Developers will start without permit
Minstroy proposed the next amendments to the Construction Code
Minstroy developed amendments to the Urban Development Code, which will allow developers to enter the site before obtaining all permits, in particular, construction permits. Experts interviewed by the “Moskovskaya perspektiva” said that such a measure would reduce the time for house construction, including the renovation program, and would also increase Russia’s place in the World Bank’s Doing Business ranking.
The Ministry of Construction and Housing and Communal Services proposes to introduce a new concept – “a complex of works of the preparatory period of construction, reconstruction”. You can start them before you get construction permit. The department believes that this will shorten the time of production.
It is reported that in order to begin the preparatory work, it will be necessary to obtain a separate permit for conducting preparatory work. To do this, you need to submit project documentation, which will then pass the state expertise.
According to Yuri Volkov, General Director of Stroytech Group of Companies, preparatory work can now take from two months to six months, depending on the site. What exactly includes the complex of works of the preparatory period is not specified in the Ministry of Construction, but experts believe that this includes the reorganization of the street and road network, the construction of access roads, the installation of temporary communications, the erection of temporary structures for the construction period, including residential towns, points washing of wheels, sales office, etc., installation of enclosing structures, installation of a tower crane. “Of course, if at the time of receiving the construction permit the developer will have a ready site for the production of works, he can immediately begin the active phase of construction”, – said Yuri Volkov.
“This innovation will allow developers to better prepare for the start of the project, identify in advance a number of unforeseen difficulties that may arise at the beginning of construction, and find ways to solve them. Completing the complex of works of the zero stage in advance, after obtaining a building permit and with the necessary financial and technical resources, the developer will immediately be able to start the active stage of erecting the residential complex, “says Roman Lyabikhov, General Director of Atlant Group. Thus, according to him, the dynamics of construction at the start will be higher than in the case when training begins only after receiving permit, which, in turn, can have a positive impact on sales of the developer.
According to Alexei Yashin, General Director of “Wola Grand”, the developer of IFC Match Point, the new mechanism will allow to shift the construction time taking into account the earlier start of production. “The shift in terms depends on the state of the site, its size and can reach several months. This is just commensurate with the timing of the examination of the project documentation of large facilities. The ability to “parallelize” both processes will allow us to find additional temporary reserves for the implementation of the project”,- he said.
Experts interviewed by ” Moskovskaya perspektiva ” agree that the initiative of the Ministry of Construction together with other innovations will improve Russia’s position in the World Bank’s Doing Business rating. “According to last year’s rating, Russia occupies the 115th place in obtaining a building permit, taking into account the terms of issue and the volume of documents submitted for consideration. I think that the amendments to Construction Code will improve Russia’s position in the international rating and contribute to speeding up the procedure for obtaining permits”, – said Alexei Yashin.
According to Roman Lyabikhov, in general, the work of the authorities to reduce administrative barriers in construction is quite active. “Of the latest positive innovations, it is worth noting the transfer of public services in electronic form. It not only allowed to reduce the time for obtaining permits and approvals, but also simplified the whole process of filing documents, made it more transparent and convenient. In addition, a number of additional barriers disappeared, which, for subjective reasons, could delay the approval of documentation, which ultimately created additional difficulties for developers and adversely affected the project implementation time”, – he noted.
At the same time, the Ministry of Construction also thought about the situation, when the developer for some reason could not obtain construction permit within a year from the start of the preparatory work. The customer will be obliged to bring the land plot “into a usable state and restore the disturbed state of the environment”.
The World Bank publishes the Doing Business rating annually, reflecting the difficulty of opening and running its own business in different countries of the world. This rating reflects the level of the business climate in the country, which affects the flow of investment and positively affects the level of life of the state.
The rating is compiled on the basis of 10 indicators of regulation of entrepreneurial activity, taking into account the time and cost of the entrepreneur’s fulfillment of the state’s requirements for the registration of a new enterprise, the activities of the enterprise, the conduct of trade operations, enforcement of contracts, taxation and closure of the enterprise.