The restoration of social infrastructure facilities has now begun in Ukraine, in particular in the de-occupied areas and frontline regions and districts (within 50 km of the combat zone)
During the year and a half of the war in Ukraine, foreign funds, international financial companies, and groups gradually began to finance social infrastructure facilities.
What do our local governments, communities, and contractors involved in the restoration of these facilities need to understand?
Unfortunately, abuses occur at every step. For example, when talking to representatives of donor organizations, many of whom are dissatisfied with the work of local government representatives and contracting organizations, who abuse the pricing of reconstruction, inflating prices for design work, the purchase of equipment, building materials, etc.
Everyone should first of all consider that those organizations that support Ukraine and finance reconstruction must report to their states, and those, in turn, to the European Parliament.
What is really happening in the fields of Ukrainian recovery?
And there is lobbying by construction companies, which are trying to overestimate the design work by a large percentage. Everyone should understand that there are clear rates on the market for all items regarding the collection of initial data, survey, design work, etc. For example, the design of a major overhaul should be no more than 3 – 3.2%, depending on the complexity of the object, from section 1.9 of the general consolidated estimate, and reconstruction is about 4.2%. New construction of the object – no more than 5.3%.
What do the contractors do?
If the financing of the restoration facility comes from a foreign organization or fund, our businessmen in the design or construction market, knowing international prices in the field of design, try to “add” 10, and sometimes 15% of the real cost of the facility on all these items, exceeding the indicators by two or even three times the norm.
After such a project, construction work continues. Understanding that the funding is not from the state budget and is not municipal funds, but from other sources, they also try to abuse it here, indicating inflated costs per square meter, either for restoration or repair. For example, they indicate 100 or 120 thousand UAH per square meter. Although the real amount for major repairs according to the state price is 25-27 thousand UAH. If this is the construction of a new outpatient clinic, then the maximum cost will be equal to 37 thousand UAH per square meter. We can separately discuss the positions on its equipment. But I am naming the figures that are maximum.
“And the money turns out to be wasted, and even during the war…”
Therefore, it is necessary to prepare documentation, undergo an accredited examination, obtain a positive expert opinion on prices that are actually equivalent to state prices, and only then proceed to restore such facilities.
The provocations made by both customers, balance sheet holders of the facilities, and “unclean” performers of the works do maximum damage to the image of Ukraine. So sooner or later, law enforcement agencies will definitely come after them. And it’s even more unfortunate when the restoration facilities themselves suffer because of such businessmen, which could be much higher quality and more modern. Instead, in a year they will crumble and collapse. And the money turns out to be spent in vain, and even during the war. And most importantly – how will our partners from the European Union look at us then?!
Viktor Leshchynsky, President of the National Expert Construction Alliance of Ukraine
