More than 500 communities and regional military administrations have signed a joint memorandum setting out new rules for calculating the cost of work during restoration projects.

Oleksii Kuleba, Deputy Prime Minister for Restoration of Ukraine – Minister for Development of Communities and Territories of Ukraine, emphasised that this is an important step for the entire system of restoration.

‘This Memorandum is about mutual responsibility, cooperation, and joint work on restoration. It confirms a commitment to transparent rules and adherence to integrity, openness, and accountability. The document outlines mechanisms for coordination, information exchange, and involving a wider range of participants in implementing projects to rebuild housing, social infrastructure, energy facilities, the water supply, and other critical systems,’ said Oleksii Kuleba.

The Memorandum is open to anyone implementing restoration projects, and it will form the basis for the further expansion of joint efforts.

Recently, the Government adopted a resolution to establish uniform, predictable, and transparent rules for determining the cost of construction work on all projects funded by the state budget or donors. The Ministry for Development collaborated with a specialised working group, anti-corruption organisations and international partners on the document.

Previously, the approach to cost determination could vary significantly, even for identical work. The new rules establish a common ground on which customers and contractors can work together using a consistent approach. These rules are based on up-to-date data, a unified approach, and clear cost standards. After the launch of the state price database, the cost of materials will be based on average values that will be automatically entered into the Unified State Electronic System in Construction. Currently, the cost of materials is based on actual offers. This ensures that estimates are reasonable, understandable and predictable for everyone involved in the restoration project, as well as for donors.

Standard costs are regulated separately: general production costs should not exceed 10% of direct costs; administrative costs, 3%; and the contractor’s profit, 15%.

It is important that restoration projects stipulate minimum wages in accordance with the Sectoral Agreement and provide coefficients for work in combat zones to increase wages. This approach protects workers and ensures fair working conditions.

All construction materials are assigned a unified code through the Construction Products Codifier. This enables a correct range of market prices to be formed and ensures that all market participants have the same understanding of each item.