Barriers are reducing

01.09.2017

Russian Public Opinion Research Center (‘VCIOM’) has polled about 1000 heads of construction companies operating in Moscow in order to know their opinion about the main reforms in reducing administrative barriers program that is implementing in Moscow. In comparison with similar research conducted year ago, there are increasing of information awareness of changings in provision of services and passing the procedures. Most builders believe that it will allow to reduce the cost and time limits of construction as well as influence positively on a quality and safety of the construction works. Moreover, WCIOM pointed out five main reasons, which hinder the development of the sector. There are no administrative barriers among these reasons.

DEVELOPERS SUPPORTED THE REFORM

Vast majority of Moscow developers believe that reducing administrative barriers reform will influence positively on construction sector. WCIOM has received such results during the poll of thousand heads of construction companies operating in Moscow. According to Deputy Mayor for Urban Policy and Construction Marat Khusnullin, a work to reduce administrative barriers is particularly important in connection with the start of renovation program, which envisages the most rapid paces of housing construction in Moscow for last decades. This will allow to build houses and social infrastructure facilities more quickly and without loss in quality.

“The heads of construction companies are agree with the head of the Construction Complex. “About 80% respondents consider these reforms to result into reducing expenditures and cost of the construction,” – VCIOM General Director, Valery Fyodorov. According to his words, 49,2% respondents  consider, that administrative reforms improve safety of the facilities, and 44,6% think that it will improve the quiality of services. 76,9% representatives of construction companies believe in reducing the time limits of construction due to transferring services into e-format and easing of executing permit documents. Last year during the similar research only 62% developers were sure in time limits of construction works reduction, and 58% told about cutting of construction prime cost. In compare to last-year research, the percent of people informed about these reforms rose. Assessments of gained effect also has increasingly risen. In particular, WCIOM has explored views of builders on eight issues. There were considered such reforms as transferring state service into e-format, inclusion information on utility systems and technical specifications of connection to utility systems into development plan of land plot (‘GPZU’), cadastral registration of constructed facility, reduction of registration time limits in Rosreestr (‘Federal Agency for State Registration, Cadastre, and Cartography’), adoption of Land use and development rules (‘PZZ’), transferring Moscow geodesic fund into e-format, creation of Consolidated plan of underground utilities (utility systems and structures). More than half of construction specialists taking part in the poll noted a positive effect of each reform. The most positive assessments relate to transferring state services in construction sector into e-format (76,2% respondents noted positive effect in the work process. It is 30% more than a year earlier).

Minimal positive assessment of conducted reforms amounted to 54,8% (cadastral registration). It is also a high indicator. Developers learn about Moscow government activity regarding administrative barriers reduction from: colleagues (almost 40%), on state authorities websites (28%); via Mass media (25,4%). Meanwhile, there are 2 successful novelties designed to inform professional community about conducting reforms. These are “Just build” web portal and special “Error correction” training seminars which Department of urban planning policy together with Agency for strategic initiatives hold on a regular basis. Those heads of construction companies who attend seminars and use web portal, highly appreciate its efficiency – at 70-80% level.

WHAT HINDERS CONSTRUCTION SECTOR TO DEVELOP

According to WCIOM, builders are no longer perceive administrative barriers as the main problem in doing business. As Valery Fyodorov says, almost 30% representatives of professional community are not satisfied with cornering the construction services market and small participants have little possibilities. 28% worry about economic situation; 26,3% emphasized that unfair competition hinder the market; 25,4% noticed the lack of orders and 19,5% are worried about increasing of prime cost. Administrative barriers did not enter into top of reasons hindering construction sector development. However, only 5% respondents pointed this reason last year.

To date, major problems for developers during the projects implementing are issues regarding activity of resource providers. Submitting the same documents to Moscow United Energy Company (‘MUEC’) and to cadaster; duplication the documents in approval external utility systems; re-approval with asset owners of utility systems etc. According to Sergey Levkin, Head of the Department of the Urban Planning Policy of Moscow, reforms are being continued.

