Pricing in service industries: methods for justifying the cost of developing a design project

Suvorova Nataliia Alekseevna PhD in Economics Associate Professor; Department of Architecture, Design and Ecology; Sochi State University 354000, Russia, krasnodarskii krai, g. Sochi, ul. Politekhnicheskaya, 7, kab. 310 arwa2006@rambler.ru Other publications by this author

Tabak Larisa Vladimirovna PhD in Economics Head of the Department of Architecture, Design and Ecology, Federal State Budgetary Educational Institution of Higher Education Sochi State University 354000, Russia, krasnodarskii krai, g. Sochi, ul. Politekhnicheskaya, 7, kab. 310 larisatabak@mail.ru Other publications by this author

Introduction

The domestic market of the design industry is at the stage of active development: according to the results of the study "Market capacity and the system of design qualifications in Russia and the world" conducted by Network Research in 2020, the current capacity of the domestic market of the design industry amounted to 1,235 billion rubles, the potential capacity is 2,260 billion rubles, and the potential market capacity, taking into account the implementation The roadmap for the development of the design industry of the Russian Federation by 2030 is 6,000 billion rubles ^[1]. The cost of services for the development of design projects, that is, pricing issues in the domestic economy are specific, because unlike foreign experience, domestic entrepreneurs, due to the legacy of the administrative and command system, including in the legislative framework, cannot always turn to the market pricing mechanism for goods and services, this fact and the relevance of the research topic is determined.

Problem statement

Estimating the cost of services for the development of a design project is a rather difficult task in practice, since it is subjective both when the customer interacts with the designer in the process of developing a conceptual solution, and the designer with direct performers during the author's supervision during the practical implementation of the project. The complexity of estimating the cost of services is typical both for individually working designers and for corporate enterprises providing services in the field of design. An even more difficult practical question of justifying the cost of developing a design project arises when a designer performs work for objects implemented at the expense of budgetary funds, which requires strict compliance with regulatory legal acts of the Russian Federation.

The relevance of the research topic is justified, among other things, by the need to implement the "Concept of the development of creative (creative) industries and mechanisms for their state support in large and largest urban agglomerations until 2030", adopted by the decision of the Government of the Russian Federation on September 20, 2021 No. 2613-r, it was established that the share of creative (creative) industries in the economy Russia should grow from 2.21% to 3% by 2024, to 6% by 2030.

The purpose of the study is a comparative analysis of domestic methods to substantiate the value of the cost of developing a design project. To achieve this goal, it is necessary to solve a number of tasks, namely:

- to determine the main directions of regulatory regulation of the field of design in Russia;

- identify regulatory legal acts aimed at regulating the methodology for determining the regulatory cost of developing design projects, give a brief description of them;

- to analyze the existing methods for determining the value of the normative cost of developing a design project, which are advisory rather than mandatory;

- to identify the main advantages and disadvantages of methods for determining the regulatory cost of developing design projects;

- to substantiate the main directions of possible improvement of existing domestic methods.

Methodology and research conditions

To achieve the set goals and objectives of the research, a set of general scientific methods was used – induction and deduction, analysis and synthesis, the method of analogy, logical and historical analysis, scientific abstraction, comparison and classification, theorization, idealization, formalization – and special research methods – positive and normative analysis, verification, etc. The main condition for conducting the research is the availability of verified research results of other authors on the specified topic, normative reference, scientific and educational literature on the profile of training "Design", since the study is desk-based.

The results of the study

As noted earlier, in practice, when developing design projects, domestic industry representatives use not only the traditional market pricing mechanism, but also focus on determining the regulatory value of their product. The regulatory regulation of the domestic sphere of design is associated, as a rule, with three aspects:

- technical regulation,

- regulation of intellectual property rights,

- determination of the standard cost of design work.

And, if the first two directions are widely covered in domestic regulatory legal acts, then the issue of determining the regulatory cost of developing and implementing design projects, in our opinion, is not fully specified and detailed.

