Have you ever come across the acronym CUB in the construction or real estate market and wondered what it means? After all, what does CUB mean? What does CUB mean? What is CUB? CUB stands for Basic Unit Cost of Construction. It is a monetary indicator that shows the basic cost for civil construction. Its basic objective is to regulate the real estate development market, serving as a parameter in determining the costs of the civil construction sector. Check out below an excerpt from the text taken from the Sinduscon-PR website that shows how CUB is calculated: How CUB is calculated (NBR-12.721/2006) History. Law 4,591 of December 16, 1964 (article 54) provides that the Civil Construction Industry Unions are required to disclose monthly, by the 5th of each month, the unit construction costs to be adopted in the respective jurisdictional regions, calculated based on the various representative standard projects for residential (R1, PP4, R8, PIS, R16), commercial (CAL8, CSL8 and CSL16), industrial warehouse (GI) and popular residence (RP1Q), taking into account the batches of inputs (materials and labor), administrative expenses and equipment and with their respective weights constant in the tables of NBR-12.721:2006 of ABNT. Purpose. Determine the overall cost of the work for the purposes of complying with the provisions of the law on the incorporation of residential buildings into condominiums, emphasizing that the Basic Unit Cost (CUB) is merely a guideline cost for the Civil Construction sector, and is never the real cost of the work, since this is only obtained through a complete budget with all the specifications of each project under study or analysis. However, today the monthly percentage variation of the CUB has served as a mechanism for price adjustments in contracts for the purchase of apartments under construction and even as a sector index. Methodology for calculating CUB/m2? Data collection. The salaries and prices of materials and labor, administrative expenses and equipment provided for in NBR-12.721:2006 are obtained through the collection of information from a sample of approximately 40 construction companies. Acting in this way, the universe of the research is from the buyer's perspective, eliminating a series of distortions in relation to the provision of data. Since the indicator to be calculated refers to cost and not price, it is more correct to research with the buyer, who in this case are the construction companies and not with the distributors or sellers. Statistical treatment. The statistical treatment is for small samples, for this reason the Student table is used. The calculation itself. The calculation of the unit cost of construction per square meter is the sum of the combinations - prices x weights of the inputs, for each specification. These specifications are classified, by finishing standard and number of floors: A: Residential Floors: 1, 4, 8 and 16 Finishing standard: low, normal and high. C: Commercial Floors: 8 and 16 Finishing standard: normal and high. GI: ​​Industrial Warehouse RP1Q: Popular Residence 1 Bedroom Thus, the types of Residential CUB provided for in the standard reach 11 specifications. The basic batch of each project is composed of 29 inputs (25 for materials, 2 for labor, administrative expenses (engineer) and equipment (concrete mixer). Disclosure. In compliance with the provisions of art. 54 of Law 4.591/64, the Civil Construction Industry Unions are required to disclose the CUB by the 5th of the following month, adopting, as a reference for the indicator, the month of publication and collection of prices and wages. Therefore, the CUB to be used is that of the month prior to the date of its disclosure. Example: The CUB for the month of February 2020 is disclosed at the beginning of March 2020. ========= Find me on social media: Instagram: / brunolessa.mkt Linkedin: / lessabruno Facebook: https://www.portalvgv.com.br/portalvgv Twitter: / portalvgv ========= DISCOVER THE BEST BOOKS ABOUT THE REAL ESTATE MARKET: https://banca.grupovgv.com.br?utm_source=youtube TALKS AND TRAINING FOR THE REAL ESTATE MARKET: https://www.portalvgv.com.br/palestra... MARKETING AND SALES CONSULTANCY FOR DEVELOPERS: https://grupovgv.com.br/hub?utm_sourc... SERVICES FOR REAL ESTATE AGENCIES: https://grupovgv.com.br/imobiliarias?... Subscribe to the VGV Bulletin for FREE and receive news about the real estate market in your region directly to your email: https://www.portalvgv.com.br/boletimv... ========= Find me on social media: Instagram: / brunolessa.vgv Linkedin: / lessabruno Facebook: https://www.portalvgv.com.br/portalvgv Twitter: / portalvgv