russian federation in the world bank ranking...
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RUSSIAN FEDERATION IN THE WORLD BANK RANKING
“DEALING WITH CONSTRUCTION PERMITS”
July 2015
Ministry of Construction, Housing and Utilities of the Russian Federation
MOSCOW GOVERNMENT
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REFORMS 2014 – BEGINNING OF 2015
Federal Law No 250-FZ dated 23.07.2013
The processing time of property registration is reduced to 10 calendar days (procedure 21)
Federal Law No 447-FZ dated 22.12.2014
Construction permits and occupancy permits are issued only in electronic form (procedures 8 and 19)
Moscow City Government Regulation No 436 dated 04.08.2014
Consideration by the City and Land Planning Committee or by its work group of draft development plans of land plots is excluded (procedure 3)
Moscow City Government Regulation No 164-PP dated 08.04.2015 For properties having the same characteristics BuildCo warehouse
Approval of the project documentation for water (sewage water) metering unit is no longer required (procedure 6)
Government Regulation No 525 dated 29.05.2015
REGIONAL LEVEL
Approval of architectural and urban planning design is not required (procedure 7) For properties having the same characteristics BuildCo warehouse
Moscow City Government Regulation No 258-PP dated 14.05.2014
Ministry of Construction, Housing and Utilities of the Russian Federation Order of № 117/pr dated 19.02.2015
FEDERAL LEVEL Cadastral registration is done through interagency electronic interaction (without developer’s participation) (procedure 20)
New forms of construction permit and occupancy permit are approved. Technical plan is annex to occupancy permit (procedure 20)
1. REQUEST A TOPOGRAPHIC SURVEY OF THE LAND PLOT
2. OBTAIN CADASTRAL PASSPORT OF THE LAND
3. REQUEST AND OBTAIN THE DEVELOPMENT PLAN OF LAND PLOT (GPZU) AT THE MOSCOW ARCHITECTURE AND CITY PLANNING COMMITTEE
4. REQUEST AND OBTAIN AN ENGINEERING AND GEOLOGICAL SURVEY AND OBTAIN ACT OF MOSCOW GEOLOGICAL - GEODESIC DEPARTMENT
5. REQUEST AND OBTAIN TECHNICAL CONDITIONS FOR WATER AND SEWAGE
6. OBTAIN COMPLIANCE CERTIFICATE FROM MOSCOW WATER AND SEWAGE COMPANY
7. REQUEST AND OBTAIN APPROVAL OF THE ARCHITECTURAL AND URBAN PLANNING DESIGN
8. REQUEST AND OBTAIN PERMISSION FOR CONSTRUCTION
9. REQUEST AND OBTAIN AN OPENING ORDER OF PRODUCTION OF WORKS FROM THE UNION OF ADMINISTRATIVE TECHNICAL INSPECTIONS (UATI)
10. NOTIFY THE MOSCOW DISTRICT MUNICIPALITY ABOUT THE COMMENCEMENT OF WORK
11. NOTIFY THE FIRE DEPARTMENT ABOUT THE COMMENCEMENT OF WORK
12. ORDER AND RECEIVE RESULTS OF LABORATORY TESTS OF FOUNDATION PITS FROM MOSGORGEO-TREST FOR THE ACCEPTANCE COMMISSION
13. RECEIVE THE SET OUT INSPECTION FROM THE MOSGORGEOTREST
14. RECEIVE RANDOM INSPECTION DURING CONSTRUCTION
15. CONNECT TO WATER AND SEWAGE SERVICES
16. NOTIFY THE MOSCOW DISTRICT MUNICIPALITY ABOUT THE COMPLETION OF CONSTRUCTION
17. RECEIVE FINAL INSPECTION BY MOSCOW STATE COMMITTEE OF CONSTRUCTION SUPERVISION
18. REQUEST AND CONVENE ACCEPTANCE COMMISSION
19. REQUEST AND RECEIVE THE DISPOSITION ON OPERATION OF BUILDING (OCCUPANCY PERMIT)
20. REQUEST AND RECEIVE THE TECHNICAL PLANS / CADASTRE PASSPORTS OF THE BUILDING
21. REGISTER THE BUILDING AFTER COMPLETION IN ROSREESTR
