Construction Code 2026: Key Changes for Businesses - FCHAIN

Construction Code 2026: Key Changes for Businesses

On July 1, 2026, the new Construction Code of the Republic of Kazakhstan will come into force. It was signed by the President of Kazakhstan on January 9, 2026. One of the most significant changes for construction companies is the new approach to accounting and write-off of construction and installation works (CIW) costs.

These changes will affect accountants, estimators, economists, and managers of contracting organizations, as the long-standing practice of using state estimate standards for writing off materials and costs will officially cease.

 

What Has Changed?

According to Paragraph 5 of Article 44 “Pricing in Construction” of the new Construction Code, estimate regulatory documents used to determine the estimated project cost shall not be applied during the execution of construction contracts.

The Ministry of Industry and Construction of the Republic of Kazakhstan has provided additional clarification on the practical application of this provision. The estimated project cost now serves exclusively as the customer’s estimate and is used for:

• ✓ investment planning;
• ✓ determining the estimated construction cost;
• ✓ establishing project financing limits;
• ✓ analyzing project economic efficiency.

At the same time, the estimated cost can no longer be used by contractors as a basis for accounting and writing off actual expenses.

 

How Should Materials and Costs Be Written Off Now?

Following the implementation of the Code, construction companies must revise their internal accounting procedures. Contractors are now required to use:

1. Internal Material Consumption Standards

For each type of construction and installation work, companies must develop and approve their own consumption standards for:

1. construction materials;
2. products and structures;
3. equipment;
4. auxiliary resources.

These standards must be properly documented and approved through internal regulations.

2. Actual Purchase Prices

The cost of materials must be reflected at actual prices recorded in the company’s accounting system, based on:

1. supplier invoices;
2. procurement contracts;
3. actual acquisition cost.

The use of estimated prices for accounting transactions is no longer permitted.

 

What Does This Mean for Contractors?

The new rules significantly increase the requirements for internal accounting systems in construction companies. Contractors will need to:

1. update accounting policies;
2. develop internal material consumption standards;
3. organize detailed production accounting;
4. ensure documentary evidence of actual costs;
5. strengthen control over deviations between planned and actual expenses.

Companies that fail to adapt their accounting processes in a timely manner may face risks during tax audits and inspections.

 

The Role of Estimate Standards After July 1, 2026

State estimate standards will remain relevant; however, their role is changing.

They will now serve as:

1. a tool for calculating project investment costs;
2. a benchmark for economic efficiency analysis;
3. a basis for management decision-making.

They should no longer be used for accounting purposes or material write-offs.

 

What Should Be Done Now?

Before the Code comes into force, construction companies are advised to:

✓ audit their current cost accounting system;

✓ review their accounting policies;

✓ develop internal material consumption standards;

✓ implement control over the actual cost of construction and installation works;

✓ prepare accounting and production departments for the new legislative requirements.

 

FChain Accounting and Tax Services for Construction Companies

Changes in construction legislation require businesses not only to revise internal processes but also to receive professional accounting and tax support.

FChain specialists provide comprehensive services for construction companies, including:

• bookkeeping services;
• tax support for construction projects;
• preparation of internal policies and regulations;
• HR recordkeeping services;
• consultations on the application of the new Construction Code of the Republic of Kazakhstan;
• monthly legal support for construction companies.

We support construction companies in building transparent cost accounting systems, minimizing tax risks, and ensuring full compliance with the legislation of the Republic of Kazakhstan.

FChain is your reliable partner in accounting, tax, HR andd legal support for the construction industry.

 

Desk Audit of Imports from EAEU Member States

Prepared by: Moldir Mukhtar

Business Development Specialist

FChain Kazakhstan

   📩 almaty@f-chain.com
📱 WhatsApp: +7 771 214 1820