Project budgeting. Types and purpose of budget. Project stage

Project budgeting is the art of developing and managing a budget that covers all costs incurred and keeps the project sustainable in the long term. Budget preparation is one of the project management processes that aims to ensure that projects are developed, justified, and ready for use in a cost-effective manner.

There are two main reasons why drafting budgets is important. First, the approved budget helps finance the project. The second reason is that by comparing the project and the actual cost of the approved budget, it can be determined whether the project is going according to plan.

Information necessary for drawing up draft budgets:

• assessment of the cost of work;
• valuation basis;
• project limitations;
• project schedule;
• resource calendar;
• contracts.

A job cost estimate is an individual cost estimate for each activity or set of jobs that will be performed as part of a project. For each activity, the cost estimate includes direct labor, materials, equipment, services, and information technology.

The basis of assessment is the justification of the assessment documents confirming the details of the assessment of the cost of work. For example, how the estimates were made, assumptions and limitations, and the level of confidence in each estimate.

Project limitations - it is important to determine if there are any funding restrictions that the organization may have, contract restrictions or contract restrictions, such as government agencies.

The project schedule will be used to determine the duration of the budget over time.

The resource calendar lets you know which resources are assigned to a project and when they are assigned. At the same time, each resource uses its own standards and interacts with the project schedule.

Information from contracts for goods or services will be used to determine costs.

It is necessary to adhere to the principle of sequential development when budgeting a project. The basics of drafting budgets consist of three main steps:

• estimation of expected costs;
• budget approval;
• ensuring economic efficiency.

Formation of the budget structure

How is the preliminary project budget prepared? The structure of this is revealed through a chart of accounts for recording the cost of a specific program. As a rule, in order to determine it, it is enough to have a traditional accounting estimate.

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Budgeting is considered to be a cost plan or cost budgeting. This means that after preliminary planning you need to understand how much, when and for what exactly the funds will be paid. Therefore, in this case, it is possible to use any methods of presenting losses. However, it should be remembered that they must satisfy the practical requirements of the stakeholders interested in them, as well as established standards. In addition, they must answer the questions that interest project investors.

Analytical structure of budgets. Main analytical sections of budget planning

Budgeting as the process of drawing up financial plans (budgets) is applicable to many objects at various levels of management: the company as a whole, a separate structural unit (budget of a sectional department, etc.), a work program or management function (overhead budget, sales budget), a separate contract or project, specially allocated accounting centers (profit centers, cost centers, etc.).
When setting up budgeting, it is very important to determine its objects (analytical sections), as well as the levels of budgeting corresponding to the levels of the management hierarchy (budgets of branches or financial responsibility centers). The main objects (analytical sections) of budget planning include:

• Budgeting scenarios (budget options)
• Turnover items by budget
• Central Federal District - centers of financial responsibility
• Projects
• Counterparties
• Treaty
• Bank accounts
• Nomenclature
• Nomenclature groups

Budget presentation forms

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Both planned and actual budgets have certain forms of presentation. So, among them it is important to note the following:

• calendar schedules, which are a kind of cost plans;
• loss distribution matrices;
• expense bar charts;
• similar graphs of accrued totals (cumulative) losses;
• line diagrams of cumulative costs distributed over time;
• displaying the structure of circular losses.

It is worth noting that at different stages of project development, different designs of design and working documentation are relevant. The point is that we are talking about developing different types of budgets. They differ from each other in both the required accuracy and purpose. It is worth noting that the permissible budget error becomes significantly smaller as the project develops.

Proactive Budgeting

In recent years, it has been increasingly said that the role of a citizen in the budget process should not be limited only to paying taxes. And if previously the main emphasis was on openness and accessibility of information about the budget, now simply knowing where and how budget funds are spent is no longer enough. The topic of proactive budgeting is being actively discussed. Initiative budgeting (EB) is understood as both a form of involving citizens in the budget process through participation in determining priorities for spending budget funds by putting forward initiatives and subsequent monitoring of project implementation, as well as the entire set of practices of civil participation in the budget process.

The introduction of proactive budgeting mechanisms provides certain benefits to both citizens and authorities:

But despite the presence of obvious advantages and positive dynamics in the number and cost of implemented projects, it is not yet possible to talk about widespread distribution and a proven mechanism.
Unresolved issues

Initiative budgeting has been actively implemented in Russia since 2013, but there are still some unresolved issues that make it difficult to spread the relevant practices everywhere.

