Ministry for Communities and Territories Development, communities and regional military administrations sign memorandum on implementing new rules for calculating the cost of reconstruction works

More than 500 communities and regional military administrations have joined a joint Memorandum on the implementation of new rules for calculating the cost of works during reconstruction.

As emphasised by Oleksii Kuleba, Deputy Prime Minister for Restoration of Ukraine and Minister for Communities and Territories Development, this is an important step for the entire reconstruction system.

“This Memorandum is about mutual responsibility, cooperation, and joint work on reconstruction. It enshrines readiness to work according to transparent rules, adhering to integrity, openness, and accountability. The document establishes mechanisms for coordination, information exchange, and broader involvement of participants in the implementation of projects that restore housing, social infrastructure, energy facilities, water supply, and other critically important systems,” said Oleksii Kuleba.

The Memorandum is open to all those implementing reconstruction projects and will serve as the basis for further expanding joint efforts.

As a reminder, the Government recently adopted a resolution establishing uniform, predictable, and transparent rules for determining the cost of construction works for all projects funded by the state budget and donors. The Ministry’s team developed the document in collaboration with the relevant Working Group, anti-corruption organisations, and international partners.

Previously, approaches to determining costs could differ significantly even for identical works. The new rules create a level playing field in which clients and contractors operate according to the same logic. They are based on up-to-date data, a unified approach, and clear expenditure standards. The cost of materials is formed on the basis of real market offers, and once the state price database is launched, it will be guided by average values automatically submitted to the Unified State Electronic System for Construction. This ensures justified estimates that are understandable and predictable for everyone involved in reconstruction, as well as for donors.

Standard costs have been separately regulated: overheads must not exceed 10% of direct costs, administrative costs – no more than 3%, and contractor profit – up to 15%.

Importantly, reconstruction projects have established minimum wages in line with the Sectoral Agreement, while works in combat zones include coefficients that increase pay. This approach protects workers and ensures fair working conditions.

All materials used in construction receive a unified code through the Construction Products Classifier. This enables the formation of a correct range of market prices and ensures that all market participants have the same understanding of each item.