Why are road constructors being forced out of the market?
The construction companies that concluded the contracts for the repair of roads in 2013-2014 faced the problem of correcting the cost of the contract.
The purpose of the adjustment was to make payment at the actual value at the time when the works were performed. The calculation was based on changes in monthly statistics on the prices of basic materials - bitumen, crushed stone, cement, steel, equipment and wages. The cost adjustment was calculated 18 months after the start date of the works.
Akmola Transport Prosecutor's Office initiated inspections in the regional branch of the National Company KazAvtoZhol JSC in 2019. As a result of the inspection, lawsuits have been initiated in court against several construction companies to invalidate additional agreements.
In his conclusion, the auditor relied on the current order of the Minister of Investment and Development No. 725 dated October 17, 2016, which regulates the financing of works on construction of highways, there are no norms for adjustment of the cost of works. In the new decree, the state body did not take into account the previously concluded transactions.
Although, at the time of signing the main contract with companies in Kazakhstan, there was Regulation No. 1038, which provides for adjustments in the cost of the contract. At the same time, the contracts were executed on time, and payments were made to the budget, salaries of employees and contractors were paid.
Representatives of construction companies at the Atameken platform noted that recognition of additional agreements as invalid will lead to forced bankruptcy and the market will be occupied by foreign companies. Judicial acts have already been issued against some entrepreneurs.
The entrepreneurs will be provided with all the necessary legal advisory assistance in the course of the court proceedings.
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