Construction Products Price Database Is Being Launched

Ukraine is introducing a new tool to support transparent reconstruction — the Construction Products Price Database: https://e-construction.gov.ua/bdcb

What is the Price Database? How will it be populated? How is the average price calculated? When will it become operational? How can manufacturers and suppliers use it? Read on to learn more.

What is the Price Database?

The Price Database is a component of the Unified State Electronic System in the Construction Sector (e-Construction). It provides a pricing benchmark for cost estimates used in reconstruction projects financed with public or donor funds.

The system compares only equivalent products — those with the same code in the Construction Products Codifier (see below) and identical technical characteristics. For example, concrete with different performance parameters or cement of different grades are not compared within the same group.

Price analysis has existed before. The new rules simply standardize the methodology for conducting price analysis, validating price sources, and generating electronic reports.

How will the database be populated?

The database will receive information from several sources, including:

• – manufacturers and suppliers;
• – contracting authorities and contractors when preparing price analysis reports;
• – importers and distributors;
• – Prozorro Market;
• – the State Tax Service and the State Customs Service.

How is the average price calculated?

Manufacturers submit information on a specific product, including its product code, technical characteristics, price, and delivery terms.

The system groups offers with the same product code and identical characteristics within the region where the project is being implemented and calculates a price range for that group.

The calculation is based on the total cost of supplying the product to the project, including transportation costs. As a result, a lower-priced product with higher logistics costs may have a higher final price than a more expensive product with lower delivery costs.

If a submitted price falls significantly outside the established price range, the system will flag it as an outlier.

Therefore, up-to-date information provided by manufacturers directly influences the market benchmark. If a company does not submit its pricing data, the average price will be calculated without taking into account that company’s products, production costs, logistics, and delivery conditions.

Why is this the responsibility of every manufacturer?

The market reflected in the Price Database will only be as representative as the data submitted by its participants.

If a manufacturer does not provide its pricing information, it effectively does not participate in the formation of the average market price. This may have practical consequences.

The system will rely on the information available in the database. If the available data are limited or represent only part of the market, the calculated average price may not accurately reflect actual market conditions for all manufacturers.

Photo source: freepik.com