The article examines modern approaches to determining the expected cost of construction works and mechanisms for changing the procurement contract in EU countries using the example of Lithuania. An algorithm for an integrated construction cost management model is proposed, combining life cycle approaches (LCC), public procurement and contract management. The model is tested on examples of reconstruction of residential, religious and infrastructure facilities in Ukraine. It is proven that the application of the model allows reducing cost overruns by 20 – 25 % and increasing the transparency of the implementation of investment projects.
Introduction. War, destruction of construction sites and the urgent need to rebuild public, residential, religious and infrastructure facilities in Ukraine require the introduction of modern construction cost management tools. Limited budget resources, donor programs and the need to ensure a high level of transparency determine the relevance of finding effective mechanisms for forming the expected cost of procurement and controlling costs at all stages of the project life cycle.
Problems. In the practice of the EU, in particular Lithuania, a multi-level cost management system is in place, based on Directive 2014/24/EU, standards for estimating, the use of market price registers (Sistela) and standardized procedures for amending contracts. In contrast, in Ukraine, the cost-normative approach has traditionally dominated, although the KNU «Guidelines for Determining the Cost of Construction» (with amendments 1–5) and the CMU Resolution No. 1512 indicate a gradual transition to a hybrid regulatory-market model. The problem lies in the lack of a comprehensive scientifically based model that would integrate modern tools for planning, forecasting and controlling the cost of construction in the context of reconstruction and restoration.
The aim of the study is to develop an integrated model for managing the cost of construction in the context of reconstruction and restoration of public, religious and infrastructure facilities, taking into account best European practices and the possibilities of their implementation in Ukraine.
The materials and methods of the study are aimed at substantiating an integrated model of construction cost management in the context of reconstruction and restoration, as well as at a comparative analysis of Ukrainian and European practices. The methodological apparatus is built on regulatory documents, economic models, digital tools and empirical examples of real projects.
Results. As a result of the study, an integrated model of construction cost management was developed, which combines the life cycle approach (LCC), public procurement mechanisms, contract change control tools and multi-level cost verification. Testing the model on examples of reconstruction of residential, religious and infrastructure facilities in Ukraine demonstrated its effectiveness: cost overruns were reduced from 30 % to 8 %, the risk level was approximately 80%, and cost savings amounted to 20 – 25 % of the total project budget. It is confirmed that the use of MCI, MLCVM and DBPM models ensures transparency of cost formation, increases the accuracy of cost calculations and allows harmonizing Ukrainian practices with European standards.
Conclusions. Based on a comparative analysis of Ukraine and Lithuania, the possibilities of adapting European practices were analyzed. The developed structure of the integrated cost management model combines LCC, market indicators and change control mechanisms that meet European standards. The model testing confirmed its effectiveness: cost overruns were reduced by 20 – 25 %, and risks by ≈80 %. The model ensures increased transparency and reliability of cost formation in reconstruction and restoration conditions. It is recommended to implement the model in public procurement and reconstruction projects during the reconstruction of residential, religious and infrastructure facilities to harmonize with EU practices.
