The Georgian Government is preparing a new package of legislative amendments to the regulations governing state construction projects, aimed at improving the delivery of infrastructure projects, reducing the risk of project suspension, and establishing a more sustainable and accountable environment within the construction sector.

In connection with the planned changes, Prime Minister Irakli Kobakhidze and Minister of Infrastructure Revaz Sokhidze met with representatives of construction companies and commercial banks.

The meeting was also attended by the Head of the Administration of the Government of Georgia, Levan Zhorzholiani; the Head of the Efficiency Department, Guram Dumbadze; the Chairman of the State Procurement Agency, Levan Razmadze; and representatives of the Levan Samkharauli National Bureau of Forensic Expertise.

By decision of the Georgian Government, amendments are planned to the Technical Regulation approved under Decree No. 55 and to the Law of Georgia on State Procurement.

The reform is intended to strengthen the construction sector, enhance the financial sustainability of state projects, and establish higher standards of accountability and transparency within the state procurement system.

Among the specific changes, the cap on overhead and contingency costs will be increased; prices for construction materials and machinery will be updated; and an indexation mechanism will be introduced to enable partial adjustments of contract values in response to price fluctuations during the course of a project.

The reform also includes support for small and medium-sized enterprises, enabling them to combine their experience with that of their subcontractors when bidding for government contracts. This will provide companies with greater opportunities to participate actively in large-scale projects.

At the same time, accountability and oversight mechanisms are being tightened. Participation in tenders with unrealistically low bids is to be restricted, and the blacklisting mechanism is being broadened, as a result of which companies linked to individuals implicated in financial or corruption-related offences may be disqualified from state tenders.

These reforms constitute one of the most substantial systemic overhauls of the construction sector and state procurement system to date. The amendments are expected to facilitate the delivery of higher-quality, more sustainable infrastructure projects that are completed more efficiently.