The FMPD in the building industry, or how to triumph in the arena of the construction market

The FMPD in the construction industry is essential for any company wishing to stand out from its competitors. But how do you go about it?

Don't panic, if the task seems daunting, we'll guide you through the art of the FMPD 😉

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What is a FMPD in the construction industry?

The definition

But what exactly is the DPGF?

The Breakdown of the Total and Fixed Price, or DPGF, is a fundamental document for all self-respecting building companies. It details all the elements that make up a service under a public or private contract, such as prices, supplies and quantities.

The FMPD also forms part of the tender documents (DCE) and is often accompanied by the CCTP (special technical specifications), used in particular for invitations to tender and other consultation procedures.

In short, the DPGF is the key document that sheds light on how the overall price is constructed. 🔦

What is the purpose of the FMPD?

The FMPD breaks down all the financial aspects of a construction project in order to establish the overall budget. But in practical terms, what is it used for?

The idea is to be able to define very clearly why you are paying a given sum, so that you can then better compare different proposals. This document is therefore particularly useful for project managers or buyers, who must then ensure that the proposal is consistent with the specifications and the general project presentation document.

💡In principle, the FMPD is not compulsory or contractual, unless the contract requires it. That said, it is better to complete the document to show its professionalism and reliability. It also meets the requirements of transparency and competition, which are essential for public procurement.

FMPD, BPU, DQE... What are the differences?

The DPGF can quickly be confused with the BPU and the DQE. .. So many words that we don't know where to turn. 🤯 But don't panic, after this short explanation, you won't make the mistake again.

The unit price schedule, or BPU, lists and details all the prices for each unit of work or material used in the project. For example, if a project requires painting work, the BPU will list the price per square metre.

👉 It allows you to understand the unit cost without having to look at the total quantity.

The estimate of quantities, or DQE, estimates the quantities required. To take our painting example again, it's the DQE that lists how many square metres need to be painted.

👉 It helps to predict the total quantity without having to look at the unit cost.

As you can see, the FMPD combines the information from these two documents into a single document to provide a complete and accurate picture of the overall cost of the project. Practical, isn't it?

The content of a FMPD in the building industry

As we have seen, the FMPD is a comprehensive document. Although there is no obligation to specify the content of a FMPD, there is a great deal of precise information that must be included to ensure that it is properly understood and valid in the eyes of buyers.

Here are the different elements you need to include in your FMPD to make it a reliable document.

Description of works, lots and materials

The heading groups and details all the elements relating to the project. You can include specific descriptions of the work.

For example, if you are proposing to lay reinforced concrete foundations, simply indicate this and add the specific materials: "Reinforced concrete foundations, including C25/30 class concrete and FE500 steel."

👉 A clear and simple identification makes it easy to understand the nature of the work and the materials used, so there's no need to go through the motions.

Detailed description of the offer

As the name suggests, the detailed description of the offer... details the offer. This is where you specify the specifics of each element of the project, such as the scope of the work and the standards to be met.

In the case of reinforced concrete, you can state "Reinforced concrete complying with EN 206-1 standards, with regular quality control".

👉 This part allows you to provide more detail on each element of the project, and understanding is necessary to avoid any misunderstandings or conflicts.

Unit prices excluding VAT

The unit price defines the cost of each unit of measurement. The price reflects all the direct and indirect costs associated with that unit.

Back with our reinforced concrete, here's what this part says: "€85 per cubic metre of reinforced concrete, including materials and labour."

👉 VAT is to be added later in the FMPD. The price excluding VAT makes the basic cost of each element clearer.

Quantities to be provided for

Having the price of the units is good, but having the quantity is better. It is in this part of the FMPD that you indicate your estimate of the total volume of materials required, as well as the total number of hours of work required.

Here's what it looks like for our reinforced concrete: "Estimated 300 cubic metres of reinforced concrete for the entire project."

👉 To estimate quantities, you need to study the project and its scope carefully. Planning quantities allows you to best anticipate the materials and work required.

