LBN 501-17 "Procedures for the determination of construction costs" is the Latvian construction standard approved by Cabinet Regulation No. 239 of 3 May 2017, in force since 27 May 2017, replacing LBN 501-15. It sets out how construction costs are calculated and defines the standard estimate forms.
It is binding for construction whose clients fall under the Public Procurement Law and the Public Service Providers Procurement Law. For a private client it is not formally mandatory — but the structure has become the industry norm.
Cost groups
An estimate covers direct construction costs, overheads, profit, and other client costs related to construction that are not construction work (those appear only in the client's summary estimate). Direct costs include materials with delivery to site, procurement, packaging, production losses and normed consumption; labour; the contractor's taxes except VAT; and plant and equipment hire, operation and depreciation.
Two practical points: wages in an estimate are gross, including employer payroll taxes, and overheads and profit must also be shown as a percentage of direct costs.
The forms
The regulation has ten annexes. The ones you meet in practice are the local estimate (a detailed calculation for one type of work), the summary calculation by work type or structural element, the construction summary estimate, the bill of quantities prepared by the designer, and the cost calculation form breaking a single line into materials, transport, plant and labour.
The required set depends on the projected cost: under €71,150 a local estimate is enough; between €71,150 and €142,290 local estimates plus a summary estimate; above €142,290 all three levels.
Project estimates must be drawn up or countersigned by a certified construction specialist. The full text is on likumi.lv.