June 11, 2024 16:37
Insulation Prices in Dnipro Decrease by almost UAH 64 mln after DOZORRO’s Appeal
On April 1-8, the Department of Housing of Dnipro City Council concluded 13 contracts totaling more than UAH 425 million with Starbudcontract LLC for major repairs of residential buildings. DOZORRO specialists found a potential overpricing in these contracts regarding some items of construction materials and informed the procuring entity and the city council about them.
The procuring entity answered that it had processed the information and had even asked the contractor to clarify the current average market prices for construction materials, in which DOZORRO experts suspect overpricing. The contractor informed that as of mid-April, the average market prices for plaster and basalt insulation were indeed the same as estimated by the project experts.
The procuring entity also informed that considering the above, after the works would be performed and certificates signed, the cost of contracts would be reduced by concluding additional agreements. In mid-May, the procuring entity and the contractor fulfilled their promise: they concluded additional agreements and reduced the cost of contracts.
When analyzing, DOZORRO specialists checked prices only for resource-forming construction materials. According to their calculations, the potential overpayment for these materials could be UAH 39 million. However, in addition to these prices, the procuring entity and the contractor reviewed the prices for other items. Therefore, the total amount of reduction reached UAH 63.7 million.
“It’s great that the procuring entity and the contractor analyzed the prices for other items and reduced the value. The price is dynamic, so we need to monitor what it will be like in the certificates,” states Yaroslav Pylypenko, public procurement monitoring specialist of the DOZORRO project (TI Ukraine).
| Work performance address | Amount of the contract | Revised amount of the contract, UAH | Reduction amount, UAH |
| 88 Slobozhanskyi Avenue | 18,078,556.20 | 16,228,284.00 | 1,850,272.20 |
| 108 Slobozhanskyi Avenue | 40,251,634.24 | 35,267,822.00 | 4,983,812.24 |
| 119 Bohdana Khmelnytskoho Avenue | 39,225,033.97 | 30,444,034.00 | 8,780,999.97 |
| 113 Bohdana Khmelnytskoho Avenue | 69,388,780.50 | 54,605,049.00 | 14,783,731.50 |
| 6 Inzhenerna Street | 21,947,596.37 | 19,159,975.00 | 2,787,621.37 |
| 2 Inzhenerna Street | 26,520,001.50 | 23,444,785.00 | 3,075,216.50 |
| 4 Inzhenerna Street | 47,394,203.11 | 41,268,909.00 | 6,125,294.11 |
| 105 (A-5) Slobozhanskyi Avenue | 21,647,553.83 | 17,281,520.00 | 4,366,033.83 |
| 4a Inzhenerna Street | 20,825,922.71 | 18,126,678.00 | 2,699,244.71 |
| 70 Slobozhanskyi Avenue | 24,725,913.54 | 21,586,185.00 | 3,139,728.54 |
| 106 (A-9) Slobozhanskyi Avenue | 39,926,364.40 | 39,926,364.40 | 4,895,109.40 |
| 8 Inzhenerna Street | 26,958,060.18 | 24,181,258.00 | 2,776,802.18 |
| 72 Petra Kalnyshevskoho Avenue | 28,564,708.37 | 25 081 823,00 | 3,482,885.37 |
| 425,454,328.92 | 361,707,577.00 | 63,746,751.92 |
Procurement monitoring was carried out with the support of the USAID/UK aid project “Transparency and Accountability in Public Administration and Services / TAPAS”.
Publication was prepared with the financial support of the European Union. Its content is the sole responsibility of Transparency International Ukraine and does not necessarily reflect the views of the European Union.