IN 2016 RANKING THERE SHOULD BE
excluded 12 procedures
3 procedures
6 procedures
updated (terms)
no change
AS A RESULT:
9 procedures
99 days
0,9% of
Warehouse cost
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RUSSIAN FEDERATION. Dealing with Construction Permits
DOING BUSINESS-2015 RESULTS
RUSSIAN FEDERATION:
156th in ranking 21 procedures
239 days 2% of warehouse cost
Moscow:
RUSSIAN FEDERATION. Dealing with Construction Permits
DOING BUSINESS-2015 RESULTS
1. REQUEST A TOPOGRAPHIC SURVEY OF THE LAND PLOT
2. OBTAIN CADASTRAL PASSPORT OF THE LAND PLOT
3. REQUEST AND OBTAIN THE DEVELOPMENT PLAN OF LAND PLOT
6. REQUEST AND OBTAIN TECHNICAL CONDITIONS FOR WATER AND SEWAGE
7. REQUEST AND OBTAIN APPROVAL OF THE ARCHITECTURAL AND URBAN PLANNING DESIGN BY SAINT-PETERSBURG ARCHITECTURE AND CITY PLANNING COMMITTEE (KGA)
8. REQUEST AND OBTAIN PERMISSION FOR CONSTRUCTION
9. REQUEST AND OBTAIN AN OPENING ORDER OF PRODUCTION OF WORKS FROM THE STATE ADMINISTRATIVE TECHNICAL INSPECTORATE
10. NOTIFY THE STATE AGENCY OF CONSTRUCTION SUPERVISION AND EXPERTISE OF SAINT-PETERSBURG ABOUT COMMENCEMENT OF CONSTRUCTION WORKS
11. RECEIVE INSPECTION FROM THE STATE AGENCY OF CONSTRUCTION SUPERVISION AND EXPERTISE
12. REQUEST TERMS OF CONNECTION TO UTILITY NETWORKS AND REQUEST A CONTRACT FOR WATER AND SEWAGE CONNECTION
13. OBTAIN CONNECTION TO WATER AND SEWAGE SERVICES
14. RECEIVE FINAL INSPECTION FROM THE STATE AGENCY OF CONSTRUCTION SUPERVISION AND EXPERTISE
15. REQUEST AND RECEIVE THE DISPOSITION ON OPERATION OF THE BUILDING (OCCUPANCY PERMIT)
16. REQUEST AND OBTAIN A TECHNICAL PLAN OF THE BUILDING
17. REGISTER THE BUILDING AT ROSREESTR
IN 2016 RANKING THERE SHOULD BE excluded 10 procedures
AS A RESULT:
7 procedures
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3 procedures updated (terms) 4 procedures no change
RUSSIAN FEDERATION:
156th in ranking 17 procedures
237 days 1,6% of warehouse cost
Saint - Petersburg:
4. REQUEST AND OBTAIN THE DECISION OF THE STATE ADMINISTRATIVE TECHNICAL INSPECTO-RATE ON FENCING THE CONSTRUCTION SITE
5. REQUEST AND OBTAIN AN ENGINEERING AND GEOLOGICAL SURVEY OF THE LAND PLOT
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BASIC PRINCILES OF REGULATING CONSTRUCTION
Basic principles regulating construction industry, laid down in Urban Development Code of the Russian Federation (enacted in 2004):
1. RISK-BASED REGULATION:
Simplified regulation: (including BuildCo’s warehouse)
General regulation
Special regulation
+ Government or non-government expert examination of project documentation + Regional construction supervision
+ Federal Government expert examination of project documentation + Federal construction supervision
- Construction permit - Developer’s responsibility: requirement to be a member of a self-regulating organization + SRO compensation funds - Occupancy permit
or
10 various kinds of project examination are grouped into united expert examination of project documentation (state or non-state)
4 types of construction supervision are grouped into united government construction supervision (Moscow State Construction Supervision Committee in Moscow )
State services in the construction industry are delivered electronically
form and are accessible via single internet portal of state services
!
