The Russian government has allowed public procurement in the construction industry through an open tendering procedure. The e-auction format will no longer be mandatory for purchases of goods and services to meet state and municipal needs in the construction sector starting September 1, 2020. The decree was signed on June 25 by Prime Minister Mikhail Mishustin.
The requirements for those participating in such purchases will be more strict. The contractor will be required to have relevant experience of at least five years (three as of today). A differentiated cost threshold is introduced. The value of each contract the contractors provide as evidence of their experience should be at least RUB 10 million for federal projects and at least RUB 5 million for regional and municipal projects. Demolition and overhaul contracts are not valid for experience confirmation.
The changes made by the government to the public procurement procedure in the construction sector are aimed at attracting the most experienced and competent contractors to work on government contracts, as per the explanatory note to the decree.
In April, the Russian government adopted a series of regulations aimed at supporting the construction sector. The funding for support measures has been previously approved in the amount of 350.6 billion rubles.
