May 16, 2024 10:18
Lyceum in Vinnytsia Region Gets Reconstructed at Inflated Prices
On April 24, the Department of Education, Culture, Tourism, Youth and Sports of Yaryshiv Village Council in Vinnytsia Oblast concluded an agreement with Podil Road Company LLC to reconstruct a local lyceum building. The cost of the work amounted to UAH 56.86 million.
Podil Road Company LLC was the only participant in the procurement transaction and offered a price that was 1.74% lower than the expected value.
By the end of 2025, the contractor will have increased the energy efficiency of the lyceum. This includes insulating the walls and furnishing the facades, partially repairing the roof, replacing all windows, repairing the porches, and arranging an autonomous heating system.
The final statement of resources indicates that a significant part of the funds falls on metal tiles 0.5 mm at 870.12 UAH/m2 (all prices are indicated with VAT). The Vasha Nadiina Pokrivlia (Your Reliable Roofing) company sells such tiles at 349 UAH/m2, and the Budstroi company sells them at 315 UAH/m2. The overpayment under this item can amount to UAH 1 million.
MB50 mastic was included in the estimate at 281,736 UAH/t, while Orange Bud sells it at 50,640 UAH/t, and Itera Group offers it at 59,640 UAH/t. Probable overpayment on the mastic amounts to UAH 500,000.
For such large objects, construction materials should be purchased in bulk. The cost should have been much lower than the price in a hardware store.
| Item name according to the resources sheet | Unit of measurement according to the resources sheet | Quantity according to the resources sheet | Selling price according to the resources sheet, including VAT |
Average market price | Potential overpayment |
| Frost-resistant bitumen-oil mastic MB50 | t | 2.227028 | 281,736.00 | 57,017.30 | 500,454.84 |
| Metal tiles 0.5 mm | m2 | 1,904.352 | 870.12 | 333.50 | 1,021,913.37 |
| Ceresit CT 54 Silicate Paint | l | 490.1277 | 564.06 | 268.93 | 113,542.98 |
| Adhesive compound Ceresit ST 190 | kg | 13,992.3 | 36.47 | 18.34 | 253,680.399 |
| Compound of polystyrene foam (for gluing and protection of
polystyrene slabs) Ceresit ST 85 |
kg | 5,858.1 | 22.68 | 16.81 | 34,387.047 |
| Self-leveling compound 3-15 mm Ceresit CN 69 | kg | 5,858.1 | 35.88 | 14.52 | 346,827.10 |
| Decorative plaster (crushed rock) Ceresit CT 137 | kg | 2468.745 | 76.13 | 45.16 | 76,452.10 |
Under these seven items, the overpayment might reach UAH 2.3 million. The price in the contracts is firm, so the procuring entity will not be able to simply adjust the cost of materials in service acceptance certificates.
Some of the most expensive and largest items are indicated without detailed characteristics, which makes it difficult to compare the price with the market price. Thermal insulation boards of the M75 brand were considered at 11,279.74 UAH/m3. For comparison, such boards are sold at 5,050 UAH/m3.
Mineral wool boards 200 mm thick were included in the estimate at 1,554.13 UAH/m2. In online stores, Izovat 30 insulant with a thickness of 200 mm is sold at 260 UAH/m2, and Lamisol Paz 120 insulant with a thickness of 200 mm is offered at 880 UAH/m2.
Podil Road Company LLC was established in 2018 in Vinnytsia. The founders of the company were Olena Kupetska and Anatolii Malanchuk. Since January 2022, the owners of the company have been Yurii Myronyshen and Dmytro Babenko.
Since 2021, the company has received contracts for more than UAH 479 million, including UAH 286 million this year.
This 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.
