The Georgian government has amended regulations governing price indexation for infrastructure projects amid rising construction material and labor costs, significantly expanding the rules’ scope. The new decree, signed by Prime Minister Irakli Kobakhidze, took effect immediately upon publication.
The amendments extend the temporary price indexation mechanism to projects implemented by entities within or managed by the Ministry of Regional Development and Infrastructure. The rules apply to existing and future contracts, as well as announced and upcoming tenders, including public procurement related to state secrets.
Suppliers working on projects under the ministry’s system must apply to contracting authorities for the temporary rules to be applied by December 10, 2026. Companies that miss the deadline will no longer be eligible for the temporary relief measures.
The decree also clarifies the periods covered by indexation. For existing contracts, it applies to work performed from April 1, 2026. For tenders announced between June 1, 2026, and January 1, 2027, it covers work performed during that period, subject to specified exceptions. In both cases, the base period is the month corresponding to the date 28 days before the tender opening. For ongoing tenders and those announced before June 1, 2026, January 2026 is designated as the base period.