The system of electronic interactions between several government agencies is established (for federal and regional executive authorities). Federal Law No 210-FZ
dated 27.07.2010 forbids an agency to request the documents from an applicant that another agency possesses
2. «ONE STOP SHOP» PRINCIPLE
Starting from 2014 construction permits as well as permits for putting buildings in commission are issued only electronically (the Moscow City Government Regulation No 436 dated 04.08.2014)
3. ELECTRONIC INTERACTION AND GOVERNMENT SERVICES IN ELECTRONIC FORM
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12 PROCEDURES SUGGESTED TO BE EXCLUDED
3 PROCEDURES SUGGESTED TO BE EXCLUDED DUE TO REFORMS INTRODUCED DURING 2014-2015
4 PROCEDURES SUGGESTED TO BE EXCLUDED AS INCONSISTENT WITH METHODOLOGY
№ 6. Obtain compliance certificate from Moscow Water and Sewage Company № 7. Request and obtain approval of the architectural and urban planning design
№ 11. Notify the Fire Department about the commencement of work
№ 12. Order and receive results of laboratory tests of foundation pits from Mosgorgeotrest for the Acceptance Commission
№ 1. Request a topographic survey of the land plot
№ 2. Obtain cadastral passport of the land
№ 4. Request and obtain an engineering and geological survey and obtain an Act of Moscow Geological - Geodesic Department
№ 10. Notify the Moscow District Municipality about the commencement of work
№ 16. Notify the Moscow District Municipality about the completion of construction
№ 17. Receive final inspection by Moscow State Committee of Construction Supervision
№ 18 Request and convene Acceptance Commission
№ 20. Request and receive the technical plans / cadastre passports of the building
5 PROCEDURES SUGGESTED TO BE EXCLUDED DUE TO REFORMS IMPLEMENTED EARLIER
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№ 6. Obtain compliance certificate from Moscow Water and Sewage Company
The only approval of project documentation in terms of water supply, which was earlier required by the law, is now not required
PROCEDURE IS ELIMINATED The Russian Federation Government Regulation of the No 525 dated 29.05.2015
№ 7. Request and obtain approval of the architectural and urban planning design
The need to obtain the Certificate of approval of architectural and urban object decisions was provided by the Moscow City Government Regulation No 284-PP dated 30.04.2013.
PROCEDURE IS ELIMINATED
Moscow City Government Regulation No 258-PP dated 14.05.2014
For buildings having characteristics similar to those
of “reference building”
Simplified regulation
PROCEDURES SUGGESTED TO BE EXCLUDED DUE TO REFORMS INTRODUCED DURING 2014-2015
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№ 20. Request and receive the technical plans / cadastre passports of the building
А) Technical plan:
BuildCo has a full-time cadastral engineer and prepares the technical plan on its own
Technical plan is created by a person who has a valid qualification certificate as a cadastral engineer. (Federal Law No 221-FZ dated 24.07.2007)
In Moscow there are about 2000 cadastral engineers
B) Cadastral passport - The procedure of registering a building in the Cadastre is carried out through electronic interagency interaction: the agency issuing the construction permit forwards it to the Federal Cadastral Chamber. (Federal Law No 221-FZ dated 24.07.2007 as amended on 01.03.2015)
- New form of occupancy permit (Order of Ministry of Construction, Housing and Utilities of the Russian Federation № 117 dated 19.02.2015) provides application of this mechanism (the technical plan is required in the application to the occupancy permit).
The company does not need to obtain a cadastral passport for the building constructed, since state registration of rights is carried out on the basis of data received from the Cadastral Chamber without applicant’s participation. (Federal Law No 122-FZ dated 21.07.1997 as amended on 01.03.2015)
Moscow State Construction Supervision Committee
OCCUPANCY PERMIT
CADASTRAL CHAMBER CADASTRAL REGISTRATION
RUSSIAN STATE REGISTER PROPERTY REGISTRATION
Electronic interaction. It is forbidden to request documents that are already available to government agencies
PROCEDURES SUGGESTED TO BE EXCLUDED DUE TO REFORMS INTRODUCED DURING 2014-2015
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№ 2. Obtain cadastral passport for the land
According to the official methodology the is 100% owned by BuildCo and is accurately registered in the cadastre and land registry. As the result there is no need in additional land survey and demarcation
Cadastral passport is an extract from the State Real Estate Cadastre (Federal Law No 221-FZ On State Real Estate Cadastre)
In the process of preparing the urban land plot development plan, the Moscow City Architecture Committee requests the cadastral passport from the Russian State Register on its own through of electronic interaction. ELECTRONIC INTERACTION IS IMPLEMENTED 15.04.2012
№ 11. Notify the fire department about the commencement of work
The notification of state authorities on the schedule of works was required by the Moscow Government Regulation No 207 dated 17.03.1998
THE PROCEDURE IS ELIMINATED The Moscow City Government Regulation No 603 dated 08.08.2000 “On approving the Rules for production of ground and construction works, laying and reorganizing the engineering network and communications in Moscow”
THE MINISTRY OF EMERGENSY SITUATIONS OF RUSSIA HAS NO AUTHORITY TO PERFORM THIS PROCEDURE (Decree of President of Russian Federation No 868 dated 11.07.2004)
!
