Check out our previous recommendations here: 24 hours to eliminate any discrepancies: practical cases and advice to authorised persons
Construction supervision — regardless of whether it is new construction, reconstruction or major repairs — is the key to any construction activity. To ensure proper supervision, Ukraine has an institution of technical supervision.
Technical supervision is the responsibility of the procurement originator (developer) throughout the entire period of construction of the facility. Its main purpose is to monitor compliance with design solutions, state standards, building codes and regulations, as well as the quality and scope of work performed.
In Ukraine, technical supervision is regulated by a number of laws and regulations:
- Law of Ukraine “On Regulation of Urban Development”
- Law of Ukraine “On Architectural Activities”
- Resolution of the Cabinet of Ministers of Ukraine No. 903 “On Architectural and Technical Supervision during the Construction of an Architectural Facility” dated 11 July 2007
- Amendment 2 to the Guidelines for Determining the Cost of Construction, approved by Order No. 244 of the Ministry of Communities and Territories Development of Ukraine dated 1 December 2022.
- Order No. 787 “On Approval of Model Agreements for Engineering and Consulting Services in Construction (Services of a Consulting Engineer) and for Technical Supervision in Construction” dated 6 August 2024.
Common mistakes in the execution and performance of technical supervision contracts (according to the State Audit Service of Ukraine)
Based on the findings of the audits conducted by the State Audit Service of Ukraine (SASU), several common technical supervision mistakes have been identified:
1. Entering into contracts with unauthorised persons
Problem: Technical supervision can only be carried out by persons who have a qualification certificate issued by the Architectural and Construction Certification Commission. A fairly common violation is assigning technical supervision to employees of design or construction firms that perform work directly on construction sites they are supposed to supervise (this is especially pertinent to sites of medium (CC2) and high (CC3) impact classes). This creates a conflict of interest, since the person may be incentivised to hide shortcomings or violations.
Upon detection of this violation at the stage of work performance, the SASU requires termination of the contract. If the contract is completed, SASU identifies the lack of proper supervision and a violation.
Recommendation: When entering into a technical supervision contract, make sure to include a provision stating that the technical supervision engineer cannot be an employee of design and construction firms performing any work on the construction sites under supervision.
2. Inadequate performance by a technical supervision engineer
Problem: According to the Resolution of the Cabinet of Ministers of Ukraine No. 903, persons performing technical supervision must verify the following:
- Availability of documents confirming the quality characteristics of structures, products, materials and equipment (technical sheet, certificate, laboratory test results, etc.);
- Compliance of the construction and installation works performed with the design solution, state standards, building codes and regulations.
In practice, the technical supervision engineer often simply signs the Construction Works Completion Certificate (form No. KB-2v) as a formality, without a thorough check. Moreover, many contracts fail to clearly indicate the frequency of on-site visits and their recording, which the SASU considers to be evidence of inadequate performance by the technical supervision engineer and a lack of supervision exercised by the procurement originator.
Advice:
- Oblige technical supervisor to indicate: “The Certificate have been verified. Objections/No objections” in Construction Works Completion Certificates.
- Should there be any objections, insist that the technical supervision engineer record the identified deficiencies in the General Work Log and draw up a separate certificate thereon in the presence of the contractor and the procurement originator.
- Make absolutely sure that the technical supervision engineer signs the Hidden Works Completion Certificates ((Mandatory) Annex E to DSTU 9254:2023).
- Clearly indicate the number of on-site visits and their frequency in the contracts.
3. Non-compliance with the approved forms of Construction Works Completion Certificates
Problems: Payment for technical supervision services is made against acts of acceptance. However, according to the Guidelines for Determining the Cost of Construction (as amended by Order No. 244 of the Ministry of Development of Communities and Territories Development of Ukraine dated 1 December 2022), mutual settlements must be made on the basis of the Technical Supervision Services Acceptance Certificate, the form of which is given in Annex 43 to these Guidelines. The SASU interprets non-compliance with the approved form as payment under improperly executed primary documents, which may constitute financial violations.
Recommendation: When signing certificates to pay for technical supervision, follow the Guidelines for Determining the Cost of Construction, in particular the form given in Annex 43.
4. Non-compliance by procurement originators with the Ukraine Facility Framework Agreement
Issue: When making procurements and entering into technical supervision contracts, procurement originators fail to comply with the Framework Agreement in terms of special mechanisms for implementing EU funding for Ukraine under the Ukraine Facility instrument signed between Ukraine and the European Union.
When monitoring public procurement, the SASU has identified numerous cases of non-compliance by procurement originators with Articles 3, 5, 7, 16, 17 of the Framework Agreement (UA-2025-04-30-011399-a; UA-2025-04-30-011399-a; UA-2025-04-30-011408-a)
Recommendation: When entering into a technical supervision contract, clearly set forth the requirements indicated in Articles 3, 5, 7, 16, 17 of the Framework Agreement
- Direct reference to the Agreement: Always indicate that the contract is executed under the Ukraine Facility and is subject to the relevant provisions of the Framework Agreement.
- Specific obligations: Reword the general principles in the Articles of the Agreement into specific, measurable obligations for your partner.
- Supervision and audit right: Clearly stipulate the right of the procurement originator, as well as Ukrainian and European regulatory authorities, to conduct inspections and audits.
- Liability for violations: Provide for liability mechanisms in case of failure to comply with these requirements.
