Chamber of Accounts announces failure of Putin-initiated construction reform

Chamber of Accounts announces failure of Putin-initiated construction reform

In three years, the transition to new pricing has not been made.

Construction reform, which included the transition to new pricing, has not yielded results in three years. The is the conclusion reached by the Chamber of Accounts, RBC reports.

According to estimates of the Chamber, during this time, almost 2 billion rubles ($30.2 million) were spent on the initiative, with 1.4 billion rubles ($21.4 million) allocated from the budget. However, “despite the long time period and a significant amount of money spent,” the changes did not bring the expected results. In particular, the transition to a new pricing model could not be implemented, according to the conclusion of the Chamber of Accounts. 

The auditors note that the new system for determining the estimated cost of construction is still at the development stage, and the reform cannot be carried out without it. It is noted that the Ministry of Construction works “unsystematically” with estimated standards, and there is no roadmap of the reform. 

To recall, in 2015, President Vladimir Putin took the initiative to conduct a pricing reform. He proposed to switch to the “resource” method of estimated calculations, that is, taking into account the current prices for building materials, labor, and so on. 

It was assumed that this would allow to more accurately determine the estimated cost of facilities and reduce the risk of its overestimation. For now, intermediate indexes multiplied by 2001 prices are used in Russia.

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