First of all, we are talking about the lack of a regulatory legal framework. At the legislative level, even the definition of the concept of “initiative budgeting” is not enshrined anywhere. Head of the Center for Initiative Budgeting NIFI Ministry of Finance of the Russian Federation V.V. Vagin, in his speeches, regularly emphasizes the importance of including the corresponding concept in the legislation on local self-government, as well as additionally taking into account the principle of civil participation as part of the principles of the budget system approved by the Budget Code of the Russian Federation.

At the same time, due to the lack of a legally enshrined concept of “initiative budgeting,” difficulties arise with the formation of a unified methodological approach in the regions and the Russian Federation as a whole, with assessing the effectiveness of the implementation of relevant projects, with the dissemination of practice and the involvement of new regions in it. Many regions believe that proactive budgeting projects are already being implemented on their territory, meaning completely different practices of civil participation.

The lack of a unified methodological framework has an extremely negative impact on the expansion of information security practices. There is a lot of talk in the expert community about analyzing existing experience and replicating best practices, but the need to formulate, based on a significant amount of accumulated material, general requirements or methodological recommendations for government bodies, local governments and citizens for the implementation of proactive budgeting projects has long been overdue.

Another area that requires development is the creation of the necessary infrastructure. In this case, we are usually talking about the creation of regional project centers, an information system and a training system for both government officials and consultants, and citizens themselves, i.e., activities that require additional funding, which is an additional burden on the budget of the region or municipality. And that, undoubtedly, is also an obstacle to the wider adoption of information security practices.

A formal approach to performance assessment also does not contribute to the spread of proactive budgeting. Most often, such indicators as the number and total cost of implemented projects are assessed, but they do not fully allow us to assess the effectiveness of the mechanisms used. 100 projects – is it a lot or a little? There are 10% more projects than last year - is this good or an insignificant growth rate in the current situation?

It seems that previously these indicators could be considered from the point of view of creating incentives for the implementation of information security practices as a new mechanism. However, at present, there is already an urgent need to evaluate indicators that allow us to assess the effectiveness of the work being carried out in terms of coverage of the population with participation in this activity, obtaining a budgetary effect, the availability of comparability of data at the level of constituent entities of the Russian Federation, etc.

Indicators of citizen involvement in the practice of proactive budgeting and the share of budget expenditures distributed with the participation of citizens could become more objective. But here, unfortunately, everything is not so rosy.

Analyzing the results of the sixth international rating “Budget Openness Index 2017”, we can say that in the area of ​​increasing the openness of budget data, Russia managed to achieve good results: 72 points against 43 points on average for the countries under consideration. However, the level of citizen participation in the budget process is rated low: 13 points out of 100 in 2021, which is 12 points less than in 2015.

These indicators directly indicate that the “traditionally” used opportunities to ensure citizen participation in the budget process (public hearings, the activities of public councils) do not ensure mass involvement of the population.

Thus, one of the main unresolved issues is the creation of an accessible and popular platform for the exchange of views on the distribution of budget funds between citizens and government bodies, local governments.

Options for interaction between authorities and the population

The issue of interaction with the population in regions and municipalities is approached differently. In general, there are four tools that have become widespread. In regional practice, they are used both on their own and in conjunction at different stages of the implementation of initiative budgeting projects.

Firstly, we are talking about the distribution of part of the budget funds with the help of a commission consisting of citizens and government representatives. As a rule, such a commission includes no more than 10-20 people, who receive the right to put forward initiatives. Members of the commission are selected either by lot or by voting from the proposed candidates.

The advantages of this option include:

• efficiency of decision-making: it is faster to gather 10-20 people, meetings can be held more often, it is easier for participants to agree;
• intensive training of participants: when creating a commission, specialized training is often carried out on the topic of proactive budgeting, which allows further issues to be resolved at a different quality level.

But this option also has obvious disadvantages.
First of all, this is the low involvement of citizens in discussing issues of budget allocation. The role of the bulk of the population, at best, is reduced to the selection of commission members. That is, the majority of citizens never develop a sense of involvement in the budget process. The social burden on commission members is also significant. Participation in its work requires significant time expenditure (training, holding meetings, etc.), which is not always available to working citizens. But the most effective distribution of funds is still possible if the interests of all groups of the population are taken into account.

Secondly, it is worth noting the option that is most widespread. These are meetings (gatherings) of citizens in which everyone can participate.

