Prices for construction materials continue to rise in Russia

In August 2021 Deputy Prime Minister Marat Khusnullin discussed with the heads of regions new government measures to tackle the problem arising from the rising cost of public construction contracts. It was decided to establish a calculation procedure for contracts up to RUB 30 million, which would allow to determine the difference in the cost of construction materials and equipment, taken into account in the formation of the initial contract price (maximum starting price of the contract) on the basis of estimates that received a positive conclusion of the expert examination, and their cost on the date of the calculation with a high degree of reliability.

For contracts worth between RUB 30 million and 100 million, calculations will be made using the coefficient of price adjustment calculated on the basis of construction costs using quarterly consolidated indices of changes in estimated costs announced by the Ministry of Construction of Russia. Calculations for contracts worth 100 million rubles and more, which are carried out in the same way as for contracts worth from 30 to 100 million rubles, are subject to mandatory verification of the estimated cost by the state expert review authorities.

At the meeting Marat Khusnullin said that the commissioning of housing in the country is 30,9 % ahead of the last year's figures, and is 43,943 million m² on August 1. He also noted a high issuance rate of new permits for the construction of apartment buildings in the first half of the year, which amounted to 3.2 thousand for a total living space of 22.6 million m², which is almost 10 million m² more than in 2020.