Self-regulating organizations in construction industry

article 23/02/2022

Self-regulating organizations
- non-profit associations of commercial companies engaged in a particular industry or professional activity.

In the construction industry
there are three types of associations in the following spheres: construction, engineering surveys and architectural-and-construction design.
Lists of works are defined for each group. The performance of these works requires membership in SRO. These lists include types of activities that affect the safety of capital construction projects and are approved by the Order of the Ministry of Regional Development of the Russian Federation (functions transferred to the Ministry of Construction, Housing and Utilities of the Russian Federation in 2014) No. 624 dated December 30, 2010 in accordance with paragraph 4 of Article 55.8 of the Town Planning Code of the Russian Federation.

Membership in SRO is not required
in such cases where the amount of obligations under each of the construction contracts does not exceed 3 million RUB. This is established by Part 2.1 of Article 52 of the Town Planning Code of the Russian Federation.

SRO permit
Currently, function of such document can be performed by an extract from the register of SRO members, which confirms the fact of membership in a self-regulating organization and gives the right to conduct works included in the established list. The extract displays company name, types of conducted work, established restrictions on contractual obligations and the right to conclude contracts on a competitive basis.
Current legislation in the self-regulation field obliges both large companies and individual entrepreneurs of the construction industry to join SRO.

Rights of SRO members
Joining SRO gives entities the right to:
- carry out construction, design and survey work;
- protect professional interests;
- participate in tenders and other events, including public;
- timely receipt of information about news and changes related to the construction industry.

Membership in only one SRO
Companies has the right to become a member of one or more self-regulating organizations, but in different areas of work and only in their region (federal subject of the Russian Federation) of activity. This rule does not apply to design and survey organizations. They have right to become a member of any SRO in Russia, without territorial restrictions.
Joining several SROs in the same field of activity is prohibited, for example, joining several SROs in the construction field.

Responsibility for work without SRO membership
In cases when an activity of a construction organization is related to the performance of work that requires SRO membership, responsibility for work without a corresponding permit is provided.
In cases when work performance affects the safety of a facility, administrative fines in amount of 50 thousand RUB are applied.
Criminal liability applies to managers who have conducted works that lead to emergencies and caused harm to people's lives or health.
In cases when facts of construction work without SRO membership are repeatedly revealed, the court may decide to liquidate such legal entity.

Compensation Fund
consists of contributions from SRO members. The more contributions, the larger the compensation fund. Within the framework of a formed fund, SRO is responsible for losses that members of SRO could not compensate. Contributions to compensation funds are regulated by the law, this way the amount is the same for all self-regulating organizations. In addition to contributions, SROs independently determine size of entrance, membership and insurance fees. Funds received are used to ensure operation of SRO apparatus and insurance of its obligations.

Organizational conditions for joining SRO
Legal entity that meets all the requirements set out in the Town Planning Code of the Russian Federation can join SRO. The main ones are:
- at least two specialists present in the company's staff, who are included in the National Register of Specialists (NRS);
- formation of a package of introductory papers corresponding to all the necessary rules.
The National Register of Specialists is a public database containing data on specialists with relevant professional education and work experience that give the right to conduct activities in the field of construction, design and survey.

Joining SRO
Minimum package of papers for joining SRO:
- Application for membership in SRO;
- A questionnaire certified by the seal and signature of CEO;
- Decision on the establishment of a company or a protocol of a general meeting of shareholders;
- A copy of article of association.

Validity of membership in SRO
Membership in SRO is indefinite. Once a year, SRO carries out an inspection of each of its members for compliance with SRO regulations and requirements of the law, according to results of which SRO extends a membership of an organization.
Termination of membership occurs in the following cases:
- voluntary withdrawal of a company from membership in SRO;
- exclusion of a company from the list of members due to violation of legal requirements and regulations of SRO.

TOP 10 SROs in the construction industry by assets
Table 1. Net asset value, total assets, Globas Solvency Index of SRO in construction industry (TOP 10)

 
Name, INN, region Net asset value, million RUB. Total assets, million RUB. Globas Solvency Index
2018 2029 2020 2018 2029 2020
1 2 3 4 5 6 7 8
CONSTRUCTION INDUSTRY ASSOCIATION
INN 7811290215 Moscow
5 439 down5 416 down4 989 7 850 down7 796 down5 076 387 Weak
NONPROFIT PARTNERSHIP ASSOCIATION OF CONSTRUCTION GENERAL CONTRACTORS
INN 7704275614 Moscow
1 889 up2 406 up2 710 1 976 up2 503 up2 800 354 Satisfactory
ASSOCIATION OF DESIGNERS STROYOBEDINENIE
INN 7811154692 Leningrad region
2 541 down2 305 up2 349 2 541 up3 296 down2 721 290 Medium
ASSOCIATION SELF-REGULATING ORGANIZATION COMMONWEALTH OF BUILDERS OF THE REPUBLIC OF TATARSTAN
INN 1655068065 Tatarstan Republic
2 266 up2 516 up2 710 2 273 up2 523 up2 714 303 Adequate
SELF-REGULATING ORGANIZATION ASSOCIATION OF BUILDERS OF ST. PETERSBURG
INN 7838029642 Saint Petersburg
2 098 up2 377 up2 637 2 102 up2 378 up2 643 294 Medium
SELF-REGULATING ORGANIZATION ASSOCIATION OF CONSTRUCTION ORGANIZATIONS SUPPORTING ORGANIZATIONS OF THE CONSTRUCTION INDUSTRY
INN 7701054053 Moscow
1 564 up1 929 up2 184 1 593 up1 966 up2 208 291 Medium
SELF-REGULATING ORGANIZATION UNION OF BUILDERS OF UGRA
INN 8601036373 Khanti-Mansi Autonomous Region - Yugra
1 559 up1 853 up2 081 1 565 up1 860 up2 087 290 Medium
SELF-REGULATING ORGANIZATION INTERREGIONAL UNION OF CONSTRUCTION ORGANIZATIONS ASSOCIATION OBORONSTROY
INN 7721278125 Moscow
1 953 up1 953 up1 953 2 069 up2 069 up2 069 362 Adequate
ASSOCIATION FOR THE PROMOTION OF RESTORATION AND REVIVAL OF THE NATIONAL ARCHITECTURAL HERITAGE - ARCHITECTURAL HERITAGE
INN 7724297990 Moscow
830 up1 484 up1 814 1 138 up1 568 up1 892 300 Adequate
UNION SELF-REGULATING ORGANIZATION OF BUILDERS OF THE TYUMEN REGION
INN 7203208906 Tyumen region
1 323 up1 564 up1 790 1 354 up1 595 up1 808 320 Adequate
TOP 10 average value 2 146 up2 380 up2 522 2 446 up2 755 down2 602  
TOP 100 average value 792 up878 up968 858 up965 up1 015  

вверх indicator improvement for the previous period, вниз indicator deterioration for the previous period