President signs law on mandatory publication of prices for construction materials in public tenders

President Volodymyr Zelenskyy has signed Bill 11057 on the mandatory publication of estimates in public procurement, also known as the law on "transparent construction."

This is stated in the bill's card on the website of the Verkhovna Rada of Ukraine.

The law obliges construction customers to publish estimates with specific prices of the necessary materials on Prozorro within three business days from the date of signing a contract with the contractor or amending the contract.

It should be noted that investigative journalists regularly expose public procuring entities for selecting companies that buy construction materials at prices higher than in other regions or during similar procurements from other procuring entities.

For example, in late September, the Izmail Commercial Sea Port entered into an agreement with Odisei UA LLC for the purchase of road slabs. The overpayment under the contract may amount to more than UAH 10 million. The company planned to purchase 1,875 PZhU 16.12,3.1.4 slabs for UAH 4,591, 450 PZhU 16.6,15.1.4 slabs for UAH 2,864, 1,000 1P30.18-30 road slabs for UAH 10,881, and another 500 PAG-14 airfield slabs for UAH 23,164. The cost of the slabs was specified without VAT. So in reality, they were 22% more expensive.

In addition, the same slabs can be bought much cheaper on the market. For example, PZhU 16.6, 15.1, 4 slabs cost UAH 1, 881.60each, 1P30.18-30 road slabs cost UAH 9,732, and PAG-14 airfield slabs cost UAH 17,800. The only one where the price is not overpriced is for PZhU 16.12,3.1,4 slabs - their price is UAH 4,916.

In December 2023, the Nashi Hroshi publication, citing the Prozorro electronic procurement system, reported that the department for the maintenance of communal property of the Dachnenskyi village council of Odesa district, Odesa region, had concluded three agreements on the construction of water supply for UAH 29 million on November 8 and 15 following tenders. According to journalists, the overpayment for pipes under this agreement amounted to UAH 1.35-1.80 million, and for sand - UAH 1.98-2.31 million. That is, the total amount is UAH 3.33-4.1 million.

Кирило Бойко