The FGD in the construction industry, or how to triumph in the construction market arena

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 building industry?

The definition

But what exactly is the DPGF?

The Decomposition du Prix Global et Forfaitaire, or DPGF, is a fundamental document for all self-respecting construction companies. It details all the elements that make up a service within the framework of a public or private contract, such as prices, supplies and quantities.

The DPGF is also part of the dossier de consultation des entreprises (DCE) and is often accompanied by the CCTP (cahier des clauses techniques particulières), used in particular for calls for 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 FGD?

The FMPD breaks down all the financial aspects of a construction project in order to establish the overall budget. But what does it actually do?

The idea is to be able to define very clearly why you're paying a given sum, so 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 DPGF is not obligatory or contractual, unless the contract requires it. That said, it's best to complete the document to demonstrate professionalism and reliability. It also meets the requirements of transparency and competition, which are essential for public procurement.

DPGF, 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 list, 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, the BPU will list the price per square meter.

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

The DQE, on the other hand, estimates the quantities required. To take our painting example again, it's the DQE that lists how many square meters need to be painted.

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

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

The contents of a FGD in the building industry

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

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

Description of works, lots and materials

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

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

👉 Clear, simple identification makes it easy to understand the nature of the work and the materials used, so there's no need to jump through hoops.

Detailed offer description

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

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

👉 This part allows you to provide more details on each element of the project, and understanding is necessary to avoid any misunderstanding or conflict.

Unit prices excl.

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

Back with our reinforced concrete, here's what this part gives: "€85 per cubic meter of reinforced concrete, including materials and labor."

👉 VAT is to be added later in the FMPD. The price before tax makes the basic cost of each item clearer.

Quantities to be planned

It's good to have the unit price, but it's even better to have the quantity. It's in this part of the FMPD that you'll indicate your estimate of the total volume of materials needed, as well as the total number of man-hours required.

Here's what it looks like for our reinforced concrete: "Estimated 300 cubic meters 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 material and labor 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 construction phase or element 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 excl.

After the subtotals comes the grand total part of the project cost. Simply take all the subtotals for the project and add them together.

In our example, reinforced concrete is one subtotal among many, but it does not constitute the project on its own. For your FGD, 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 FGD to your project. The aim here is to get 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, calculated from the total before tax.

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

👉 Please note, however, that the applicable rate varies according to the type of work you're carrying out (emergency, energy renovation, new construction, etc.). It may be 5.5%, 10% or 20%. Make sure you don't make a mistake.

Summary of costs incl. VAT

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

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

👉 This summary is essential for the customer, and in fact it's the first line of your FGD that he's 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 I go about it?

A few drafting tips

The FMPD is a guarantee of reliability for your company. You need to take the time to draw up a clear and precise document, to put all the chances on your side.

💡 How about a few drafting tips?

• 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 crystal-clear basis for negotiations and adjustments. By the way, 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, an omission on your part. This error can call your reliability into question, and, unsurprisingly, that's not a good thing.
• To avoid oversights, draw up a checklist with all the elements you need to include in your FGD. This simple list will make your task easier and ensure a quality document.
• Finally, draw up your FGD in chronological order of the worksite. This gives the buyer a coherent view of the project, and ensures that cash flow is in line with the project.

Software to help you

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

I can hear you asking, "But what's the difference with good old Excel?", and you're right to ask.

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

This is exactly what Graneet, a software package designed for SMEs in the building and civil engineering sector, offers with its DPGF import function. This means that you can automatically enter tender figures into the tool, without having to re-enter them. This feature promises significant time savings, while reducing the risk of errors. In short, simplified financial and administrative monitoring awaits you.

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Building FGD 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 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 ! 🚀