He explained, that grid organizations are not governmental, their activity is not transparent, and there are no unified regulation of service provision. Therefore, Moscow authorities reacting to applications of developers and in order to further reduction of administrative barriers set the task to establish order in this area. Government of the Russian Federation together with Ministry of Construction, Housing and Utilities of the Russian Federation (‘Minstroy’) has supported this initiative. At present, a map road to resolve this problem is elaborated. “We plan to finish major works in 2017-2018, to make procedures on technical connection clear and unified and investors will obtain one more instrument”, – informed Levkin.

According to him for the convenience of the developers number of services that allows to get answer for key questions about the interaction with authorities is developed. For instances, “Calculator of procedures”, which is available on “Building is easy” website and presented last year during Moscow Urban Forum. “This tool is an informational module that allows anyone (individual or developer) to get information at the beginning of construction about the time that all procedures are going to take, how much will it cost and get information about what could be built in particular land plot” – told Sergey Levkin.

He also stressed out that in personal account of developer on mos.ru the “Knowledge base” is available. It is a verified answer for key questions in 6 areas of work of construction complex, including renovation of housing. Today the base consists of approximately 600 answers and constantly grows. Another service is “Guide on procedures” on “Building is easy” website will help to understand all state services that are available online: which documents are required, what are terms of procedure passage, where to apply.

NETWORKS ARE INCLUDED INTO GPZU

The list of services will widen in 2017. The existing services will be changed. Main changes will be in GPZU issuance. According to the deputy Chairman of Moskomarrchitektura Andrey Sukhov it is caused by changes in Urban construction code of Russian Federation,  new form of GPZU that is developed by Construction Ministry and by acceptance of new PZZ in Moscow. Previously application for GPZU could be made in paper or online but starting from the 1st of July 2017 the service is exclusively available online. Issued GPZU could be get both online and in paper. Moreover GPZU is no longer a document that plans the territory, now it is the statement from sources that are established by the law, including PZZ, because it shows exactly the same parameters that are stated.

From the 1st of July GPZU includes the information about technical connection to networks. Two options are available for it: the app that includes information about engeneering networks inside the land plot and about previously issued technical conditions for water supply and sewage. Now the same information about other resource companies: PAO “MOESK”, AO “OEK”, PAO “MOEK”, AO “Mosgaz”, AO “Mosvodokanal”, GUP MO “Mosoblgaz (in terms of facilities in adjacent territories) is included in the document. “When you know where networks are you understand which land plot is free of burdening, where you can build and where construction will cause the need for new communication and extra cost”, – stressed out Andrey Sukhov. According to development director of GK “Granel” Andey Csvet it is often happens that developer has to build kilometers of new networks, but the existing connection point that nobody told about is right there”.

The president of PSN Group Maxim Gasiev told that today the procedure of connection of facility to engineering networks takes long time and the difficulty is individual for every project. The information about connection to all engineering networks in GPZU will both help in the stage for buying the land for construction and during the construction. “It will help both in price and terms. We will have a chance to plan in advance, forecast the expenses and will save time”, – told Maxim Gasiev.

Last year Mosgosarchitektura formed the Consolidated plan of underground utilities (utility systems and structures). This is a tool that is formed on the base of data about agreed project documentation, archive information and control geodesic filming of Mosgorgeotrest. For creation of Consolidated plan more than 300 000 documents that describes the underground area of Moscow starting from 1944 were digitalized. Today Mosgosarchitektura creates a regulation for provision of information from this database.

According to Marat Khusnullin the conclusion on compliance of project documentation to Consolidated plans of underground utilities (utility systems and structures) will be exclusively available online starting from 20th of August. “Today this state service is both available online and in paper. After its transfer to e-format the procedure of application, processing of application and issuance of conclusion will be simplified”, – told the Head of Construction complex. The conclusion from  GUP “Mosgorgeotrest” will be issued in 10 working days.

Source: “Vse o mire stroitelstva” magazine