In the midst of Ukraine’s transitional economy and ongoing military challenges, a pressing need has emerged to revamp the approach to determining the cost of project works in the road sector. Artem Bezuglyi, a researcher from the State Enterprise «National Institute for Development Infrastructure» (SE «NIDI») in Kyiv, has delved into this complex issue, publishing his findings in the journal ‘Дороги і мости’, which translates to ‘Roads and Bridges’.
Bezuglyi’s research underscores the importance of a robust pricing policy, which he describes as a “key part of achieving the strategic goals of enterprises.” He argues that a well-structured pricing policy influences the development of project enterprises, creates a favorable market environment, and facilitates strategic planning. “Establishing a sound pricing policy involves research and gathering information about the market for road works and services, analyzing economic factors, and preparing projects to meet market needs and optimize their implementation,” Bezuglyi explains.
The current process of forming a contract price is labor-intensive and fraught with corruption risks, according to Bezuglyi. He highlights the need to review the existing pricing system, particularly regarding the determination of project work costs for road works and services. His study aims to analyze the current base of normative documents used to determine the cost of project works in Ukraine, study international experience in determining the cost of design work, and provide recommendations for improving the current pricing system.
Bezuglyi’s research builds upon the works of scholars such as Günter Löhnert, K. A. Schreibe, S.-Yu. V. Marciukaitis, M. A. Karpovich, and M. A. Simakova, who have explored various pricing methods used in determining project costs. By systematizing analytical data and developing theoretical foundations, Bezuglyi seeks to create the most favorable pricing conditions for all participants in the investment process.
The implications of this research extend beyond Ukraine’s borders, offering valuable insights for the global road sector. As countries worldwide grapple with the need to modernize their infrastructure, the findings from this study could shape future developments in the field. By improving the regulatory framework and enhancing the legal regulation of the road sector, Bezuglyi’s research could contribute to the development of the road sector and, ultimately, the recovery of Ukraine.
In an industry where every penny counts, this research could have significant commercial impacts. By optimizing the determination of project work costs, road projects could become more efficient and cost-effective, benefiting all stakeholders involved. As the road sector continues to evolve, the insights gained from this study could prove invaluable in navigating the complexities of project pricing and ensuring the successful implementation of road works and services.