Cabinet of Ministers settles pricing in construction during the war: new rules to analyze prices, wages and profits

November 25, 2025

The Cabinet of Ministers of Ukraine passed Decree No. 1512 of November 19, 2025 that legislates specifics of determining the construction cost during the martial law and state of emergency.

The document introduces new rules of price formation for building work, materials and wages in construction, reconstruction, rehabilitation, and renovation of buildings and roads financed by budgetary funds and funds of state-run and communal companies.

Key innovations from the decree:

  • Before the state price database is launched, the client or contractor is obliged to analyze the market by at least three price offers for basic materials (which make 60% of the cost). For the remaining 40% they may use open sources.
  • After the price database is launched, the material cost cannot exceed average values recorded in the state system.
  • Limits of expenses are stipulated as follows:
    • general — up to 10%;
    • administrative — up to 3%;
    • estimate profit — up to 15%.
  • The issue of builders’ wages is settled so that they cannot be lower than guaranteed by the sectoral agreement.
  • For works in dangerous areas, multiplying factors will apply:
    • 2,0 — in areas with ongoing hostilities
    • 1,5 — in areas of possible hostilities.

In addition, in a month, the Ministry of Infrastructure has to develop the Codification of Construction Products, and within four months, the electronic system in construction sector will be upgrades to launch the state price database.

The decree takes effect from the day of publishing and will act throughout the martial law period and another 12 months after it is cancelled.

ICEG

Interstate Consultants Engineers Guild

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