These cases are the result of DOZORRO’s systematic work in previous months, when we analyzed procurements and approached contracting authorities with comments on inflated prices. In January, we recorded that some of these inquiries delivered practical results: the parties revised and reduced contract amounts.

Major overhaul of a water pipeline in Kherson: contract value reduced by UAH 1.2 million

In Kherson, at the end of June last year, a decision was made to carry out a major overhaul of the water pipeline from Ivana Bohuna Street to Water Supply Pumping Station No. 3. Kherson City Municipal Utility Production Department of Water Supply and Sewerage announced a procurement to replace a worn-out section of the network on which the stable water supply of part of the city depends.

A UAH 14.1 million contract was signed with Avto-M LLC, which offered a price UAH 590,000 below the estimated value. A bid that was UAH 5.7 million cheaper was rejected because Teren LLC failed to provide substantiation for an abnormally low price within the required deadline.

Under the contract with Avto-M LLC, almost UAH 9.5 million was allocated to materials. DOZORRO analysts reviewed the estimate and identified a likely overpayment of around UAH 1 million. Nearly half of that amount came from inflated prices for polyethylene pipes for cold water supply (100 SDR-17 (1.0 MPa), outer diameter 200×11.9 mm). The winning bidder planned to supply them at UAH 1,151.52 per running meter (here and below, prices include VAT). Market prices, however, were significantly lower: TrubPolimerGroup sells such pipes at UAH 633.34/m, Megapipe at UAH 633/m, and Asso at UAH 699/m.

At the end of August 2025, DOZORRO asked the contracting authority to review material prices and avoid overpayments. This could only be done by signing an additional agreement, as the contract price was fixed. 

We never received a reply to our request. At the same time, Kherson’s Production Department of Water Supply and Sewerage and Avto-M LLC reduced the contract value by UAH 1.2 million through price adjustments.

Avto-M LLC was established back in 2001. Since 2016, the company has won nearly UAH 1.2 billion in contracts through Prozorro. Media outlets have reported that Avto-M previously appeared in criminal proceedings concerning alleged embezzlement of budget funds. According to the investigation, in 2019–2021, Dniprovodokanal utility signed eight contracts with the company worth over UAH 40 million, and law enforcement checked for possible collusion between the contractor and officials.

Major overhaul scheme. Source: Dream

Shelter for a school in Kyiv: UAH 14.8 million cut from the contract

The Education and Innovation Development Department of the Pecherskyi District State Administration signed a UAH 207.1 million contract for the construction of a radiation shelter for Ivan Kudria Specialized School No. 181. Under the contract, Integral Bud-Standart LLC is to build a separate underground shelter for 800 people on the school grounds at 22-a John McCain Street. The winner of the special open tender was the only bidder.

The project includes not only construction of the shelter itself, but also demolition of the stadium and sports ground beneath which it is to be built, and installation of new facilities.

While analyzing the estimate, DOZORRO analysts identified a likely overpayment of UAH 16.1 million, including inflated prices for construction materials. The Education and Innovation Development Department could have overpaid nearly UAH 3 million for C20/25 W6 concrete alone, and almost UAH 2 million for SBR rubber granulate (2–3 mm). Integral Bud-Standart LLC inflated the granulate price by more than 12 times: the contractor planned to supply it at UAH 250/kg, while Masterfibre sells such granulate at UAH 13/kg and Markho Group at UAH 19/kg. 

Ivan Kudria Specialized School No. 181. Source: school website

In October 2025, we asked the contracting authority to review material resource prices and adjust the contract price. In its response, the Education Department stated that online monitoring of construction material prices does not reflect the overall market situation, and that determining average market prices falls within the competence of the Ukrainian Chamber of Commerce and Industry. However, the Pecherskyi District Education and Innovation Development Department said that all necessary measures would be taken.

The State Audit Service took note of this procurement. Auditors identified several violations, including inconsistencies between the winning bid and tender documentation requirements that should have led to rejection of the bid. In addition, specialists from the State Audit Service found issues in the executed contract.  The Education and Innovation Development Department remedied the violations identified.

An additional agreement was later published on Prozorro. As a result, the construction cost of the shelter was reduced by UAH 14.8 million, which helped prevent inefficient use of budget funds during project implementation.

Integral Bud-Standart LLC was established in Bucha in 2017. Since then, the company has won over UAH 1.5 billion in state contracts. 

Treatment facilities in Kharkiv: UAH 2.8 million in prevented overpayment

Kharkivvodokanal utility launched a reconstruction of wastewater treatment facilities and a sludge treatment line at Municipal Wastewater Treatment Plant No. 2, located on Haharina Avenue. 

The procurement was conducted through a special open tender. Two bidders took part: Stalkonstruktsiia LTD and Stroitransavto LLC. Initially, the contracting authority rejected Stroitransavto’s bid in favor of Stalkonstruktsiia LTD. 

Stroitransavto challenged this decision before the Antimonopoly Committee of Ukraine, and the AMCU sided with the company.

As a result, the UAH 48.1 million contract was eventually signed with Stroitransavto LLC. However, we identified a likely overpayment of approximately UAH 2.4 million. The largest inflation concerned waterproof plywood (21 mm, 3 m × 1.5 m, FSF grade). The estimate set the material price at UAH 10,920.00 per sq m, while average market prices were around four times lower. For example, Svit Parketu sells similar plywood at UAH 1,560/sq m, and Plyttorhservice at UAH 2,202/sq m. On this material alone, Kharkivvodokanal could have overpaid nearly UAH 1.2 million.

In early November 2025, DOZORRO asked the contracting authority to review material prices in the estimate. This was feasible because the contract price was dynamic. In its response, Kharkivvodokanal explained that the estimated value had been based on a positive expert report. We have previously explained that expert review checks the overall reasonableness of the project, but does not analyze market prices for specific construction materials. The contracting authority thanked us for our comments and said it would adjust the contract price.

The State Audit Service also monitored this procurement. In particular, auditors raised questions about the substantiation of the estimated value and the execution of contract annexes. In response, the contracting authority explained that part of the expenses had been included in material prices, and later the contract price was adjusted by an additional agreement by UAH 2.8 million.

Stroitransavto LLC was registered in Kharkiv in 2003. From 2017 onward, the company began participating in Prozorro procurements and has won contracts totaling nearly UAH 116 million.

This material was prepared within the framework of the “Digitalization for Growth, Integrity, and Transparency” (UK DIGIT) project, implemented by the Eurasia Foundation and funded by UK Dev.

The material was produced with the financial support of the UK Government’s International Development Assistance Programme. The contents of this material are the sole responsibility of Transparency International Ukraine; the views expressed do not necessarily reflect the official policy of the Government of the United Kingdom.