“Ukraine changed the rules for determining construction costs and builders’ salaries: what is envisionedThe Ukrainian government has established uniform rules for forming the cost of construction works for state-funded projects and
updated the approach to calculating builders’ wages. The new rules will be in effect during martial law and for one year after its
termination.
”, — write: unn.ua
DetailsThe government resolution, as stated, establishes uniform rules for forming the cost of construction works for projects financed by state funds.
“We are reforming the pricing system, focusing on a modern, market-based approach, where everything is based on real data and open sources,” said Deputy Prime Minister for Reconstruction – Minister of Communities and Territories Development Oleksiy Kuleba.
The new rules will be in effect during martial law and for another year after its completion.
What is envisionedThe resolution provides for:
- a unified approach to determining overhead and administrative costs, as well as profit. Clear percentage benchmarks are set: 10% for overhead, 3% for administrative costs, and 15% profit from direct costs. This should make the calculation of construction costs understandable, fair, and transparent for all market participants;
- an updated approach to calculating wages. The wages of builders must not be lower than the minimum industry guarantees defined in the joint agreement between the Ministry of Development and the trade union. And in difficult or dangerous conditions, in particular in areas of active or possible hostilities, the level of payment may be additionally increased;
- the creation of a Database of prices for building materials, which will be included in the Unified State Electronic System in the Field of Construction (USESSC). It will collect data on market prices for materials from various sources, including: Prozorro, customs and tax statistics, manufacturers’ price lists. This should allow comparing estimated prices with market prices and preventing their overestimation;
- the introduction of a Construction Products Classifier. It will become a single digital directory that will streamline the names and characteristics of materials. This should allow all market participants to “speak the same language” and will become the basis for the Database of prices for building materials.
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