Direct advance payments threatened: the exchange mechanism as a new reality for construction materials in the public sector
On January 1, 2026, Federal Law No. 431-FZ came into effect, changing the procedure for receiving advance payments under government construction contracts. In order to pay the suppliers directly in advance, the materials from the Ministry of Construction's list must now be purchased through accredited exchanges and electronic platforms included in the Federal State Information System for Pricing in Construction (FSIS PC). This article examines key legislative changes, the advantages of the exchange mechanism (access to nationwide demand, objective pricing, cost reduction), and the risks of ignoring the new requirements. A step-by-step action plan is provided for contractors and subcontractors to maintain the direct advance payment procedure and avoid claims from regulatory authorities.
| Author: D. Zolotov |
| Section: Production and market |
| Keywords: advance payment, government contracts, exchange trading, FGIS CS, construction materials, treasury support, pricing transparency |