Subtotals for each job

So far we've seen the quantities required and the price of each unit, but the FMPD doesn't stop there. The total cost for each phase or element of construction must of course be indicated.

What does this mean for our reinforced concrete? "Subtotal for reinforced concrete foundations: €25,500 excluding VAT."

👉 The price is always exclusive of tax. This line allows you to repeat all the previous information and explain the costs more concretely. At this level of the FMPD, you know what a given sum corresponds to.

Grand total excluding VAT

After the sub-totals comes the grand total part of the project cost. All you have to do is take all the sub-totals for the project and add them together.

In our example, reinforced concrete is one of several sub-totals, but it does not constitute the project on its own. For your FMPD, you'll have other subtotals. So let's assume we have others in our example and add them up: "Total project cost: €230,000 excluding VAT."

👉 Feel free to indicate the total cost as precisely as possible, obviously adapting the FMPD to your project. The aim here is to have an overall view of the general cost of a project.

Applicable VAT

You've presented the total cost of your project... but there's something missing, isn't there?

You still have to include the VAT applicable by law, which is calculated from the total excluding VAT.

For our FMPD, here's what it looks like: "VAT at 20% on the total excluding VAT, i.e. €46,000."

👉 Be careful though, the applicable rate varies depending on the type of work you're doing (emergency, energy renovation, new build, etc). It may be 5.5%, 10% or 20%. Make sure you check to avoid making a mistake.

Summary of costs including VAT

The summary of costs clearly defines the final cost of the project, plus all taxes. The calculation couldn't be simpler: you simply add the total before tax to the VAT amount.

An example of this line in our FMPD with reinforced concrete: "Total cost of the reinforced concrete project, including VAT: €276,000."

👉 This summary is essential for the customer, in fact it's the first line of your FGD that they're likely to look at

Example of a FMPD

As a picture is worth a thousand words, here's a more complete model of a FGD for the building industry.

The FMPD: how do you go about it?

A few drafting tips

The FMPD is a guarantee of reliability for your company. You should therefore take the time to draft a clear and precise document to put all the chances on your side.

💡 Would you like some drafting advice?

• A table with so much detail needs to be readable and clear. The reader (and potential buyer) needs to be able to find the key information quickly.
• Detail the elements precisely to provide a clear basis for negotiations and adjustments. What's more, you also reduce the risk of miscalculation if all your data is clearly indicated.
• Don't leave any blank lines. A blank line can lead to misinterpretation or, worse still, an omission on your part. This error could call your reliability into question and, unsurprisingly, that's not a good thing.
• To avoid oversights, draw up a checklist with all the items you need to include in your FMPD. This simple list will make your task easier and ensure that your document is of high quality.
• Finally, draw up your FMPD in chronological order of the worksite. This will give the buyer a coherent view of the project and ensure that the cash flow is in line with the project.

Software to help you

There are several solutions available to help you draw up your FMPD: Microsoft Word, Excel, etc. While these tools are easily accessible and already well known, other software packages are available to help you draw up your FMPD.

I can hear you asking, "But what's the difference between this and good old Excel?

☝️ Software specialising in the building industry is preferable, as it offers tools specific to this sector and adapted to this type of request (site management, communication with the various teams, management of administrative documents, etc.). And as far as the FMPD is concerned, it's not too much to ask.

That's what Graneet, a software package designed for SMEs in the building and civil engineering sector, offers with its FGD import function. This means that you can automatically calculate the cost of invitations to tender in the tool, without having to re-enter them. This feature promises to save you a significant amount of time, while reducing the risk of errors. In short, simplified financial and administrative monitoring awaits you.

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The Building FMPD in a nutshell

In short, the FMPD is an essential element in the building industry. This document brings transparency and structure to the financial management of projects, two elements that are sure to make you stand out from the competition! It may seem tedious to draw it up, but the benefits it brings are well worth the effort.

The FMPD represents your reliability in the eyes of buyers, so why not put all the odds on your side? With it, you have all the cards in your hand to land a contract ! 🚀