Paper difficulties: how many administrative procedures are required to build a house

03.08.2017

The buyers of the housing in brand new facility are interested in three things: reliability of developer, price of the apartment, construction terms. Other aspects of the process are not relevant for them. Meanwhile, developer has to pass 60 or more administrative procedures to build a house in Moscow. Experts told “RIA-Nedvizhimost” how much construction of the house costs and how to connect it to electricity, gas and water networks.

Hurdle race

According to the head of technologies and construction process department of MGSU, the honored constructer Azarii Lapidius, first thing that developers are facing is the need for land rights- either rent or purchase. “Then the geodesic, ecological and geodesic researches are conducted. Some extra researches may be required. For instance if the land plot is situated in airport area then the obstacles for planes are taken into account”, – he says.

After the end of researches developers order project documentation that is later sent to the expertise. Then the positive result of expertise gives an opportunity to apply for construction permit.

To get this document, says Lapidus, the information from resource provider about the opportunity for house connection to water sewage, water supply and electricity is required.

He also stresses out that regions may have extra administrative barriers. Expert gives an example of Siberia, where developer has to include the project of external networks into application.

When the construction permit is issued the architectural construction supervision stars to control it.

The construction cycle in Moscow- form the idea to build a house to construction permit takes about 6 months, says the head of optimization and supervision of procedures in urban construction department Rafael Lugansky. The whole cycle of housing construction till the putting the house into operation lasts about three years according to the speaker’s evaluation .

 

Bureaucracy is decreasing

 

As the general director of Tekta Group, Roman Sychev emphasizes the construction sphere in Russia still remains difficult from the point of view of administrative barriers. In recent years, the work of the authorities to reduce bureaucratic procedures is becoming more noticeable.

Back in 2014, the Moscow construction complex held a lot of work – a kind of audit, which resulted in the approval of an exhaustive list of procedures in the construction of residential facilities, Luganskiy recalls.

“There are about 140 procedures in the construction industry in the capital today. But this does not mean that all 140 have to be passed. The actual number of procedures for a particular developer depends on how the land legal relations will be formalized; in what part of the city the object will be built; whether there are security zones of objects of cultural significance. An average for the construction of an apartment building requires about 50-60 procedures, with most of them, about 60%, associated with the connection of the object under construction to the networks of engineering and technical support”- the official said.

He also specifies that of the 140 administrative procedures for developers in Moscow, federal legislation set about 120-130, while the rest – it is already the requirements of the city, primarily related to the preservation of the architectural appearance of the capital or the safety of existing communications.

The fact that today the most difficult administrative barriers are procedures related specifically to interaction with resource-supplying organizations – MOEK, MOESK, Mosvodokanal, are confirmed by the developers. “The procedure for the development and approval of a project for connecting to networks can last up to 1.5 years, in addition, each developer must undergo a state environmental review, which takes up to six months on average, from three months to six months usually requires a change in the type of permitted use the land plot”, Sychev said.

However, Luhansk mistaken that the length and the multiplicity of procedures for connecting to engineering networks in the construction of housing is understandable. Any connection involves bilateral obligations both from the developer, who is obliged to build a certain section of the network, and from the resource-supplying organization, which also must fulfill the obligations to bring the networks to the borders of the apartment building or to the boundaries of the site, if it is a question about uninhabited objects, he said. In addition, most of the procedures are related to the signing of various acts that confirm the fulfillment of all these conditions.

Electrification of construction

To simplify the overcoming of administrative procedures for business, the authorities of Moscow organized for the construction companies a contact center operating in the form of a hot line, where one can call and find out the answer to any question concerning construction, Lugansky says.

In addition, Moskomstroyinvest organizes seminars and meetings with developers, within the framework of which it gives necessary explanations regarding the innovations of the permits, Sychev adds.

However, the most serious step that optimizes and unifies the rules of the game in the construction sector is the introduction of electronic document management systems that can reduce the time spent on filing and receiving documents.

In particular from July 1 2017 the submission of documents by developers to receive a GPZU in Moscow is carried out only in electronic form. He also recalls approved general rules of land use and development of Moscow this year. “This is the second most important town planning document after the general plan, which is in open access and everyone can familiarize with it – not only developers, but ordinary citizens”, explains the developer.

In turn, in the association of developers of the Moscow region added, which significantly reduces the time of administrative procedures, the transition to the Internet platform. Developers cannot spend time on visits to the MFC, but to process documents remotely with the help of online resources and field service.

The information system for the provision of town-planning activities (ISOGD) has become a big help for developers, and now the applicant must upload his project to ISOGD before submitting documents to the Moscow Region. On a day, it is registered and the scanned documents are examined for correct design and completeness, after which an electronic file is being formed. When further applications are submitted for the issuance of GPZU, construction permits and commissioning of facilities, it will only be necessary to indicate the number of this case”, – was noted in the association of developers of the Moscow region.

Lugansky also specifies that ISOGD successfully works in Moscow. “From the system it is possible to obtain information about specific land plots, all in only 5 days. The information is provided on a reimbursable basis, but the cost of the service is exclusively the cost of the actual printout of the data”, he explains.

Price for barriers

According to interlocutors of RIA Realty, administrative procedures do not have significant impact on the cost of residential facilities. They are either free of charge or require slight expenses like state fees for issuing of permits.

As association of developers of Moscow region points out, one of the few “expensive” expenditure items for developers is a fee for changing a type of permitted usage of land plot.

Moreover, developer has to spend on connection to utility networks, adds Lugansky. But there are rates which are subject to state regulation.

“For example, connection to water supply networks may cost about 4-5 bln., provided that a point is situated not far from a land plot. We have online-calculator, where you can count correctly all expenditures”, – notes the official. According to his evaluation, the cost for technical connection can reach up to 10% from the total price of entire project.

No delays

Usually, not a lot of buyers are interested in administrative barriers- the only thing that matters is the influence on construction terms. But the owners of the projects that are still in construction do not need to worry. During the creation of construction schedule developer of course takes into account all required procedures says Sychev

“Generally investment climate, approval documentation procedures for developer- al this kind of information is B2B processes, which do not have the influence on customers. At the point when developer starts to sell he has already have the construction permit and the all primal questions are solved,-“ explains the managing partner of “Osnova” group of companies Oleg Kolchenko.

According o him the same is actual  for the end of construction. All norms and procedures, which has to be passed are clear and transparent. They are clear not the day before the commissioning the facility but from the moment he starts the construction. That is why, for instance, if different houses within the project are build according to the plan together with social infrastructure it