For example, the technical regulation of design in the field of design is regulated by the following main regulatory documents:

- Urban Planning Code of the Russian Federation No. 190-FZ dated 12/29/2004

-                   Federal Law "On Sanitary and Epidemiological welfare of the population" dated 30.03.1999 No. 52-FZ;

-                   Federal Law "On Environmental Protection" dated 10.01.2002 No. 7-FZ;

-                   Federal Law "On Specially Protected Natural Territories" dated 03/14/1995 No. 33-FZ;

-                   Federal Law "On the Protection of Atmospheric Air" dated 05/04/1999 No. 96-FZ;

-                   Federal Law Technical Regulations on Fire Safety Requirements dated 07/22/2008 No. 123-FZ;

-                   Requirements for anti-terrorist protection of facilities (territories) of the Ministry of Construction and Housing and Communal Services of the Russian Federation and organizations under its jurisdiction (approved by Decree of the Government of the Russian Federation dated October 17, 2016 N 1055;

-                   Federal Law No. 68-FZ dated 12/21/1994 on the Protection of the Population and Territories from Natural and Man-Made Emergencies;

-                   Federal Law No. 184-FZ dated December 27, 2002 "On Technical Regulation";

- Technical Regulations of the Eurasian Economic Union "On the safety of equipment for children's playgrounds";

- Technical regulations of the Customs Union "On the safety of furniture products";

- Technical Regulations "On the safety of buildings and structures" dated 12/30/2009 No. 384-FZ;

-                   Resolution of the Government of the Russian Federation dated 05/28/2021 No. 815 "On Approval of the List of National Standards and Codes of Rules (Parts of such Standards and Codes of Rules), as a result of which Compliance with the Requirements of the Federal Law "Technical Regulations on the Safety of Buildings and Structures" is mandatory;

- SP 118.13330.2012 "SNiP 31-06-2009 Public buildings and structures";

- SP 59.13330.2020 "SNiP 35-01-2001 Accessibility of buildings and structures for people with limited mobility";

-                   Order of the Federal Agency for Technical Regulation and Metrology dated 04/02/2020 No. 678 "On approval of the List of documents in the field of standardization, as a result of which, on a voluntary basis, compliance with the requirements of Federal Law No. 384-FZ dated December 30, 2009 "Technical Regulations on the Safety of Buildings and Structures", etc.

Approximately the same list of normative documents implementing technical regulation in design is given by Shadrina E.G., Krasilnikova E.E. in the article "Technical regulation and rationing in the design environment" ^[2].

The regulation of intellectual property rights in the domestic field of design is carried out by the following main regulatory legal acts:

-                   The Paris Convention for the Protection of Industrial Property (dated March 20, 1883, as amended, ratified by Decree of the Presidium of the Supreme Soviet of the USSR dated September 19, 1968 No. 3104-VII "On Ratification of the Stockholm Act of the Paris Convention for the Protection of Industrial Property and the Convention Establishing the World Intellectual Property Organization");

- Part Four of the Civil Code of the Russian Federation (entered into force on January 1, 2008 by Federal Law of the Russian Federation No. 231-FZ of December 18, 2006);

-                    Regulations on patent and other fees for legally significant actions related, inter alia, to a patent for an industrial design (approved by Decree of the Government of the Russian Federation dated December 10, 2008 No. 941);

- Administrative regulations for the execution by the Federal Service for Intellectual Property, Patents and Trademarks of the state function of organizing the acceptance of applications for an industrial design and their consideration, examination and issuance of patents of the Russian Federation for an industrial design in accordance with the established procedure (approved by Order No. 325 of the Ministry of Education and Science of the Russian Federation dated October 29, 2008);

- Guidelines for the implementation of administrative procedures and actions within the framework of the provision of public services for the state registration of an industrial design and the issuance of a patent for an industrial design, its duplicate (approved by FIPS Order No. 11 dated January 20, 2020).

The regulatory regulation of determining the regulatory cost of design work on the development of design projects has a much smaller regulatory framework and is reduced to almost two documents developed by the Ministry of Construction of the Russian Federation, there are no regulatory documents in the form of codes or federal laws:

-                   Order of the Ministry of Construction and Housing and Communal Services of the Russian Federation dated October 01, 2021 No. 707/pr "On approval of the methodology for determining the cost of work on the preparation of project documentation" (as amended. Order of the Ministry of Construction of the Russian Federation dated 06/08/2023 No. 409/pr);

-                   Order No. 848/pr of the Ministry of Construction and Housing and Communal Services of the Russian Federation dated November 28, 2023 "On the establishment of standard costs for the preparation of project documentation for the construction and reconstruction of residential and civil facilities".

