In Cherkasy region, a significant overestimation of the cost of building materials was revealed during the reconstruction of a residential building in Uman, destroyed by a Russian missile in April 2023. According to experts, the prices for individual items in the estimate turned out to be twice as high as the market price, and the possible overpayment exceeds UAH 4 million.
On September 2, the Construction Department of the Cherkasy Regional State Administration held a tender and ordered the reconstruction of a residential building at 25 Zakhisnyky Ukrainy Street from Bud Capital Group LLC for UAH 47.89 million. The work is scheduled to be completed by June 2026. The building was hit by a Kh-101 missile in April 2023, killing 23 people, including six children.
Reconstruction work started back in November 2023: the previous contractor, PE “Umanrembud 2”, was allocated UAH 67.82 million, and later, without bidding, another UAH 23.50 million. Taking into account the new contract, the total cost of restoring 99 apartments will exceed UAH 110 million, i.e. the average price of restoring one apartment will be about UAH 1 million — significantly more expensive than the market value of housing in Uman.
Analysis of the estimate showed a significant overpricing of a number of materials:
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Polyvinyl acetate dispersion — 379 UAH/kg, from suppliers — 146–148 UAH/kg.
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Metal-plastic windows — 8,641 UAH/sq. m, similar offers — 4,386 UAH/sq. m.
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Ceresit CT 126 gypsum putty — 42 UAH/kg, 50% cheaper.
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Mineral wool insulation Izovat Fasad — 7,690 UAH/cubic m, market price 3,140–3,783 UAH/cubic m.
The total possible overpayment for these positions alone exceeds UAH 4 million.
The cheaper competitor, PE “Umanrembud 2”, did not pass the tender due to formal errors in the documentation, in particular, incomplete insurance guarantees and lack of confirmation of ownership of the equipment.
Bud Capital Group LLC, registered in December 2022, is owned by Roman Usatyuk, Ivan Huchenko, and Volodymyr Tkachenko. The company has already received government contracts worth over UAH 210 million, mostly from the same customer.
The works are financed from the state budget - UAH 40.73 million, and from the local budget - UAH 8.64 million. The reconstruction project was developed by the State Enterprise "State Research Institute of Building Structures", and a positive conclusion was given by the branch of the State Enterprise "Ukrderzhbudekspertyza".
