Risks of inflated prices for construction materials: ESBU analysts focus on a shelter project

 Analysts of the TO of the ESBU in the Kyiv region, during the monitoring of a procurement related to the construction of an anti-radiation shelter for one of the lyceums in the Chernihiv region, established risks of possible overstatement of the cost of building materials. The procurement process falls within the purview of ESBU analysts.

It concerns an infrastructure project financed from the local budget, aimed at creating safe conditions for students and employees of the educational institution to stay in the shelter.

Based on the results of the public procurement procedure, a winner was determined, and a contract was concluded for the execution of construction works with a total value of over UAH 24 million.

ESBU specialists processed the design and estimate documentation and compared the cost of building materials stipulated by the contract with average market prices. The analysis revealed significant discrepancies for specific items.

Furthermore, while checking information in open state registers, it was established that the contracting company appears in several criminal proceedings, which creates additional risks during the project's implementation.

To prevent the ineffective use of budget funds, the ESBU provided the customer with recommendations to strengthen control over the execution of the contract, review the estimate, and evaluate the expediency of further cooperation on the defined terms.

Based on the results of processing the recommendations, the customer reviewed the estimate documentation and reduced the volume of planned expenditures by more than UAH 1.3 million.

The procurement is under further control of the ESBU and will be monitored by the Bureau's analysts. In case violations are established, the Bureau will take appropriate measures in response.