According to the Order of the Ministry of Construction and Housing and Communal Services of the Russian Federation dated October 01, 2021 No. 707/pr "On approval of the methodology for determining the cost of work on the preparation of project documentation" (as amended. The order of the Ministry of Construction of the Russian Federation dated 06/08/2023 No. 409/pr) the cost of services for the development of a design project is not taken into account in the project documentation: "the prices of standard costs for work on the preparation of project documentation do not take into account the costs of the following works and services, unless otherwise specified in the standard costs for design work: engineering services not related to design marketing services for market research and advisory services on marketing management issues, including issues of promoting the results of project activities to the consumer, pricing, design and other issues related to the marketing strategy and operations of the design object, corresponding to Class 73 and type 70.22.13 OKPD 2 "OK 034-2014 (KPES 2008). The All-Russian classifier of products by types of economic activity"performed on behalf of the developer (technical customer), performing the functions of a technical customer".

 In the same regulatory document, the Ministry of Construction of the Russian Federation states that the cost of preparing artistic and decorative solutions for buildings and structures (interiors, individual furniture, equipment, design and advertising elements, special graphics and other artistic works), except for general construction interior solutions, is determined by the standard costs for this type of work, and in cases of their absence, the "cost The design work of a construction object is determined in the following ways:

a) by analogy for comparable types (types, categories) of design objects and types of design work;

b) in accordance with the calculation of the cost of designing the facility;

c) according to the most economical option, determined on the basis of collecting information on current prices using data determined by the method of comparable market prices (market analysis) in accordance with Part 1 of Article 22 of Federal Law No. 44-FZ of April 5, 2013 "On the contract system in the field of procurement of goods, works, services to ensure state and municipal needs".

When determining the cost of design work by analogy for comparable types (types, categories) of design objects and types of design work, it is allowed to use appropriate guidelines for the application of indicators and standards for the price of design work, correction coefficients, indicators of the relative cost of developing sections of the design and corresponding sets of working documentation. In this case, the methodology determines the value of the normative cost of design as the sum of the parameter of the price of design work (a is a constant value expressed in thousand rubles) and the product of the parameter of the price of design work (b is a constant value having the dimension of thousand rubles per unit of natural indicator) and the value of the natural indicator of the projected object (X). The basic price level – prices in 2000.

In accordance with the cost calculation, the cost of basic and additional design work, related work and expenses is determined. The cost of work and expenses in accordance with the cost calculation is determined according to the provisions of the Methodology as the product of the following indicators:

- average daily output of one direct contractor, rubles;

- the planned duration of the project work provided for in the cost calculation, days;

- the total number of direct executors-designers engaged in the execution of design work provided for in the cost calculation, people.;

- a correction factor that takes into account the degree of participation of performers of various qualifications in the performance of project work provided for in the cost calculation (qualification-participation coefficient).

The most economical option, determined on the basis of collecting information on current prices using data determined by the method of comparable market prices (market analysis), involves setting the price for the development of a design project at the level of the initial maximum contract price based on information on market prices of identical services planned for procurement.

Of high practical importance is the regulation of approximate volumes of work on linking re-applied design documentation for individual elements of buildings and structures as a percentage of the price of standard costs for design work, which greatly simplifies the determination of the standard cost of processing the project.

The Order of the Ministry of Construction and Housing and Communal Services of the Russian Federation dated November 28, 2023 No. 848/pr "On the establishment of standard costs for the preparation of project documentation for the construction and reconstruction of residential and civil facilities" defines the procedure for calculating standard prices for the development of projects involving funds from the budgets of the budgetary system of the Russian Federation, funds of legal entities, created by the Russian Federation, subjects of the Russian Federation, municipalities, legal entities, the share in the authorized (stock) capitals of which of the Russian Federation, subjects of the Russian Federation, municipalities is more than 50 percent, as well as capital repairs of an apartment building (common property in an apartment building), carried out in whole or in part at the expense of a specialized non-profit organization, which carries out activities aimed at ensuring the overhaul of common property in apartment buildings, homeowners' associations, housing, housing and construction cooperatives or other specialized consumer cooperatives or funds of owners of premises in an apartment building, based on the following characteristics of the project:

- the functional purpose of the object;

- the value of the natural indicator of the object;

- design work price parameters;

- coefficients of increase in cost/reduction of work, including the conversion of base prices to current ones.