At the meeting, initiatives are put forward to solve the most pressing problems for the locality. Discussions and voting often take place there. In some cases, only the most popular initiatives are selected at the meeting, and the final vote is organized on the official websites of authorities (local governments) on the Internet.

The advantages of this option are wide coverage of citizens and the possibility of lively dialogue both between authorities and the population, and between different groups of the population.

The disadvantages are also quite obvious. Firstly, people need to be attracted to the meeting, and in regional practice there have been cases when meetings were canceled due to lack of quorum. Secondly, it is necessary to organize special moderation, otherwise there will be no constructive dialogue due to low activity of participants or too emotional, but unproductive discussion. For all this, we need specialists—consultants who deal with proactive budgeting issues.

The presence of such specialists is associated with the third option - the creation of a project office or an initiative/working group. Consultants go to the field, conduct outreach work there on the basic principles and stages of implementing proactive budgeting projects, organize and moderate meetings, prepare reference materials and publications, and conduct training.

This helps to ensure close interaction with the population, but the question arises of finding people who have the necessary qualifications and are ready to do this work, as well as resources to support their activities.

These three considered options are good in the case of solving specific issues, at the final stage of decision-making, or when implementing proactive budgeting projects in settlements with a small population. Cities have a significantly larger population than settlements, making it difficult to organize meetings. People are more divided; often residents of one inner-city district are not at all concerned about the problems of the neighboring one. At the same time, citywide problems remain that affect all residents. All this necessitated the search for an alternative option for interaction between authorities and the population.

This option was the use of information technology in the implementation of proactive budgeting projects. A special portal is a popular tool in many cities. The examples of Surgut, Tver and Moscow are particularly illustrative.

The city of Surgut has expanded the scope of its “Budget for Citizens” website, using its functionality to solve problems related to proactive budgeting. In a separate section “Budget of Surgut online,” the reception of initiatives is organized, online voting is possible, and explanatory and educational information is also provided.

The portal “What Tver Wants” is positioned as a place where every resident of Tver has the opportunity to become an active participant in the improvement of the city. Users can propose their ideas and solutions, evaluate existing ideas (a system of likes and dislikes has been implemented), and keep abreast of current news (a blog is maintained on the portal).

In cities with a population of over a million, the development of proactive budgeting is, in principle, impossible without the use of information technology, so the experience of Moscow differs significantly from other regions. There are three services in Moscow:

• a crowdsourcing platform where citizens propose and discuss ideas within the framework of topics set by the authorities;
• the Active Citizen portal, where voting is held on ideas selected on the crowdsourcing platform;
• “Our City” website, created to record complaints and appeals from citizens.

The use of such portals in the regions helps to ensure significant coverage of the population due to accessibility.
The user can come in at any time, leave his proposal, vote for other ideas, and get acquainted with all posted materials. Research by VTsIOM has noted in recent years a trend towards an increase in the share of the Internet as the main source of news for the population. Maintaining and maintaining a portal, as a rule, costs less than maintaining a project office. The capabilities of the portal platforms used make it possible to support a fairly diverse functionality that could be applicable at all stages of the implementation of proactive budgeting projects.

Thus, the creation of a special portal (or a section on existing official websites of authorities) as an option for interaction between authorities and the population seems to be the most promising.

What prevents the mass spread of such practices?

You will find the answer to this question in the continuation of this material.

With detailed information about the features of methodological and consulting support and support for new management technologies being introduced, incl. practitioners of proactive budgeting, you can find in the section of the site:

• "Catalog

Types and purpose of budgets

The reduction in error can be justified by data from the table below. So, let's look at the purpose and main types of budgets.

Budgeting functions

The budget performs the following functions:

1. Economic forecast. Basic issues regarding budget items are taken during strategic planning.
2. Budget as a basis for monitoring the company's activities. As the plans provided for in the project are implemented, it is necessary to carry out actual monitoring of their implementation. It is necessary to compare actual indicators with planned indicators.
3. Budget as the main means for project coordination. A budget is a plan for the production, purchase and sale of products.
4. Budget as a basis for achieving assigned tasks. When planning a budget, all decisions must be made in advance, before the project is implemented.

Project budget and cost estimate

It is interesting to note that a project budget is similar to the operating cost estimate for one business element of a company. The main difference here is that it traditionally covers it completely, that is, from beginning to completion. In turn, the budget of a business unit is formed annually or quarterly. For maximum effective control, it should be divided into two components: direct costs and indirect losses.

