The Government updated the rules determining the cost of construction projects funded from the state and local budgets, including international aid. The amendments to Resolution No. 1512 aim to simplify the implementation of small-scale projects, make the process of setting prices for construction materials more flexible, whilst maintaining transparency in the use of public funds.

The updated mechanism was developed in consultation with communities, the professional and expert communities, construction market participants, anti-corruption organisations, and the State Audit Service of Ukraine.

‘At every meeting in communities, the topics of pricing and reconstruction are among the key issues. We hear the communities’ concerns and have worked to ensure that no additional barriers are created to the implementation of important social and other infrastructure projects in the regions, whilst maintaining transparency in the use of funds. Our shared focus is on simple and clear rules that ensure the effective and transparent use of public and international resources. Public funds are, after all, people's money, paid in the form of taxes to budgets at different levels. It is important that we have managed to develop and adopt the decisions that communities have been awaiting for several weeks,’ said Vitalii Bezgin, Minister for Communities, Territories and Internally Displaced Persons of Ukraine.

Key changes include:

• for projects worth up to UAH 1.5 million, the number of procedures will be reduced. The client will independently determine the procedure for price analysis and retain the relevant document in their own records, without uploading it to the Price Database in the Unified State Electronic System for the Construction Sector in Ukraine;
• for projects worth more than UAH 1.5 million, the requirements for the analysis of material prices will depend on their impact on the total construction cost;
• the price analysis may be commissioned to external specialists or specialist organisations on a contractual basis;
• it will be easier for clients to work with suppliers of construction products. Suppliers will have up to five working days to respond about prices, and manufacturers’ price lists and electronic bids from the Price Database within the Unified State Electronic System for the Construction Sector in Ukraine will be treated as official commercial bids;
• manufacturers will be able to enter information into the Price Database free of charge via an API. The published prices will be for information purposes only and will serve as a guide for those involved in the construction process;
• the responsibilities of those involved in construction at all stages have been defined more clearly: from the preparation of cost estimate documentation and the setting of the contract price to the execution of the works.

Transitional rules apply to projects where implementation has already begun. These rules will allow work to continue without delay and avoid the need for a repeat assessment solely due to new requirements for electronic reports.

The deadline for the initial entry of data into the Price Database has been extended to 1 January 2027.

The Better Regulation Delivery Office (BRDO) is joining the efforts to support the launch of the State Price Database for Construction Products, implemented by Minrehion with the support of EU4Reconstruction. The EU4Reconstruction Project is funded by the European Union and co-funded and co-implemented by Denmark, Germany, France, and Lithuania.