Collective complaint of MDPR of the Ministry of Defense resolved

Complainee: The Main Department of Property and Resources of the Ministry of Defense of Ukraine (MDPR of the Ministry of Defense)
Complaint in brief: The Council received a collective complaint from 11 contractors building barracks, canteens and dormitories for servicemen by order of the Ministry of Defense.
The contractors complained that against the background of the transfer of powers of former territorial housing and maintenance departments (THMD) to a newly established structural subdivision – MDPR of the Ministry of Defense, their rights arising from respective agreements were not respected. In particular, the complainants reported on a lack of timely funding for facilities construction, as a result of which the buildings remained unfinished. Contractors also complained about the lack of proper communication on the part of the customer, due to which it was impossible to timely sign construction related documents, as well as to promptly resolve working issues (regarding protection of unfinished buildings, their heating in winter, etc.).
Actions taken: The Council approached the MDPR of the Ministry of Defense and initiated a discussion of issues raised in the complaint. At the beginning of February 2021, a series of multilateral meetings with the MDPR officials, including the Head of the MDPR, and representatives of contractors took place in the MDPR of the Ministry of Defense office.  The Council’s investigators were also invited to the first one of these meetings. During the meeting, MDPR specialists provided detailed explanations on all problematic issues raised by concerned contractors. In particular, they explained that temporary disruptions in communication with contractors were a forced consequence of the transfer of cases from former THMDs to the MDPR. Contractors were informed on prospects, timing and amounts of payment of funds for construction of facilities. Issues related to prompt signing of certain documents related to construction were agreed. MDPR contact persons responsible for further cooperation with contractors on specific objects were appointed.
Result achieved: In mid-March 2021, the complainants’ representative confirmed to the Council that normal working communication with the customer had been restored, additional agreements with the complainants had been signed, and complainants had resumed construction works at some objects. The case was successfully closed.