Features of the evolution of legislation in Ukraine led to the fact that the organizer of the auction can be difficult to distinguish between work with other types of the subject of bidding. However, the exact distinction is very important here, since the same estimate can be either sub-threshold or above-threshold.

What is "Works"

In total there are three main groups of items of purchase in commercial tenders and state trading:

Products. This category includes all types of products, equipment, software, technologies, energy carriers, raw materials, devices.
Services. This term means any actions in relation to a third party (organizer), aimed at meeting the needs of an intangible nature. Examples are logistics, insurance, mobile communications, massage, expert assessments and equipment testing for compliance with safety standards, recruiting.
Works. This is an activity during which employees create or modify any material benefits. Examples are construction, production of project documentation and software, organization of electrical wiring, local network, plumbing, and other communications, replacement of double-glazed windows.

The law gives them a concise definition - all kinds of items of purchase that are neither goods nor services. However, such a formulation does not provide an exhaustive understanding of the essence of this concept.

What Distinguishes the Purchase of Works

If it is easy to distinguish work from goods, then there is often some confusion with the services. You can understand the difference in the example of building repair:

Minor cosmetic or routine repair without decommissioning. In this case, it is considered to be a repair service, which does not lead to an increase in the book value of the building.
Overhaul with decommissioning and replacement of important (for example, bearing) structural elements. Such cost items are already considered work and lead to an increase in the value of the object.

Sometimes the line separating two types of the subject of purchase becomes too thin, and the definition of important structural elements is carried out only by subjective criteria. In such cases, the customer can have ample opportunity to determine the type of procedure within the law.

Threshold Budget Size

Works differ significantly from services and goods not only in the form and content of the order, but also in the minimum budget, from which the Law obliges the state organizer to hold a tender in the Prozoro system – not from 200,000, but from 1,500,000 hryvnias. And in the event that the organizer of the purchase is a monopolist enterprise – the threshold amount will rise to UAH 5,000,000.

Document Flow

Another important difference between works and services is the documentation, which includes a certificate of completion, indicating the estimated calculation and payment details. In most cases, the presence of such a document immediately excludes the classification of the subject of purchase as a service.

Features Appeals

The cost of appealing the conditions or results of the procurement to the Antimonopoly Committee of Ukraine is different. If in the case of services and goods you need to pay UAH 5,000 for filing a complaint, then in the procurement of works this amount is UAH 15,000.

You can get acquainted with examples of the correct appeal of work purchases and relevant decisions of the Antimonopoly Committee of Ukraine in the “Complaints” section of the personal account of a bidder on the electronic trading platform SmartTender.biz.