Materials are several times more expensive than market prices: what was found in the renovation estimate in Odessa
17 March 17:06
Analysts from the civic project Dozorro have reported a possible overestimation of the cost of construction materials in the cost estimate for emergency repairs at a residential building in Odesa, according to [Komersant].
The building in question is a three-story structure located at 51 Novoselsky Street in the Primorsky District. The building has been damaged multiple times as a result of Russian shelling, with the most recent strike occurring in November 2024, when it was hit by a Shahed-type drone.
The total cost of the contract for emergency repairs is 11 million hryvnias, and the work is scheduled to be completed by the end of 2027.
What is suspected to be the cause of the overpayment
According to analysts, the project estimate allocates 6.4 million hryvnias for construction materials.
However, an analysis revealed a potential price inflation of approximately 28%, which could amount to about 1.8 million hryvnias.
The largest potential overpayment was identified in one of the key materials.
“Analysts calculated the largest likely overpayment—1.2 million hryvnias—for M25-35 shell limestone,” Dozorro notes.
According to their data, the contractor included 7,200 UAH per cubic meter in the estimate, which, according to the project’s assessment, is 4–9 times more expensive than market offers.
Another overpriced material
Analysts also drew attention to the 100 mm thick Izovat LS insulation.
In the estimate, its cost is 350 UAH per square meter.
“This price is two, and in some cases three, times higher than the market rate,” according to the Dozorro report.
Who is performing the work
The contract for emergency repair work was signed with the company “Odesgolovpostach” Repair and Construction Division.
The contractor is required to:
- dismantle the damaged structures
- repair the foundation
- restore the walls
- repair the building’s floors.
According to analysts, the company has been operating since 1998 and is registered in Odesa.
Its owner is businessman Alexander Friedman.
Reaction and possible price revision
Dozorro analysts have already sent the client an official letter with calculations and a request to review the prices in the estimate.
“Since the contract was concluded with a dynamic price, the cost of materials during the execution of the work can be adjusted,” the project notes.
This means that if the estimate is revised, prices may be lowered during the execution of the work.
Previously, journalists from Slidstvo.Info drew attention to this company’s activities.
According to their data, despite previous criticisms of the firm’s work, in 2019 its owner received an honorary award from then-Mayor of Odesa Hennadiy Trukhanov on Builder’s Day.
The issue with the cost estimate became yet another example of how civic analysts scrutinize spending on the restoration of war-damaged buildings.
