Revaz Sokhadze Holds a Working Meeting on Improving Quality of Cost Estimates in Construction Projects

Minister of Infrastructure of Georgia – Revaz Sokhadze, together with his deputies, heads of departments within the Ministry, representatives of Efficiency Department of the Administration of the Government of Georgia (GOG), and the Levan Samkharauli National Forensics Bureau, met with cost estimators from the construction field.

The working meeting addressed issues related to the quality of cost estimates in the preparation of public infrastructural projects, challenges in this field, and possible solutions.

Revaz Sokhadze emphasized the importance of the profession of a cost estimator in the planning and implementation of construction projects. According to him, a properly prepared cost estimate is one of the key prerequisites for determining a realistic project cost, ensuring the effective use of public resources, and mitigating potential financial and technical risks during construction.

“The position of the State is clear – we are ready and prepared to pay the actual market value for a high-quality product, although we must receive the corresponding quality for the corresponding price. In that process, proper and professional preparation of the design – including the quality of the cost estimate – is of particular importance. There are cases where a project cost changes significantly a result of a review. Both artificially inflated and unrealistically low prices are unacceptable. Our goal is the cost estimate to be based on current standards, actual market prices, and a professional, objective assessment,” stated Revaz Sokhadze.

As per Minister, the cost estimate is one of the most important parts of preparation of a construction design. Its quality largely determines how accurately the project cost is determined, and how effectively the procurement and subsequent construction processes will be carried out. In practice, the Ministry faces challenges that begin at the preparation stage of design and cost estimate and can subsequently affect the progress, timeline, and cost of the work. Mr. Sokhadze also noted that the goal of the Ministry is to discuss existing issues in this field with professional circles and to work with them on a regular basis.

The meeting participants discussed current cost-estimating practices, professional qualifications, the development of standardized approaches and methodologies, as well as the training of qualified specialists in this field and the strengthening of professional competencies.

The meeting took the form of a dialogue. Cost-estimators shared with the Minister the challenges that they face in practice and their views on those changes that would help improve the quality of cost estimates in the state construction projects.

The Ministry of Infrastructure, in collaboration with the industry representatives, will continue its efforts to improve the quality of construction design preparation, cost-estimation practices, and relevant professional competencies.