Housing construction costs under governmental contracts tied to average wage

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April 22, 2016 18:51

The cost of housing construction per square metre within public procurement orders will be limited by the nominal average monthly wage value, multiplied by 1.2 on the commissioning date.

With this measure, the government aims to optimise social housing costs, since saved funds will remain at the customer’s disposal. Customers will be able to calculate their financial capabilities in terms of housing construction, the state will improve budget forecasting with regard to subsidised housing construction, and practices, when construction costs were recalculated during commissioning, will be eliminated. These new rules for subsidised housing construction will be actively used in the regions, due to lower construction cost.

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