The Government Efficiency Department is implementing significant changes regarding the determination of recommended costs for works to be procured under public procurement frameworks.

According to the Government Efficiency Department’s 2025 activity report, the Department has reviewed and analysed works worth tens of millions of lari procured by various government agencies and local authorities.

“Within the scope of this review, a notably inconsistent practice in determining construction works costs at the procurement planning stage became evident, which largely contributed to tenders concluding without result, poor quality of procured works, and non-fulfilment or inadequate fulfilment of obligations under public procurement contracts. The Government Efficiency Department held numerous meetings with procuring organisations implementing major infrastructure projects, as well as various target groups, including the non-entrepreneurial (non-commercial) legal entity Infrastructure Builders Association, regarding works to be procured under public procurement.

At the Department’s initiative, a decree of the Government of Georgia was issued, mandating the LEPL Levan Samkharauli National Forensics Bureau to determine the relevant recommended market costs for construction materials, machinery and equipment, and labour remuneration in connection with the procurement of construction works,” the document states.

According to the report, the Levan Samkharauli National Forensics Bureau has developed recommended market rates for labour remuneration, which implies an average increase of 20-25 per cent in wages.

Furthermore, the Bureau will prepare a list of market costs for construction materials, machinery and equipment, and labour remuneration related to the procurement of construction works, which will be updated annually and will enable government agencies, public/private organisations, and interested parties to plan and anticipate estimated costs associated with construction works effectively.

As the Government Efficiency Department notes, establishing appropriate recommended market prices for construction materials and their annual updates will facilitate efficient, rational, and transparent procurement, which, in turn, will be reflected in the quality indicators of procured works.