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PROPOSALS OF UNITE ARE TAKEN INTO ACCOUNT IN THE NEW EVALUATION STANDARDS

On 08 November 2021, new cost estimating standards came into force, among which are the Guidelines for determining the cost of construction. The Guidelines change the approaches to the pricing of construction works, including road works. Some of the innovations are designated as revolutionary ones. 

Thus, the document provides an opportunity for a participant in the procurement procedure to make a bid price using the aggregate work cost indicator (ACI). That is, to give the price for each type of work as a single figure, taking into account the majority of costs. In particular, using the ACI, there will be no need to separately identify the costs of labor and material and technical resources, general and administrative costs, and profits. At the same time under the Association’s considered proposal, it is specified that the profit included in the ACI is not an estimate. That is, it can be calculated according to the contractor’s own methods and not only on the basis of estimated labor intensity (man-hours). 

In addition, at the request of the Association the Guidelines were amended to clarify the exclusions from the calculations for the work performed at a fixed contractual price with the ACI. It is envisaged that in this case, paragraphs 6.4-6.15 of the Guidelines do not apply. In particular, there is no need to separately calculate and justify the cost of materials by the Budget Code of Ukraine, specify the cost of seasonal work, justify travel expenses, provide supporting calculations of justified costs for the purchase of equipment, furniture, supplies, etc.

However, the most significant addition of the Association to the Guidelines is that, at the decision of the customer, the statement of work volumes provided to contractors to calculate the bid price can be compiled according to the international system of measurement. This small norm is a big step towards the application of CESMM4 in public contracts, an internationally accepted measurement system, which has been successfully used for several years in Ukraine on IFI. We expect the creation of new practices with the new regulation and encourage customers to take advantage of the new opportunities.

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