Fixed building prices in Belarus

Belarus: New mechanism for fixed building pricing introduced in Belarus from 1 January 2015

The fixed building contract pricing mechanism has changed in Belarus since 1 January 2015. Starting from 1 January all the parties to building relations must keep to the fixed building contract pricing mechanism defined by legal acts irrespective of funding sources (previously this mechanism was obligatory only if public funds were [fully or partially] involved).

The list of permissible grounds for changing fixed building prices has changed as well – from now it is impossible to change the fixed price if the contractor subcontracts to a company with a different taxation system.

Moreover, under the new regulations the grounds for changing fixed prices vary depending on whether construction is funded (a) at the expense of public funds or (b) at the expense of other than public funds. In particular, the grounds for changing fixed prices for clause (b) are the following: amendments to the tax regulations (establishment and (or) abolition of taxes, tax privileges, changes of tax rates); change of prices for materials, equipment, machine operations; changes of anticipated building price indexes and building price indexes by more than 2 %; changes in construction periods due to late payment by the customer.

There are also some changes to the payment procedure for work performed. From 1 January the payment procedure will be defined by the building contract, acceptance of building and installation work certificates, certificates of costs and value of works performed, approved by the Ministry of Architecture and Construction.

Regulations of the Council of Ministers of the Republic of Belarus No. 1061 dated 10.11.2014 enters into force on 1 January 2015.

Source: National legal Internet portal of the Republic of Belarus (NLIP) 14.11.2014 5/39688

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