Sergey Boldyrev: reduction of administrative barriers saves time and money

Business Director of Podium Market company Sergey Boldyrev gave a speech at the panel discussion “Warehouses: a way out of the financial crisis” on the international investment forum PROESTATE-2016.

He spoke about the construction project of the class B+ complex “Salaryevo” implemented by the Podium Market in accordance with the Moscow government’s set of measures to ensure the possibility of building a low-risk facilities in 9 steps and obtaining of all necessary approvals and permits in 99 days.

He noted that the Podium Market company has no experience in construction of such facilities in Moscow. The company has calculated and compared costs for construction and rental costs of the necessary area, and arrived to the obvious conclusion that it is much more profitable to build a warehouse for their own needs, than to pay for its rent.

Due to a number of the Moscow government regulations aimed at simplifying administrative procedures for construction of low-risk facilities, today this construction project of the Podium Market has its economic benefits, moreover it is predictable in terms of timing and expenses.

Podium Market expects that the paperwork costs will not exceed 0.9% of the total cost of the warehouse, compared with previously evaluated 2%. The term for obtaining approvals will take no more than 99 days. Taking into account the current rental rates for warehouses, construction costs will be repaid in 2-2.5 years.

In the end of March – the beginning of April the company has launched the project. By now it has got GPZU (development plan of the land plot) (stage 1) for construction of a warehouse complex. GPZU was supplemented with technical conditions of Mosvodokanal as well as with information on underground communications from Mosgorgeotrest. This greatly reduced the term of development of the construction project, particularly the part relating to connection of the warehouse to the central water supply and sewage networks.

The company has also obtained the construction permit (step 2) and the excavation order (stage 3).

Recently Mosgorgeotrest has completed control land surveying on request of the company (step 4).

Current on-site activities imply construction and installation works. The company noted that all approvals for construction of the warehouse were received ahead of schedule, saving them 11 days. It became possible due to the fact that each procedure was completed before the term provided by the law.

Podium Market company has another 5 steps ahead namely:

  • Random inspection during construction works (Union of Administrative Technical Inspections – UATI);
  • Close the order on conducting excavation works by UATI;
  • Connect to water and sewage services (Moscow Water and Sewage Company – Mosvodokanal);
  • Request and receive the disposition on operation of building (occupancy permit) (Mosgosstroynadzor – Moscow State Committee of Construction Supervision);
  • Register the building after completion in Rosreestr (Federal Service for State Registration, Cadastre and Cartography).

The newspaper «Kommersant» tracks the process of warehouse contruction in real time in a co-project with the fashion-retailer.

Stroim Prosto