Voznesensk re-awards contract for hub reconstruction with overpayments

The Mykolaiv Regional State Administration has awarded the contract for the reconstruction of a boiler house in Voznesensk for the second time to the same company that had previously had the tender canceled by auditors. Despite claims of possible price gouging, the company was awarded a contract for more than UAH 24 million without competition.

This was reported by Nashi Hroshi.

By the end of 2027, a multifunctional hub with a gallery, podcast studio, coworking space, and bakery is planned to be built on Sofiivska Street in Voznesensk. The work was commissioned by the Urban Development Department of Mykolaiv Regional State Administration, which signed an agreement with Budtechno Prime Construction Company LLC on May 11 for UAH 24.53 million.

This is the second attempt to hold this tender. The previous agreement was terminated after an audit by the State Audit Service. The auditors found that the company had included VAT in the cost of the work, although it was no longer a VAT payer at the time of submission of the documents. The company's VAT registration was canceled in June 2025.

In addition, the attention of the controlling authorities was drawn to the suspicious speed of the submission of documents: the company uploaded the tender offer only four minutes after the publication of the procurement. The department stated that it had nothing to do with such efficiency of the participant and explained it by "using the standard functionality of the system."

After the first tender was canceled, a new one was announced a few days later. This time, Budtechno Prime added an updated VAT payer's certificate and submitted the documents much later - two weeks after the start of the tender. However, the company again became the only bidder and the winner with the same contract amount.

Journalists and analysts noted that the prices for some of the construction materials in the estimate remained significantly higher than market prices. In particular, floor slabs were priced at more than UAH 31,000 per piece, although they can be found on the market for 25-45% cheaper. The situation is similar with aerated concrete blocks and concrete, which is why the possible overpayment for only three items could reach about UAH 400 thousand.

Separately, the estimate provided for an automatic bioclimatic pergola is UAH 1.25 million, but due to the lack of detailed characteristics, it is impossible to compare its cost with market analogues.

Budtechno Prime was registered in 2024 in Pervomaisk. It is owned by Narek Velitsyan, and this contract is currently the only major contract of the company.

Also in April, a contract to renovate boiler rooms at a lyceum in Voznesensk was awarded to an entrepreneur who was previously linked to alleged overpricing in public procurement. Despite this background, he was the only bidder and was awarded a new contract for public funds without competition.

Анна Бальчінос