Construction Industry Development Funds: Termination of the Mechanism
On 1 January 2026, the period of operation of the construction industry development funds established by Decree No. 259 (from 1 September 2021 to 31 December 2025), which had been in effect since 1 September 2021, came to an end.
As a result, contractors are no longer required to contribute 1% of the value of works performed using their own resources to the construction industry development funds.
The termination of this obligation reduces the financial burden on construction projects and may affect approaches to pricing under construction contracts.
Authors: Sergey Sushchenya, Nikita Apanasenok.
REVERA’s lawyers are ready to:
- analyse how the changes affect existing contracts;
- assist in amending contractual terms; and
- advise on project pricing.
REVERA’s lawyers will help amend existing contracts and advise on pricing matters. Contact us: info@revera.legal