The first type of budget is a key management and control tool for project managers, as well as directors of functional departments that take part in it. This includes the costs (travel expenses, salaries, etc.) of everyone included in the program team. In this case, each of the subjects performs separate tasks.

It is worth remembering that when justifying cost items, the following points are taken into account:

• the cost of materials that are purchased;
• amount spent on production;
• the cost of deviations from normal technology use;
• the amount spent on putting the product into operation;
• cost of supplies;
• other costs.

In turn, direct costs should be presented as follows:

• in a broken down form - exactly according to the project structure down to the level of the tasks being performed;
• Include weekly expenses for employee salaries, materials (contracted or purchased), and others for each milestone project component and task;
• include overhead costs directly related to materials and labor;
• summarized according to the various tasks performed by the participating structures;
• provide management reserves (in other words, leave a certain reserve of cost and time just in case).

The budgeting system and its important components

There is also such a thing as a budgeting system. It is a set of streamlined functions aimed at increasing the efficiency of the company. The budgeting system allows you to achieve your goals in a shorter time. It is formed gradually and depends on the characteristics of the company.

Budgeting management includes clearly coordinated activities of different departments of the company, which is designed to improve economic performance and take the company to a new level.

This system provides many advantages, which are represented by the following features:

• Analysis of current activities allows you to formulate the direction of the company not only at the micro level, but also at the macro level. A set of problems is solved, including the internal structure of the company, as well as its position relative to other market participants;
• Based on a number of indicators for a specific period, it is possible to evaluate the activity of an enterprise at different levels, which helps to identify narrow areas that need improvement;
• Assessment of the work performed by managers of all departments (each indicator in the estimate characterizes the skill level of individual employees and allows them to coordinate their activities);
• Having low performance is an excellent reason to motivate employees. Formed specific tasks for individual items of expenses and income will help to quickly cope with problem areas;
• Improving mutual understanding between employees occupying different positions. Solving common problems together leads to team unity and corresponds to an accelerated process of achieving goals;
• Informing all departments (thanks to a well-functioning system, new information flows from higher levels to lower levels at high speed. And this, in turn, contributes to solving one big problem simultaneously at all levels);
• Training of managers (deepening into the internal processes of the company allows you to see the current situation in more detail, which means you can offer a more effective solution to the problem).

The importance of the budget process

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Project budgeting places significant pressure on both project managers and departments. The fact is that it puts forward the following alternative: if we stay within the budget, then we act effectively, but if we exceed it, the work is done poorly.

However, this requirement is often not applicable to actual project budgeting. The fact is that budgets are both formed and implemented under a certain pressure from a number of factors, both subjective and objective.

For example, a hired project manager is often forced to accept budgets that were developed and adopted without his participation, even if they seem unrealistic to him. Otherwise, the employee may be denied a contract. However, if he agrees to a budget that clearly does not correspond to the given deadlines, as well as the resources available, then as soon as the achievement of certain results requires expenditures above the planned funds, the employee is forced to explain this problem, despite the fact that initially the budget was set at an extremely low level.

It is worth remembering that project budgeting can be rational. In this case, the purpose of the budget is primarily to establish the true cost of the project to the firm. Therefore, if the person leading the project accepts a budget that significantly exceeds the 15-20% error acceptable for the cost justification stage (information from the table above), it is very likely that the situation will not be limited to explaining to senior management the reasons for this excess. In this case, the project manager will most likely lose his job.

Financial structure of the company. Financial Responsibility Centers

When setting up budgeting and management accounting, it is necessary to determine the financial structure of the company, that is, a set of businesses or other areas of financial responsibility (for income and expenses only for expenses for certain financial indicators) acting as objects of budgeting and management accounting.
However, the financial structure often differs from the legal structure of the organization, since the legal structure may not correspond to the tasks and goals of management accounting. When analyzing and choosing a company’s financial structure, it is important to determine:

1. What is the responsibility of a structural unit or group of structural units and their managers;
2. What benchmarks are set for them;
3. What types of budgets are developed in the company;
4. What principle of budget planning is applied in or “bottom up”).

As a rule, in the financial structure it is customary to distinguish various centers of financial responsibility: profit centers (for example, a sales department), profit and loss centers (for example, production departments), investment centers, etc.
Centers of financial responsibility can be individual structural divisions, groups of structural divisions, branches or subsidiaries of holding companies, regionally separate activities of multi-industry companies.