PROCEDURES SUGGESTED TO BE EXCLUDED DUE TO REFORMS IMPLEMENTED EARLIER
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№ 10. Notify the Moscow District Municipality about the commencement of work
№ 16. Notify the Moscow District Municipality about the completion of construction
№ 17. Receive final inspection by Moscow State Committee of Construction Supervision
Notification about the commencement and completion of works is required to hold the state construction supervision, final inspection (final examination) is the final stage of supervision. In simplified regulation the state construction supervision is not required, therefore there are no such procedures.
Notice of Executive bodies on performance of the work provided by the Decree of Moscow Government Москвы № 207 dated 17.03.1998. This decree was cancelled 08.08.2000 (the Moscow City Government Regulation № 603). Prefectures don’t have authority to accept notice of the works (the Moscow City Government Regulation № 157-ПП dated 24.02.2010). It’s prohibited (№ 76-PP dated 15.02.2013)
General regulation
1. CONSTRUCTION PERMIT
2. NOTIFY THE MOSCOW
DISTRICT MUNICIPALITY ABOUT THE COMMENCEMENT OF WORKS
3. Supervision
4. NOTIFY THE MOSCOW DISTRICT
MUNICIPALITY ABOUT THE COMPLETION OF CONSTRUCTION
5. FINAL INSPECTION BY MOSCOW
STATE COMMITTEE OF CONSTRUCTION SUPERVISION
6. OCCUPANCY PERMIT
PROCEDURES RELATED TO THE STATE CONSTRUCTION SUPERVISION
1. CONSTRUCTION PERMIT
2. OCCUPANCY PERMIT WITH BUILDING CHECK-UP
Simplified regulation (BuilCo) NO SUPERVISION
In simplified regulation an check-up of the constructed building is held as part of the procedure of issuing of the occupancy permit (10-day period)
PROCEDURES SUGGESTED TO BE EXCLUDED DUE TO REFORMS IMPLEMENTED EARLIER
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№ 1. Request a topographic survey of the land plot
№ 4. Requesting and obtaining an engineering and geological survey and obtain an Act of Moscow Geological - Geodesic Department
Engineering surveys are carried out in every country and are aimed at obtaining geological and topographic information required for correct and accurate project design (preparation of high-quality project documentation)
BuildCo possesses ready-made project documentation (World Bank Methodology)
BuildCo has full-time professionals who can prepare topographic plans (World Bank methodology)
In case of simplified regulation project inspection is not conducted
None of the agencies has to review the results of engineering surveys
>> TOPOGRAPHIC SURVEY is a part of engineering survey (Building regulation “Engineering survey for construction. Basic principles” No 47.13330.2012) .
>> ENGINEERING SURVEYS are performed by qualified specialists who possess access permit of self-regulated organization. Article 47 of the Urban Development Code of the Russian Federation
PROCEDURES SUGGESTED TO BE EXCLUDED AS INCONSISTENT WITH METHODOLOGY
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№ 12. Order and receive results of laboratory tests of foundation pits from Mosgorgeotrest for the Acceptance Commission
№ 18. Request and convene acceptance commission
According to Article 55 of the Urban Development Code of the Russian Federation the Acceptance Commission is convened only in case when construction was delivered on the basis of contractor agreement
SIGNING A CONTRACTOR AGREEMENT
ACCEPTANCE CONSTRUCTION
The laboratory report of Mosgorgeotrest for the Acceptance Commission was obligatory (if the construction is carried out by the contractor ) on the basis of Moscow City Government Regulation №530 dated 11.07.2000
THE PROCEDURE IS ELIMINATED Moscow City Government Regulation No 1249-PP dated 30.12.2008
Moreover, since BuildCo carries out construction by itself this procedure was never required !
PROCEDURES SUGGESTED TO BE EXCLUDED AS INCONSISTENT WITH METHODOLOGY
BuildCo has 60 employees and constructs a building/property using its own resources
ACCEPTANCE PROCEDURE IS NOT PERFORMED
construction on the basis of contractor agreement Own-account construction (without contractor agreement )
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THE DURATION OF THE PROCEDURES SHOULD BE CORRECTED
№ 3. Request and receive the architectural plan of the land plot in the Committee for Architecture and Urban Planning of Moscow
№ 5. Request and receive technical conditions (specification) of water supply and sewage system
№ 21. Building registration in the Russian State Register after the completion of construction
53 days 30 days
The Moscow City Government Regulation No 164-PP dated 08.04.2015 excludes the review of architectural and land development plans by the Committee for Urban Planning and Land or its Workgroup for buildings having the same characteristics as the “reference building”
Therefore, reviewing architectural and land development plans should not exceed a 30-day period established by the Moscow City Government Regulation No 229-PP dated 25.05.2011
30 days 14 days Technical specification is provided within 14 days from the date of application (part 7 article 48 of the Urban Development Code and clause 9 of the Government of Russian Federation Regulation No 83 dated 13.02.2006).
