Justification of the feasibility of applying a dynamic contract price when performing work on the operational maintenance of public roads use

published:
Number: Issue 32(2025)
Section: Economy. Management
The page spacing of the article: 11-23
Keywords: road, operational maintenance, dynamic contractual price, contractual relations.
How to quote an article: Artem Bezuglyi, Bibyk Yuliya, Ihor Hresko, Natalia Mudrychenko. Justification of the feasibility of applying a dynamic contract price when performing work on the operational maintenance of public roads use. Dorogi і mosti [Roads and bridges]. Kyiv, 2025. Issue 32. P. 11–23 [in Ukrainian].

Authors

State Enterprise «National Institute for Development Іnfrastructure» (SE «NIDI»), Kyiv, Ukraine
http://orcid.org/0000-0003-3883-7968
State Enterprise «National Institute for Development Infrastructure» (SE «NIDI»), Kyiv, Ukraine
https://orcid.org/0000-0002-7175-7436
State Enterprise «National Institute for Development Infrastructure» (SE «NIDI»), Kyiv, Ukraine
https://orcid.org/0000-0002-9423-5518
State Enterprise «National Institute for Development Infrastructure» (SE «NIDI»), Kyiv, Ukraine
https://orcid.org/0000-0002-7197-8909

Summary

Introduction. Operational maintenance of highways — is a set of measures aimed at preserving road infrastructure and ensuring continuous traffic. From an economic point of view, this is a basic type of service, according to which current costs for maintaining the functionality of the road network are formed, resource savings are ensured and future long-term costs associated with major repairs of the road are reduced.

The dynamic contract price for the operational maintenance of highways is a promising tool that will contribute to adaptation to the realities of the modern economy and ensure the effective use of funds. However, its implementation requires clear regulations, transparency of processes, improvement of the regulatory framework, development of project monitoring and management technologies.

If it is impossible to finally establish the type of contract price during the conclusion of the contract due to uncertainty of costs or other circumstances, the parties to the contract determine the type of dynamic contract price, as well as the procedure for its adjustment during the performance of road works or services. Therefore, the dynamic contract price — is an estimate to be specified in the event of a change in the current prices for resources taken into account in the contract price, as well as for other reasons determined by the terms of the contract.

Therefore, the use of a dynamic contractual price when concluding contracts for the operational maintenance of public highways will increase economic efficiency, since: costs are subject to clarification in accordance with fluctuations in prices for material, technical and labor resources, etc.; risks for contractors will be reduced, which will positively affect competition and the quality of services; at the same time, state funds will be used more rationally.

Thus, the dynamic type of contractual price offers a more flexible model for determining the cost of works and services, and carrying out mutual settlements, which helps to reduce risks for contractors and customers, ensures a fairer distribution of financial obligations in the event of fluctuations in market prices, and also forms conditions for rational use of public funds and increasing the economic efficiency of public investments.

Issues. The following scientists Ilyash S. I., Kanin O. P., Lipskyi G. E., Pechonchyk T. I, Prusenko E. D., Stasyuk B. O., Tsinka A. O. and others investigated the problems of determining the cost of works on the operational maintenance of public highways, as well as a significant contribution to the development of theoretical and practical foundations, solving various issues with the development of the road management system and transport infrastructure of Ukraine.

The issue of correctly determining the cost of works and services at all stages of the investment process becomes especially relevant in the conditions of the already difficult economic situation that has developed in the country against the background of hostilities on the part of the Russian Federation, as well as the limited level of financing that exists today, since it is impossible to ensure full proper financing of infrastructure restoration services in the areas under which the functions of the customer of works on the operational maintenance of public highways are assigned.

According to the results of the analysis of public procurement through the Prozorro electronic procurement system, it can be seen that the vast majority of contracts for the operational maintenance of public highways are concluded for a period of 3 years. During this period, there may be an unpredictable increase in the cost of material, technical and labor resources, which may be reflected in the inability of the contractor to perform both certain types of work and work in general at a firm contractual price. This can have a negative impact on ensuring continuous, safe and convenient movement.

Purpose. The purpose of the article is to substantiate the expediency of applying a dynamic contractual price when concluding contracts for the operational maintenance of public highways, which will create prerequisites for making changes to the relevant regulatory documents, as well as contribute to a more rational and effective use of budget funds.

Materials and methods. During this study, an analysis of normative legal acts and normative documents regulating the procedure for applying the contract price in the performance of road works and services was carried out, as well as an analysis of world experience in the implementation of contracts under the terms of the dynamic contract price was carried out.

Results. In the course of the conducted research, the expediency of using a dynamic contract price in the performance of works on the operational maintenance of public highways was analyzed. Taking into account the practice of performing these works in the leading countries of the world, as well as the analysis of normative legal acts and documents, conclusions were drawn and proposals were prepared for the application of a dynamic contractual price when concluding contracts for the operational maintenance of public highways.

Conclusions. Therefore, the implementation of changes related to the application of a dynamic contract price will be an important step on the way to improving pricing mechanisms, the main result of which is a flexible system of mutual settlements for completed works or services.

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