Financial responsibility centers are responsible for all financial results, that is, for all income and expenses, as well as for cash flow. As a rule, they have a complete budget scheme, that is, they compile all types of main budgets adopted in the company - BDR, BDDS and Forecast balance, but they can also compile separate operating budgets (purchasing budget, sales budget, etc.).

How to avoid this?

To avoid such a situation, M. Thomsett, an American scientist, suggests that managers create their own project budgets. At the same time, he points out a number of reasons for this behavior:

• You are responsible for reporting according to the future costs of the project and the ability to spend their budget. This will not be possible if you work with a pre-determined budget.
• As a project manager, you should know better than anyone else how much a particular project will cost. The budget you set is considered a monetary measurable goal. It should satisfy you according to the following parameters: provide an opportunity to measure the success of the project and be a way to measure the competence of the manager (that is, you).
• You must include some assumptions in the budget items. This is extremely important if future justification for specific expenditures comes into play. It is worth adding that the assumptions are compared with the possibilities for the current period, while possible complications are not taken into account. Only when you have the ability to compare at this level will the budget process function as intended.

What phases does the budget cycle include?

Planning and distribution of income and expenses is a separate stage in the activities of an enterprise, which is usually called the budget cycle. This process is repeated at the frequency accepted by the enterprise and is cyclical in nature.

Each new budgeting stage contains several phases. Their presence is due to a number of specific tasks that the company’s management sets for itself.

There are three main phases:

• Planning . At this stage, current indicators are studied, on the basis of which a plan for future implementation is drawn up. This is an important step, since the future activities of the company depend on it. If you miss something, correcting errors can be expensive. It is important to consider possible risks and ways to minimize them. A specific list of directions is developed that the company should follow in the next few months or years;
• Implementation . The stage includes a set of actions that contribute to the advancement of planned tasks. It is important to strictly follow the planned plan and make timely adjustments to actions. This will help reduce costs and achieve goals on time. The phase includes a set of actions by all divisions of the company that can in one way or another affect the result. The entire period of task implementation is divided into several small intervals, in which it is also appropriate to put appropriate plans. This will help to adjust indicators in a timely manner, understand their feasibility or eliminate the problem that has arisen;
• Completion . The results of the company's activities and the two previous stages are summed up. The indicators set as targets and those achieved are compared. If there is a significant difference between them, then the company was operating extremely inefficiently. Subject to compliance with the planned standards, goals are set for the next period, the implementation of which will contribute to the further prosperity of the company.

Creating, tracking and executing a financial plan

You need to know that project budgets are formed, monitored and executed separately from the financial plan of the units participating in the business and the company as a whole.

There are reasons for this:

• Projects do not tend to repeat themselves. Budgets of departments and divisions are formed annually. They are often reviewed every six months or more often. Projects come to an end immediately after their completion. The fact is that the implementation time of the program is not tied to the fiscal year. Budget revision is not advisable. The exception is cases when gross errors are discovered in the initial version or when there is a sudden change in the environment (it is in this environment that a specific project is being implemented).
• The manager has direct control over budget execution. It is worth noting that the financial plans of departments and divisions, as a rule, depend on the relationships that develop between several services: the execution department gives a cost limit to one or another department, based on information provided by another department; however, decisions about personnel and systems are made by top management. The project, on the contrary, uses the budget in accordance with two directions: the use of those resources that are available (achievements and personnel), they are already at the disposal and budget of the department, and the limited use of external resources that are attracted temporarily. Hiring an additional employee in any case results in fixed costs; An additional unit of personnel for a project will typically draw on forces already available in the service.
• The success of budget execution is directly related to the impeccable adherence to the project action plan, as well as the resource use schedule. It also depends on how well the manager has planned the implementation of each phase, as well as whether the employees participating in the project team adhere to the established schedule. If the implementation of a particular stage or work as a whole is delayed due to the need, for example, for human or time resources than was initially determined, this will somehow affect the budget in an unfavorable way, that is, in the form of an increase in the cost of executing the project work.

Such rules, at least in an ideal situation, should be used by managers of all functions of the company who have their own budget. It is worth knowing that each of them is responsible for not exceeding the budget level and, accordingly, overspending. However, in practice, only a minority of firms strictly follow this rule. On the other hand, few companies allow department directors to set the budget level that is actually needed for the department's project.

What is top-down and bottom-up budgeting?

