Concepts of estimated cost and contract price different

11.05.2019

The Ministry of Construction of Russia plans to separate the concepts of estimated cost and contract prices, said Deputy Minister of Construction and Housing and Public Utilities Dmitry Volkov.

According to the deputy minister, the lack of a clear distinction between these terms in civil, urban planning and procurement legislation leads to problems in the relationship between the customer and the contractor and to claims from the control and law enforcement agencies.

“The Ministry of Construction offers a clear, unequivocal distinction between the cost at the stage of pricing – the estimated cost of construction from the cost at the stage of contract execution – the contract price of construction. At the same time, the contract value should be determined in an integrated manner, without reference to the specific cost of individual resources or the specifics of the technology”, said Dmitry Volkov.

The deputy minister added that at present it is proposed to do this in stages of work, and later on – at the price of a constructive solution.

Source: RIA News

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