Automatically translated version. May contain inaccuracies compared to the original.
Auditors demand termination of contract to build the lyceum shelter for 51,3 million: a cheaper bid was rejected
The State Audit Service obliged the education department of Stepivska Village Council to terminate the contract with the company “Yur Proekt Bud” for construction of a shelter for Mykhailivskyi Lyceum.
Auditors found violations in selecting the tender winner: the procuring entity rejected cheaper proposals, and the contract was signed with a company whose price was almost 6,6 million hryvnias higher than the lowest.
Why auditors demand contract termination
According to the State Audit Service’s conclusion, the education department unjustifiably rejected the proposal from BK “Interbud” for 44,75 million hryvnias, as well as the bid from Altaprombud, which was more expensive by only 100 hryvnias.
Instead, the winner of the procurement was chosen as “Yur Proekt Bud” with a proposal of 51,33 million hryvnias. In addition, the procuring entity did not require this company to correct an incomplete estimate.
The education department explains that “Yur Proekt Bud” has been carrying out works since 14 October. They believe that terminating the contract will lead to missed construction deadlines, loss of funding, and lawsuits. According to the department’s position, it is impossible to terminate the agreement without the contractor’s consent or an appropriate court decision.
Previous contractor did not finish construction
Earlier a contract to construct the shelter worth 46,6 million hryvnias was signed with the company “Nikopolska-STK.” However, the contractor stopped work in January.
By the end of May the company was paid 10,77 million hryvnias — for completing 17,66% of the total scope of work. The contract with it was terminated as of 1 June.
A repeat procurement was announced in September. Its estimated cost was 52,4 million hryvnias, and the shelter construction is to be completed by 30 April 2027.
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