Uzbekistan Sets Unified Rules for Contractors’ Overhead Costs

Tashkent, Uzbekistan (UzDaily.uz) — From 1 January 2027, overhead costs for contractors working on state-funded projects will be set at 20% of the estimated cost of direct expenses, while the required profit margin will be 7%.

The procedure was established by Government Resolution No. 583, dated 21 October 2026.

The resolution approves regulations governing the adjustment of contractors’ overhead costs when calculating current contract prices for construction projects, the Chamber of Commerce and Industry of Uzbekistan said.

The new rules apply to construction, reconstruction and repair projects financed through the budget system. They also cover business entities in which the state holds at least a 50% stake in the authorised capital.

The rules will be applied when preparing design and estimate documentation and determining the initial cost of projects.

Labour costs in the construction sector will be calculated at 5% of the national minimum wage per person-hour, including social tax. Contractors’ other production costs will amount to 2.5% of direct costs, rising to 5% for projects in mountainous, desert and hard-to-access areas.

For contracts awarded directly, the calculation, verification and approval of contractors’ overhead costs will be conducted electronically through the national Shafaff Qurilish information system.

For contractors that have been operating for no more than one calendar year and have not submitted balance-sheet data or financial statements, overhead costs will be set at 10% of the estimated cost, while the required profit margin will remain 7%.

Funding for other production costs will be allocated based on the actual volume and value of work completed.

For contracts awarded through tenders, the amount of contractors’ overhead costs cannot be changed during the contract period. An exception applies when tax legislation changes.

Information on overhead costs by contractor will be published in the Shafaff Qurilish system.