The Law No. 44-FZ proposes to introduce a new basis for changing the essential conditions of the contract price

30 March 2021, Tuesday

The relevant proposals to support the construction industry in the context of changes in prices for construction resources were announced by the Ministry of Construction of Russia on its website. According to the initiative, the proposed amendments to Federal Law No. 44-FZ of April 5, 2013 "On the contract system in the field of procurement of goods, works, and services for State and Municipal needs" will affect state contracts, the subject of which is the performance of works on construction, reconstruction, major repairs, demolition of a capital construction object, and work on the preservation of cultural heritage objects.
 
It is planned to establish a new basis for changing the essential terms of the contract price, which will allow the customer to change the price of contracts concluded for a period of at least one year, without the need to enter into a new contract. Such grounds may include cases when, during the execution of the contract, there was a significant change in the value of one or more items of price-forming construction resources, which led to a change in the total cost of work performed by more than 5%, and the execution of this contract is impossible without changing its terms due to circumstances beyond the control of the parties.
It is noted that the proposed measure will support the construction industry in changing economic conditions and neutralize the consequences, including in the form of higher prices for construction products. Moreover, the bill will exclude the impossibility of executing the concluded contracts. The ministry believes that such support will be able to ensure the implementation of capital construction projects within the framework of national projects.
 
The Ministry of Construction of Russia, based on an expert study on the increase in state capital investments in connection with the increase in prices for construction resources on the example of metal products, found that an increase in the cost of metal products and structures by 60% leads to an increase in the cost of construction by an average of 5%. In this connection, the proposed measures will allow the customer to make changes to the terms of the contract due to the changed price of construction products, which should be recognized as a significant circumstance. The current legislation does not establish such a right for the customer.

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