Govt aims to digitise construction oversight, expand SME access to tenders

Georgia’s government aims to launch a pilot system for the digital supervision of construction projects by the end of 2026, while new public procurement rules are being introduced to give small and medium-sized businesses greater access to state tenders.

Guram Dumbadze, head of the government administration’s Department of Efficiency, said on Thursday several elements of the procurement reform were already being introduced, including electronic catalogues, framework agreements and new rules on subcontractors.

The changes are intended to modernise public procurement and make it easier for smaller companies to compete with larger businesses, Dumbadze said.

Under amendments to Georgia’s public procurement law adopted in May, framework agreements and electronic catalogues have been added as formal procurement instruments. Framework agreements can generally run for up to four years and may involve one or several economic operators.

An electronic catalogue allows bidders to submit offers electronically in a format defined by the contracting authority. Dumbadze said it could be particularly useful for procurements involving large numbers of goods that an organisation may need throughout the year.

New rules on subcontractors came into force in September. They allow economic operators, under specified conditions, to rely on the experience and qualifications of subcontractors when meeting procurement requirements. The State Procurement Agency said the changes were intended to increase the direct participation of small and medium-sized businesses in public procurement and strengthen competition.

Dumbadze noted the change could be particularly important in the construction sector.

Under the new approach, a company that does not have sufficient experience to meet a tender requirement can involve a subcontractor whose relevant experience helps satisfy the qualification criteria. For example, a company with GEL 2m in qualifying experience could potentially combine it with a subcontractor's GEL 3m experience to meet a GEL 5m requirement, provided the tender conditions are satisfied.

“This gives small and medium-sized businesses a significant opportunity to compete with larger companies,” Dumbadze said.

The government is also preparing a system to digitise construction supervision, with a pilot expected to be launched before the end of the year.

Dumbadze said the current supervision process is largely carried out manually and that the planned system would allow construction progress to be monitored digitally, including on a daily basis.

The system is intended to cover supervision of goods, services and construction works and make information publicly accessible. According to Dumbadze, this would allow both contracting authorities and construction companies to monitor progress and compliance with quality requirements.

He said the government would develop the software itself and that the system would not create additional costs for businesses. Further details are expected to be announced by the end of 2026.

Dumbadze also said the procurement reforms were intended to put greater emphasis on quality requirements in construction tenders before price is considered.

He referred to Government Resolution No. 281, under which contracting authorities are required to specify the quality criteria necessary for construction projects.

These can cover materials and technical specifications, including paint, laminate, finishing materials and concrete grades.

According to Dumbadze, bidders must first satisfy the relevant quality requirements before their prices become decisive in selecting a winner.

“First, we check whether the quality requirements are met. Only afterwards does the price become important,” he said.