Aigozel S. Bailieva. The study of legislative and institutional barriers to the development of life cycle contracts in the road sector

UDK: 351.811

Aigozel S. Bailieva - Russian Road Scientific-Research Institute (FAI “ROSDORNII”)

Abstract. The issues of developing an object as a result of the work and its subsequent maintenance with subsequent recycling (if necessary) have always been an important area in the transport industry. The supreme bodies of state power of the Russian Federation are constantly in search of new tools to improve the quality and reduce the total cost of work that can ensure the achievement of goals and objectives in the most important areas of development of the state. One of the ways to solve this problem is to implement a life cycle contract. The practice of introducing life cycle contracts is becoming increasingly relevant, taking into account the specifics of transport industry development in the Russian Federation and the problems arising during the operation of roads and artificial road structures caused by shortcomings in the construction and reconstruction of these facilities. Taking responsibility for all elements of the cost of developing a facility and its further maintenance, a single contractor reduces operational risks and the amount of work. A long-term contract with fixed payments simplifies the planning of the exploitation budget by a customer, and a contractor replaces investments and fixed costs with variable costs, which reduces his risks. At the same time, an analysis of law enforcement practice available in some sources has shown a low level of readiness of subjects to sign such contracts due to the insufficient level of legislative development, which requires a more comprehensive and rational approach to this issue. The current paper has presented the estimation of the main institutional and legislative obstacles, barriers that prevent signing and executing life cycle contracts in the transport industry. There have been made proposals to eliminate gaps in the law.

Keywords: a life cycle contract; state and municipal purchases; road economy; “second optimization law”; a life cycle contract cost.


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