There are two main models of budget planning: top-down and bottom-up budgeting.
In the first case (“top-down”), the company’s management determines the scope of financial budgets for the entire enterprise, and the local financial departments draw up their operating budgets so that the main budget for the enterprise as a whole is not exceeded.

When planning “from the bottom up”, budgets are first drawn up at the level of the Central Federal District, then, based on them, master budgets of the upper level are drawn up (BDR BDDS Forecast Balance). Which method to choose depends on the specific operating conditions of a given company and even individual types of business of the same company.

Tenders, negotiations and agreements

Next, it is advisable to consider the culmination stage of the project: the organization of tenders, special sites, as well as the conclusion of cooperation and partnership agreements.

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A tender should be understood as a competitive bidding, during which the selection of suppliers of commercial products and services is carried out. Municipal and state customers carry out their activities within the framework of 44-FZ “On the contract system in the field of procurement of goods, works, services for the provision of government. and municipal needs."

State corporations, organizations implementing regulated types of activities, natural monopolies operate according to Law 223-FZ “On the procurement of goods, works, services by certain types of legal entities.” persons" (for example, construction tenders).

Special sites

Commercial structures operate within the framework of civil legislation current in the Russian Federation. They post information regarding their plans on tender sites. Both individuals and legal entities that fully comply with the requirements of the customer and Russian legislation have the right to participate in procurement.

There are different tenders: open (that is, for all participants), for example, open competition, request for quotations, electronic auction, request for proposals; closed (that is, for a limited number of persons), for example, limited auctions and competitions. Purchases can be made both electronically and in paper form.

It must be borne in mind that such an event requires serious preparation, in particular legal, financial and technical. This is necessary in order to ensure the application and execution of the contract. Therefore, managers should initially set up their staff for teamwork, because the final result depends on the coherence of the operations carried out by employees.

Consolidation goals. Intragroup turnover

Consolidation of financial statements is the process of combining and synchronizing the indicators of the financial statements of a group of enterprises in order to present them to external users in a single reporting package of the holding (parent) enterprise.
The need to prepare consolidated financial statements is dictated by the expediency of providing external reporting users with comprehensive information about the financial condition and performance of consolidated enterprises (holding).

Very often, consolidated reporting is perceived as consolidated reporting, the data of which is formed by adding indicators of the same name. However, the consolidation methodology is determined not by arithmetic operations, but by the economic essence of the business. Consolidation of companies through mergers and acquisitions, organization of regional networks, attraction of investments and access to stock markets - all require transparency. Consolidated reporting plays the role of an information base for making management decisions in companies with a complex structure, combining several legal entities and sometimes with different areas of activity.

The entire procedure for consolidating financial statements can be divided into two large stages:

1. consolidation (consolidation) of reporting data of all enterprises included in the group;

2. exclusion from the summary indicators of quantities related to internal operations (intragroup turnover), which, in particular, include (these procedures are called elimination):

a. income, expenses and profits/losses from mutual transactions between group enterprises;

b. settlement transactions between group enterprises and the balance of such settlements;

c. mutual loans and borrowings.

Thus, the purpose of consolidation is to combine management financial reporting data for a group of enterprises into a single report with the exception of intra-group turnover for reporting to external users.

Main stages of the tender implementation

Schematically, participation in this kind of event can be represented as follows: Market analysis → Selecting and further obtaining an electronic signature → Registration → Search for a tender site → Preparation of financial security → Opening a special account (this is necessary for procurement participants in accordance with 44-FZ) → Preparation and subsequent submission of an application for participation in the procurement → Direct participation in the tender. The final stage, of course, is getting the result.

Let's consider the main stage of the presented list: participation, for example, in a construction tender. This will be an electronic auction under 44-FZ. At a predetermined deadline, the customer begins to consider the participants’ applications. When your application is considered accepted for participation in the auction, you should calculate the minimum price level for which you are willing to supply a construction product or provide relevant services, and organize work within the framework of this tender.

The electronic auction is held in real time. Thus, within ten minutes after submitting the last price proposal, the participant has the right to make his own proposal online according to the “auction step”: from 0.5 to 5% of the NMCC. In other words, the step that can be carried out at a time should not exceed 5% of the initial maximum price of the partnership (cooperation) agreement specified in the notice.

In accordance with the results of the auction, a protocol is drawn up. After the auction is considered completed, the stage of consideration of additional parts of applications begins.