The Ministry for Development of Communities and Territories of Ukraine is launching a large-scale reform of the pricing system in construction industry. The reform’s objective is to transition from the outdated regulatory model to the market-oriented digital format of construction work cost calculation.

The first step toward this goal was the Government’s decision that supported the initiative to introduce an electronic pricing system that will be part of the Single State Electronic System in Construction Sector. It is to unite all processed in one digital environment and ensure transparent and equal rules for all market players.

A special role in the reform will be played by the codification of building materials, which is a single digital “reference book” of all resources. Each material, from nails to concrete types, will be given a unique code that will allow eliminating confusion, mitigating manipulation risks, and enhancing the accuracy of cost estimates.

Also, an open database of prices is being formed that will become a pivotal tool to collect and analyze the market cost of building materials. The data will come from various sources like Prozorro system, customs and tax statistics, price lists of manufacturers, and market monitoring results.

Key accent of the reform is integrity, transparency, and equal rules of the game for both public and private contractors.

“We are transitioning to the digital analytical open system that forms fair rules for all market players. Clear price is a guarantee of trust, and trust is the foundation to attract international investment in Ukraine’s recovery,” said Nataliia Kozlovska, Deputy Minister of Development of Communities and Territories of Ukraine.

A separate section of the reform is updating the approaches to activities of consulting engineers to include clearly defined powers, responsibility, and guarantees of professional activity protection.

According to the Ministry, it is not about facelift alterations, but a fundamental change in the industry management philosophy that must create a transparent and predictable system for the market and international partners. This is what Ms. Kozlovska underlined at the meeting of leaders, members, and partners of the Interstate Consultants Engineers Guild.