Estimates for the construction of a shelter for a lyceum in Pivdenoukrainsk revealed overpriced by millions

According to the monitoring portal Dozorro

the Department of Urban Planning, Architecture and Capital Construction of Mykolaiv Regional State Administration has selected a contractor to build a storage facility at Lyceum No. 4. The tender was won by First Ukrainian Construction LLC, and the contract value was UAH 70.7 million.

The company undertook to build the shelter at 16 Nezalezhnosti Avenue, Pivdenoukrainsk, Mykolaiv Oblast.

The cost estimate includes a significant portion of hot-rolled reinforcing steel of class A-III of various diameters, which costs UAH 46,958.58-50,310.18 per tonne (including VAT). Prices for this material from other suppliers are significantly lower: "Metinvest-SMC offers it at 33,500 UAH/t, Iron World at 31,849-35,389 UAH/t, and KT-Stal at 36,990-37,920 UAH/t. In this position, the overpayment can reach UAH 3.9 million.

Prices for other materials also look overpriced. For example, the winning bidder will supply concrete mix B25 (M350) at UAH 4,906.30 per cubic meter, while Kovalska will sell it at UAH 3,513.00 per cubic meter, NiRaise at UAH 3,340 per cubic meter, and Mykolaiv Concrete Products Plant at UAH 3,774 per cubic meter. The potential overpayment for construction materials could amount to about UAH 6 million. In addition, the contract price is dynamic and may change during the course of the work.

For large-scale projects, construction materials are usually purchased in bulk, which allows for lower prices than in retail. Instead, First Ukrainian Construction LLC offers materials at prices that exceed even retail prices.

First Ukrainian Construction LLC was the only bidder in the tender, and its offer was only 3% lower than the expected cost.

The company was founded in Kyiv in September 2022 by Denys Ryzhkov. In March 2023, Serhiy Tkachenko became the owner. After that, the company received the first contract to repair the basement of the Hvozdychka kindergarten in Voznesensk, and since 2023, contracts worth UAH 157.6 million.

This is not the first time the company has been involved in the construction of storage facilities. However, experts have repeatedly recorded possible overpricing of materials. In September 2023, a similar situation was recorded in the estimate for the construction of a shelter for the lyceum of the Oleksandrivka village council. In July 2024, Nikcenter also reported on alleged overpayments in the construction of a shelter for the Prybuzkyi lyceum. After the audit and DOZORRO's appeal, the contracting authority canceled that procurement.