Pricing issues remain a key challenge in determining the initial cost of projects in state tenders, according to the construction company “Anagi.”
According to the General Director Irakli Gogolishvili, the sector has received assurances from the Ministry of Infrastructure that the matter will be addressed. However, businesses are still waiting to learn what specific measures the state will introduce.
Gogolishvili noted that one possible solution for longer-term projects could be price indexation, which would help protect infrastructure projects from market price fluctuations.
“At the last meeting [with government representatives], the issue of pricing in state tenders was raised, and this is indeed a problem. There is a certain promise that we will have a solution very soon. In what specific form this will be presented, I do not know, but all parties recognize the fact that the initial price calculation has shortcomings,” he said.
According to him, most state infrastructure projects last from 18 to 36 months, making accurate initial pricing essential. Without factoring in potential cost increases, project values quickly become outdated.
He added that indexation mechanisms should apply only to longer-term projects, while short-term projects lasting 6–8 months could remain exempt, since contractors can set realistic indicative costs for such timelines.
