fees
Site preparation and temporary facility fee = engineering cost × rate + demolition and cleaning fee
This cost does not include the cost of temporary facilities for construction units that have been included in the cost of construction and installation works.
(8) Other fees for the introduction of technology and equipment
Other costs for the introduction of technology and equipment refer to expenses incurred in the introduction of technology and equipment that are not included in the cost of equipment acquisition.
(9) Project insurance premiums
Including all insurance for construction and installation works, introduction of equipment property insurance and personal accident insurance.
(10) Special equipment safety supervision and inspection fees
(11) Municipal utility fees
3. Other expenses related to future production and operation
(1) Joint trial operation fee
The joint commissioning fee is a net expense incurred for the joint commissioning of the entire production line or plant (the cost of commissioning is greater than the difference in income).
Joint commissioning does not include commissioning and commissioning costs that should be incurred by the equipment installation project, as well as disposal costs due to construction reasons or equipment defects exposed during the commission operation.
Exercise: In the following items, the costs to be considered when calculating the joint commissioning fee include ( ).
A. The cost of raw materials and power required for trial operation
B. Single equipment commissioning fee
C. Mechanical usage fees required for trial transfers
D. Sales revenue of trial operation products
E. The salary of the construction unit participating in the joint trial operation
Answer: ACDE
(2) Royalties for patents and know-how
1. The main content of patent and know-how royalties
(1) Foreign design and technical data fees, imported valid patents, proprietary technology use fees and technical confidentiality fees.
(2) Domestic valid patents and royalties for the use of know-how.
(3) Trademark rights, goodwill and franchise fees, etc.
(3) Production preparation and start-up costs
1. Production preparation and start-up costs
(1) Personnel training fee and early factory entry fee.
(2) Purchase costs for production office and living furniture necessary to ensure normal production (or business or use) in the early stage.
(3) The purchase cost of the first set of production tools, appliances and utensils that are necessary to ensure normal production (or business and use) in the early stage that does not meet the standards of fixed assets. Spare parts fees are not included.
2. Calculation of production preparation and start-up costs
(1) New projects are calculated according to the design quota, and renovation and expansion projects are calculated according to the new design quota:
Production preparation fee = design quota × production preparation cost index (yuan / person)
(2) It can be calculated by using the comprehensive production preparation cost indicator, or it can be calculated according to the classification index of the cost content.
4. Preparatory fees
(1) Basic preparatory fees
1. The content of the basic preparatory fee
The basic preparation fee refers to the cost reserved in advance for the unforeseen expenses that may occur during the implementation of the project, also known as the unforeseeable cost of engineering construction, which mainly refers to the cost of design changes and the possible increase in the amount of work during the construction process.
2. Calculation of the basic reserve fee
Basic reserve fee = (project cost + other costs of project construction) × basic reserve fee rate
(2) Spread reserve fee
1. The content of the spread reserve fee
Spread reserve fees are possible increases in fees reserved for changes in interest rates, exchange rates or prices during the construction period, also known as unforeseen fees for price changes.
2. Calculation of spread reserve fee
Where PF - spread reserve fee;
n—number of years during construction;
It - the amount of the investment plan for the tth year of the construction period, including the project costs, other costs of the construction of the project and the basic reserve fee, that is, the amount of the static investment plan for the tth year;
f—Annual price increase rate;
m - The pre-construction period (from the preparation of the estimate to the start of construction, unit: years).
| name | Nickname | parenchyma | Calculate cardinality |
| Basic preparation fee | Unforeseen costs for construction | The amount of change | Project cost + other costs of project construction |
| Spread reserve fee | Unforeseen fee for price changes | Changes in price | Project cost + other project construction cost + basic reserve fee (static investment plan amount) |
Exercise: The project cost of a construction project is 72 million yuan, the other cost of project construction is 18 million yuan, and the basic preparatory fee is 4 million yuan. The pre-project period is 1 year, the construction period is 2 years, the proportion of static investment completed in each year is 60% and 40%, and the average annual investment price increase rate is 6%. Then the second year of the construction period of the project will increase the price reserve fee () 10,000 yuan.
A.444.96
B.464.74
C.564.54
D.589.63
Answer: D
5. Interest during the construction period
When the total loan is issued in a balanced manner on an annual basis, the calculation of interest during the construction period can be considered according to the expenditure of the loan in the current year, that is, the loan in the current year is calculated as half a year, and the loan from the previous year is calculated as interest for the whole year. The formula is:
qj in the formula - interest accrued in the jth year of the construction period;
Pj-1 - Sum of the accumulated loan principal and interest at the end of the first (j-1) of the construction period;
Aj - the amount of the loan for the construction period of j years;
i—Annual Interest Rate.
In the calculation of foreign loan interest, it should also include the handling fee, management fee and commitment fee charged by the foreign lending bank to the lender at an annual interest rate according to the loan agreement, as well as the refinancing fee, guarantee fee and management fee charged by the domestic agency to the lending unit at an annual interest rate approved by the competent state department.
Exercises: A project requires a total of 9 million yuan of project funds, the construction period is 3 years, the annual balanced financing, the first year loan is 3 million yuan, the second year loan is 4 million yuan, the construction period interest is calculated but not paid, the annual interest rate is 10%, then the interest rate of the construction period in the second year is ().
A.50.0
B.51.5
C.71.5
D.86.65
Answer: B