Ukraine adopts international pricing standards

Despite the ongoing war, the country is moving ahead with contractual reforms for road works in line with western European norms, according to UNITE, the Ukrainian Infrastructure Association, a non-government agency.
Highway & Network Management / December 14, 2022 1 minute Read
By David Arminas
The changes will help the recovery of road infrastructure in the Ukraine, according to UNITE, the Ukrainian Infrastructure Association (image © Larysa Shcherbyna/Dreamstime)

Ukraine’s ministry of infrastructure has approved methodology for determining the cost of road works that should lead to more transparency and less risk for participants.

The reforms, which came into force on October 17, include the use of exclusively fixed prices, international measurement methods (primarily CESMM), prices of materials from transparent databases, bills of quantities (BOQ) and prices from databases of analogous objects.

CESMM, the Civil Engineering Standard Method of Measurement - commonly known as CESMM3 - sets out a procedure for the preparation of a bill of quantities for civil engineering works, for pricing and for expression and measurement of quantities of work.

In November 2021, a law was adopted that gave the ministry the authority to reform the pricing system in road construction. UNITE, the Ukrainian Infrastructure Association, has welcomed the government’s efforts over the past year. “The ministry of infrastructure of Ukraine has implemented a comprehensive reform whose time has come,” said Ihor Samokhodskyi, executive director of UNITE.

“The changes will benefit the effective recovery of road infrastructure in Ukraine. Pricing for road reconstruction will meet international standards, which is reasonable for donors and international players. Society will benefit from greater transparency and reduced corruption risks. This reform can become an example for other areas of construction for public funds,” he said.

According to the new Methodology, Ukrainian clients will use international methods of work measurement, primarily CESMM. The tender will be submitted with the bill of quantities (BOQ) prepared according to CESMM or the Ukrainian analogue of CESMM.

This should lead to easy comparison of prices between facilities, increased competition, as well as reduction of corruption risks in the bidding process and acceptance of completed works.

The methodology provides for the exclusive use of fixed prices. When signing the contract, the price is fixed with a clearly defined cost of works measured according to the international or Ukrainian method. Each work is evaluated by an aggregate cost indicator. This reduces the risk of manipulation with prices after signing the contract.

UNITE is a non-governmental organisation established in 2021 that creates and implements the best solutions for the development of Ukraine’s infrastructure. For more information, visit the website of UNITE.

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