Also, when calculating the cost, the Methodology involves splitting the total cost of the design work:

- by type of documentation for all types of facilities: project documentation 60%, working documentation 40%,

- according to the cost of design work according to sections of the design documentation and the corresponding sets of working documentation for construction, depending on the functional purpose of the design object.

Of great practical importance, in our opinion, is also the fact that in the order of the Ministry of Construction No. 848/pr, the base prices are the prices of 2021, which indicates that the design technologies included in the calculation correspond to the current period in terms of obsolescence, as well as the correction coefficients used in determining the cost of work on the preparation of the design and (or) working documentation containing materials in the form of an information model.

Of particular interest in determining the regulatory cost of developing a design project, in our opinion, are the "Recommendations for determining the amount of remuneration (fee) of the author (creative team) for creating works of fine art, artistic design and construction, scripts of works MPP-3.2.08.03-11", developed by specialists of the UP "NIAC" (Dronova I. L., Igoshin E. A., Minaeva A.V.) with the participation of experts from Moskomexpertiza (Minin V. N.), approved and put into effect by the Order of the Committee of the City of Moscow on pricing policy in construction and state expertise of projects in 2011. A distinctive feature of this document is that, unlike the orders of the Ministry of Construction, the document takes into account as much as possible not just the specifics of the design, but the specifics of the design in the design. The document includes basic rates for calculating royalties (royalties) for the creation of works of easel painting and easel graphics, monumental and decorative works in various techniques, monumental, monumental and decorative, memorial and easel sculpture, decorative and applied art, posters, scenography, artistic design and artistic construction, artistic and graphic works for printing, etc., as well as recommendations on dividing the amount of remuneration by stages of design design, including taking into account the amount of author's supervision, depending on the type of design project (easel painting and graphics, artistic and graphic works, works of monumental and decorative painting in various techniques, works of decorative and applied art, sculptural works, works of artistic design and construction, including artistic interior design, works of set design). The base prices of the document are the prices of 2000.

As can be seen from the list of regulatory documents of the Ministry of Construction of the Russian Federation, the regulation of calculating the regulatory cost of developing design projects is a relatively young phenomenon in the domestic practice of regulatory pricing in design: the first document appeared in 2021, and its revision regulating the issues of determining the value of the regulatory cost of developing design projects was carried out in June 2023, the second – in November In 2023. Before the appearance of these two orders of the Ministry of Construction of Russia, there was only one document that was not mandatory, but advisory in nature in justifying the value of the normative cost of developing a design project: in his article, Smirnov V. N. emphasizes the need to use the Recommendations of the Union of Designers of Russia to form the economic competencies of students in the field of training "Design" ^[3].

"Prices for the development of design projects. Recommendations on determining the amount of royalties for the creation of design works" were developed by the team of authors of the Union of Designers of Russia under the leadership of Mikhailov S. in 2010 and for more than ten years have been the only document offering a methodological basis for calculating the regulatory cost of developing design projects ^[4]. It should be noted that these recommendations are of an applied nature, have a high level of professional elaboration and at the same time are quite easy to apply by both professional designers and students in the field of Design ^[3,5,6].

The base prices of the Recommendations are the prices of 2010, which requires adjustments when determining the current cost of developing design projects. Recommendations as a methodology for calculating the cost of developing a design project, the following methodology is proposed: the cost of design is calculated as the product of the natural indicator of the design object by the cost of a unit of natural indicator. The undoubted advantage of the Recommendations of the Union of Designers of Russia is the classification of design objects for calculating the cost of work on their design by market segments that are classic for the field of design:

1) object design (industrial products, furniture and interior equipment, outdoor equipment and visual communications, art design objects, clothing, shoes, haberdashery);

2) architectural environment design (interiors, expodesign, urban environment design and landscape design, coloristics, artistic lighting, architectural objects, their fragments and details);

3) Graphics, packaging and web design;

4) comprehensive design programs;

5) consultations, lectures, reviews, expert and research activities.

