The new cost compositions allow the development and revision of industry indexes for public works.

On April 26, in Brasília, FGV’s Brazilian Institute of Economics (IBRE) and the National Transport Infrastructure Department (DNIT) launched the new SICRO – Referential Construction Costs System, a pioneer project to develop and implement a referential costs model with nationwide coverage. The new cost compositions provided by SICRO allow the development and revision of industry indexes for public works, enabling a closer approximation of reference prices in service provision, ultimately mitigating potential distortions between prices and allowing greater transparency and savings – key concepts in public works procurement and monitoring by surveillance agencies.

The development and revision of industry indexes tends to an important concept in public service procurement, since the provision of indicators for contract adjustments represents not only direct gains in contract management, but also a significant risk reduction for all agents involved.

The new unit cost compositions for SICRO’s public works offer state-of-the-art equipment and material technologies, cutting-edge methodologies to calculate overall labor costs and applying innovations related to Work Sites and Standard Monitoring, Rain and Traffic Interference Factors, Remuneration of Equipment Capital, among other extremely relevant items.

The country’s current stage requires increasingly more transparency and clarity from public officials in their actions. Thus, control and surveillance agencies have shown clear signs regarding adjustments in the modus operandi of public administration. The increased transparency with the new SICRO will lay down the groundwork required to attract private investment and enable transparent public investment in infrastructure in the country.  In this sense, DNIT’s initiative to develop the new SICRO, with technical support from IBRE, is aligned to the current Brazilian political-institutional scenario.

The new SICRO launch event featured DNIT General Director, Valter Casimiro Silveira; IBRE director, Luiz Guilherme Schymura; Road Infrastructure Director, Luiz Antonio Ehret Garcia; Waterway Infrastructure Director, Erick Moura de Medeiros; Special Secretary of the Partnerships and Investments Program, Tarcísio Gomes de Freitas; DER Director in Rio Grande do Norte, General Jorge Ernesto Fraxe; and the General Coordinator of Transport Infrastructure Courses, Luiz Heleno Albuquerque Filho, among other officials.

Photo Credit: Paulo Negreiros/DNIT

FGV News migrated to FGV’s Portal, in May 2017.
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