Construction cost estimates: The government promises to make the system more transparent
29 April 13:34
The government has changed its approach to calculating wages in publicly funded construction projects, which is expected to reduce opportunities for manipulation in cost estimates.
This was reported by the Ministry of Community and Territorial Development, according to "Komersant Ukrainian".
“The Ministry of Development has initiated changes that bring construction workers’ wages closer to real market conditions and make the system more transparent,” the statement said.
The ministry notes that the relevant changes have already been approved by the government, and this decision is part of a broader reform and improvement of legislation in the field of urban development.
Salaries in cost estimates will be closer to market rates, the ministry promises.
“Previously, they were often underestimated and did not correspond to actual payments. Now, the level is determined by the client, but not lower than the average construction wage in the region,” the statement reads.
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What is changing
The updated calculation formula provides for a coefficient to be applied to the average wage. Specifically, a coefficient of 3 applies if the wage is less than 13,000 UAH, a coefficient of 2 applies if it is between 13,000 and 30,000 UAH, and a coefficient of 1.5 applies if it exceeds 30,000 UAH.
“As a result, the estimated salary will be approximately 30,000–60,000 UAH,” the statement says.
Payment is made only upon verification. The contractor receives compensation only for salaries actually paid. Now, along with certificates of completion, actual payments to employees must be verified.
“This means fair pay for construction workers, less manipulation in estimates, transparent rules for business, and alignment with real market conditions,” the Ministry of Development assures.
Recall: Earlier, the government announced that it was introducing a new approach to procurement in publicly funded construction projects and changing the approach to pricing in construction to bring estimates closer to real market conditions.
In addition, a package of decisions was adopted to simplify construction regulations and accelerate reconstruction.
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