Cabinet updates state-financed construction estimates

The Cabinet has updated an estimate monitoring procedure for construction projects to be built with use of state/local budgets and funds of state enterprises/organizations, the Information-Analytical Bulletin of the Cabinet of Ministers of Ukraine informs.

The government’s resolution cancelled the mandatory inspection commissions. It also replaced the inspection reports and submission of requests to building clients and construction company managers that were inspected, to correct the detected non-conformances, finalize mutual settlements, and return of the required amounts with inspection recommendations to be sent to building clients with listing of the detected non-conformances and a proposal to provide the Ministry of Regional Development, Construction, and Housing-Communal Services with appropriate clarifications within a month.

Compliance with regulatory requirements and standards for estimating cost of construction of facilities to be built for budget funds, funds of state or municipal enterprises, institutions and organizations, and loans granted under state guarantees will be verified by the Ministry of Regional Development. Construction clients and, if necessary, other participants of investment activities (design organizations, contractors, enterprises, institutions, and other business entities that provide the relevant services) are subject to inspection.

To carry out the inspection, the ministry will develop the inspection plan and, if necessary, nominate the inspection commission, origanize its work, and ensure methodological and normative support of the inspection.

The inspection will result in recommendations (according to format approved by the Ministry of Regional Development), identifying the main non-conformances of pricing procedure valid at the moment of payment for completed construction and indicating the over-estimating which shall be settled. In case of disagreement with facts stated in recommendations, the client is entitled to submit within a month a letter to the Ministry with clarifications and appropriate supporting documents.