MPs Want to Allow Price Increases in Contracts for Construction and Current Repairs

MPs propose to allow the increase in prices of the concluded contracts for the procurement of construction works and current repairs if expert organizations confirm their growth.

This will allow unfreezing some construction projects. But at the same time, it carries significant corruption risks:

• A new corruption scheme will become possible, which will practically destroy competition in procurement of construction works and current repairs. Procuring entities will be able to announce procurement with a lower expected value. It will be attended by the only favorite participant. A contract will be signed with them. And in six months, they will increase the value of the contract based on an expert opinion. And only then will the contractor get down to work.
• The cost of construction can be increased without restrictions. After all, the draft law does not provide for them.
• The provision can be applied to a contract concluded in any period.
• The combination of permission to increase the price of the contract with the weakening of the requirements for the use of Prozorro and the disclosure of information will complicate the control of such procurement transactions.

“Rapid inflation during the war really makes it difficult to implement construction projects. The initiative of MPs is trying to solve this problem. However, the draft law needs to be finalized. We need safeguards that will not allow officials to abuse new opportunities,” explains Ivan Lakhtionov, TI Ukraine’s Deputy Executive Director for Innovation Projects.

Transparency International Ukraine calls for the revision of the draft law in accordance with the recommendations before the first reading.