Ukraine’s defence industry to adopt “Design and Build” expansion model: what this means

The Cabinet of Ministers of Ukraine has approved a resolution introducing an experimental project in the defence-industrial sector, launching the “Design and Build” principle within the industry. It will allow faster duplication of production capacities at one of the country’s key defence enterprises, according to the Ministry of Defence.

Current legislation requires that every stage of construction proceed sequentially, from design to commissioning. Each subsequent phase cannot begin until the previous one is completed, which significantly slows down the development of new production facilities. The new approach simplifies the construction process: under the updated rules, design and construction within the experiment can proceed in parallel, rather than following the traditional sequential stages.

The text of the document has not yet been published, but it is already known that the participating enterprise will be permitted to conclude contracts for water, gas, heat and electricity supplies without a declaration of readiness for operation or a certificate. This will make it possible to launch production more quickly and ensure uninterrupted supplies of defence products to state customers.

Once the mechanism is tested, it is expected to be extended to other areas of the domestic defence industry.

“Design and Build” is a European Design-build practice that involves tendering for complete turnkey projects. In Ukraine, the initiative was announced by Prime Minister Yuliia Svyrydenko in July this year. The programme aims to accelerate the construction or restoration of housing, hospitals and other infrastructure facilities.