MIU Gaining Control of Prices on Road Works

3 Фев

According to the Law passed by Verhovna Rada (the parliament) of Ukraine, the works on motorways’ construction and repairs should be excluded from the existing estimate norms and price-creating normatives in the construction sector.

The parliament of Ukraine has transferred the authority on normative provision of the motor roads construction, repairs and maintenance from Ministry for Communities and Territories Development of Ukraine (Minregion) to Ministry of Infrastructure of Ukraine (MIU).

This decision was passed by 245 MPs voting for the Draft Law No. 2234 at the parliament’s plenary session.

According to the Draft’s explanatory note, the existing nowadays system of pricing in the construction is obsolete and too formalised basing on the resource-based techniques. These techniques concern the necessity of grounding every component of road works expenditures (indicating a machine’s make, number of workers, their wages’ rates, profits, etc.) by way of elaborating a number of paper documents.

“Such a laborious process of the contractual price formation limits the contractors’ access to our construction market. Moreover, the problem is aggravated by the facts that there is no concern by our road constructing companies in applying innovation materials and technologies and reducing expenses, there is pressure on them from inspecting authorities due to the errors arising from too formalised system”, the document says.

This draft law is going to separate the works on the motor roads of common use repairs and construction from the norms and standards on estimates in force in the construction.

Instead of it, the draft envisages stipulating that the cost of new roads construction, reconstruction, repairs and maintenance of existing roads of common use should be defined by techniques and regulations approved by MIU.

“While the secondary legislation is being developed under this new draft law, Ukravtodor (Ukrainian Motor Roads Agency) is in a close contact with Minregion as regards the utilisation of already existing state standards, with the reformed system of reporting and works registration. They are those Ukravtodor employs for the projects of international financial institutions”, commented the state road agency upon the said draft law adoption.