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Vladimir Putin on price formation in construction

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Vladimir Putin on price formation in construction

The RF President, Vladimir Putin, has charged the Russian government with studying the issue of price formation in the sphere of construction of objects financed from the state budget and the execution of a price audit on them.

Taking the floor at the State Council on construction in the Kremlin, he stressed that there are a lot of acute and recurrent problems in the sphere of technical regulation and price formation in the construction industry. The problems have not been solved for years. The current cost standards database is obsolete, and there are no clear and justified data about expenditures either in design or in construction.

 

Such conditions allow for the making up of estimates on the basis of some practice, to put it frankly: off the top of one’s head. As a result, it is impossible to check the validity and efficiency of budget finance expenditure in the construction sphere.

The same situation can be seen in the sphere of technical regulation, which is lagging behind modern requirements and international standards.

So, it is necessary to legally introduce compulsory construction norms and standards, to create a state information system on price formation in the industry, to introduce technological and price auditing of construction investment justification, and to form an integrated complex of regulatory documents in the sphere of technical regulation.

 

The solution of these issues must be systematic and synergetic to achieve budget finance economies, an improvement of the business climate and competition development, a transparency increase at all stages of objects construction, and a decrease in levels of corruption.

 

The RF President also appealed for supervisory bodies to stop the practice of amending the requirements for ready-for-construction objects and to give new regulations and requirements to investors.

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