ANALYSIS OF PUBLIC PROCUREMENT FOR BUILDING CONTRACTS

Abstract

Rapidly rising prices of construction materials and machinery in the construction market are also pushing up the cost of construction service. The main problem is that construction investment projects have been prepared and contracts between Contractors and Customers have been concluded at previous price and it is therefore necessary to look for opportunities to index the price of the construction contracts. The aim of the study is to analyse the procurement documents for construction contracts published on the Central Public Procurement Portal between 2019 and 2021. The analysis focuses on the pricing selection and price conversion options for public procurement documents for construction contract works. The economic and global geopolitical situation in the construction sector is reviewed. The critical situation in the construction sector due to the drastic increase in the cost of construction materials creates a risk that some contractors may not be able to complete their works in accordance with the signed construction contract. The essence of the article is to propose to the contracting authorities, following an analysis of the procurement documents for construction contracts, solutions to the problem by adding conditions to the procurement documents which will help to minimise the possibility of disputes between the contractors and the client.