For all the listed types of project activities, the design provides ranges of the possible cost of project development, which allows, when justifying the cost of developing a design project, to take into account its uniqueness, complexity, physical volume of the object, competence and experience of the designer-developer, choosing from the minimum possible value to the maximum. The authors of the Recommendations also provide data on each of the above-mentioned design directions in relation to the recommended stages and the cost of each stage of its implementation (pre-design studies, development of a project concept, design proposal, sketch design project, technical design project, forproject, technological design project, etc.), as well as the value of the cost of work on the author's supervision as a percentage of the cost of project development.

Discussion of the research results

The analysis of the content of normative legal documents regulating the methods of substantiating the normative cost of developing a design project, and the Recommendations of the Union of Designers of Russia, allows us to identify the main advantages and disadvantages of methods for determining the normative cost of developing design projects.

With regard to the methods that are mandatory in the design of facilities, the creation of which is carried out at the expense of the consolidated budget of the Russian Federation, the undeniable advantages are:

- ease of application of techniques, simple mathematical apparatus;

- the use of base prices in 2021, which, in our opinion, indicates the consideration of the use of modern technologies in the design, which ensures maximum consideration of obsolescence in the design;

- the use of coefficients of increase in the cost of design work when used in the calculations of base prices in 2000;

- the ability to determine the standard cost of processing a project by linking re-applied design documentation for individual elements of buildings and structures as a percentage of the price of standard costs for design work, which greatly simplifies the justification of the cost of work;

- the possibility of taking into account the participation of performers of various qualifications in the performance of project work provided for in the cost calculation (qualification-participation coefficient).

The disadvantages of methods for justifying the cost of developing design projects in the regulatory documents of the Ministry of Construction of the Russian Federation should be identified:

- lack of specification of design design directions in relation to design objects (subject design, architectural environment design, graphic design, etc.);

- the discrepancy between the recommended stages of design work (by type of documentation, design and working, by the cost of design work according to sections of project documentation and the corresponding sets of working documentation for construction, depending on the functional purpose of the design object) to the specifics of design in the field of design (forproject, technological design project, author's supervision, etc.).

The two above-mentioned disadvantages of the methods are fully resolved in the Recommendations of the Union of Designers of Russia and are the undeniable advantages of this document, taking into account the specifics of the designer's design activity as much as possible, depending on the design object, when forming the cost of developing a design project.

The main drawback of the Recommendations for determining the amount of royalties for the creation of design works are:

- the absence of an indication in the methodology of the need to convert the base prices of 2010 to the current ones;

- the lack of a mechanism for calculating the cost of the project when replicating it and making minor changes.

Quite a successful solution, in our opinion, to use these advantages of the methods and minimize the disadvantages of the analyzed methods is a normative document developed for the city of Moscow Recommendations on determining the amount of remuneration (fee) of the author (creative team) for the creation of works of fine art, artistic design and construction, scripts of works, however, it cannot be used by the subjects of the Russian Federation Due to the legal legitimacy of the Federation, as well as due to the absence of all existing segments of the design design market in it today.

Conclusions and further research directions

The conducted research allows us to state that the currently existing methods for determining the value of the cost of developing a design project, which are mandatory according to the orders of the Ministry of Construction of the Russian Federation and Recommendations of the Union of Designers of Russia are imperfect. In our opinion, the main direction of possible improvement of existing domestic methods should be their symbiosis and the development of new regulatory legal documents, which, on the one hand, will have high scientific validity in terms of calculating the cost at current prices, which is inherent in the regulatory regulation of the Ministry of Construction and Housing and Communal Services of the Russian Federation, and on the other On the other hand, it is necessary to take into account as much as possible the applied specifics of designing objects in the field of design and detailing their cost by stages of design design, which are presented in detail in the developments of the professional community.