State enterprise «National Institute for Development Infrastructure»
en UA

PRICING REFORM IN HIGHWAY CONSTRUCTION

On April 12–14, 2023, the team of the State Enterprise “DerzhdorNDI” conducted a three-day scientific and practical seminar titled “PRICING REFORM IN HIGHWAY CONSTRUCTION: INNOVATIONS, METHODOLOGICAL ASPECTS AND PRACTICAL CASES,” which was held both online and in person in Ivano-Frankivsk.

 
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In a group of more than 200 cost estimation specialists, methodological approaches to determining the cost of construction of critical infrastructure facilities were discussed, along with issues arising from the application of public procurement legislation and the Rules and Methodology for determining the cost of road works and services, as well as the specifics of applying the international CESMM measurement system.

During a dedicated session, proposals and ideas for the Rules and Methodology for determining the cost of road works and services were also discussed. During the seminar, the idea emerged to conduct a survey among all key stakeholders regarding the proposals and ideas to the Rules and Methodology that were voiced during the event.

The following proposals received almost unanimous support from participants:

– Approve a National Classification of road works and services;
– Allow the use of existing unit cost norms (RCCN) if relevant standard cost rates are not available;
– Clearly define in the Methodology provisions regarding compensation of additional costs related to inflationary processes exclusively for material resources used in the reporting period;
– Introduce requirements in the Methodology for preparing a list of key material resources used in calculating inflation-related compensation (including specifying the minimum share of the material and the price excluding transport costs);
– Exclude transport costs from prices included in the price database and calculate transportation expenses at the stage of preparing investor cost documentation based on freight rate indicators;
– Compensate administrative costs and profit for additional works and services covered by risk allowances.

We sincerely thank all seminar participants for their active engagement and perseverance. Together, we are working to improve the regulatory framework for the further reconstruction of infrastructure.

 

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