Selection of Inappropriate Types of Price Dumping in Construction and Design Works

To prevent unacceptable forms of price dumping in procurements that involve price ceilings, legislative restrictions have been established. According to Kazakhstan’s legislation, the permissible limit for price dumping in construction and design works is set between 5-10%. The buyer (Contracting Authority) can choose another rate of dumping, which may result in lowering the dumping threshold from suppliers.

To identify such violations, the following measures are necessary:

1. Verify the presence of specific procurement criteria in the announcements on the public procurement portal, such as:

• “Work with TEA (Technical and Economic Justification) and PSD (Project Cost Documentation)/Maintenance work on existing roads”;
• “Work on developing TEA/PSD”.

2. Cross-reference the bid prices submitted by potential suppliers with the Order No. 249-нқ issued on November 14, 2017, by the Chairman of the Committee for Construction and Housing and Utilities under the Ministry for Investments and Development of Kazakhstan, which confirms normative documents for pricing in construction.