18 days 10 days Federal Law No 447-FZ dated 22.12.2014 amended part 3 of article 13 of Federal Law No 122-FZ dated 21.07.1997; as a result of the changes the period of state registration is reduced to 10 calendar days. The reform is taken into consideration by World Bank in «Registration of Property Rights».
Simplified regulation
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INFORMING CONSTRUCTION AND ENGINEERING ORGANIZATIONS
HOLDING MEETINGS TO
PROVIDE INFORMATIONS
DISTRIBUTION OF EDUCATIONAL
MATERIALS AND INSTRUCTIONS
More than 4.5 thousand sets
CONDUCTING REGULAR TRAINING
SEMINARS
More than 150 since 2013
PRESENTATION OF ELECTRONIC
SERVICES IN DURING EXHIBITIONS AND
ROUND TABLES
Providing information:
Providing feedback:
PERSONAL ACCOUNT OF THE APPLICANT ON THE STATE SERVICES
PORTAL
Allows the applicant to get all the information on the processing of the application and the results of its consideration by the authorities
PERSONAL ACCOUNT OF DEVELOPER ON THE MOSCOW CONSTRUCTION
PORTAL
Allows the developer: - Get all the information on specific objects, construction schedules, issued permits, approvals and changes in legislation; - Contact the authorities on operational issues
HOTLINE
Allows the applicant to promptly obtain advice and clarification on the procedure for providing public services, as well as to report any violations of established procedures and file a complaint against the actions of officials
SURVEYS OF CONSTRUCTION COMPANIES
Reputable consulting companies such as BCG, BDO, PwC perform annual surveys of construction companies to monitor the regulatory impact of reforms
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ESTIMATED BY THE WORLD BANK IN THE FRAMEWORK OF THE RATING “DOING BUSINESS”
QUALITY CONTROL BEFORE CONSTRUCTION
QUALITY CONTROL DURING CONSTRUCTION
QUALITY CONTROL AFTER CONSTRUCTION
QUALITY CONTROL & SAFITY MECHANISMS
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QUALITY CONTROL BEFORE CONSTRUCTION
The project documentation is subject to examination. Examination of project documentation can be carried out by the state organization and private company.
The experts, who participates in the expert examination of project documentation are required to complete certification in the Ministry in order to confirm compliance with the existing requirements established by law for the experts. Requirements to be certified expert to conduct expert examination of project documentation are:
1) university degree in corresponding field;
2) work experience in the field of preparation of design documentation not less than 5 years or work experience in relevant positions in the agencies or organizations conducting the examination of project documentation;
3) absence of no unexpunged conviction for committing a crime
Prior to construction there is need to obtain a permit for construction in the authorized authority, which is carried out to check the compliance of the project documentation with requirements of architectural plan of the land plot
QUALITY CONTROL & SAFITY MECHANISMS
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QUALITY CONTROL DURING CONSTRUCTION
In the construction process are the following types of control:
Construction supervision (decree of the RF Government dated 21.06.2010 No. 468 “On the procedure of carrying out construction supervision during construction, reconstruction and capital repair of capital construction objects") – may be exercised by the person performing the construction, the person responsible for preparation of the project or other person engaged by contract. State construction supervision (decree of the RF Government dated 01.02.2006 № 54 “On the state construction supervision in the Russian Federation") is carried out by the state authorized executive body. The result is providing a certificate confirming compliance of the constructed buildings with construction norms and rules. Audits are conducted in accordance with audit plan, as construction work.
Not permitted to perform other types of state supervision during construction except for state construction supervision
!
QUALITY CONTROL & SAFITY MECHANISMS
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QUALITY CONTROL AFTER CONSTRUCTION
The developer after finishing the construction within 7 working days notify the authorized body to implement the state construction supervision on the completion of construction
The authorized body for implementation of the state construction supervision conducts final review, in which: 1) carried out a visual inspection of the buildings (including individual works, building constructions, areas of network engineering and applied construction materials (products)) 2) checks all acts (regulations and notices) to eliminate violations (deficiencies) identified during the state construction supervision and construction control.
THE FINAL INSPECTION REPORT ON THE BASIS OF WHICH THEY ISSUE A CONCLUSION ON COMPLIANCE OF THE CONSTRUCTED BUILDING WITH CONSTRUCTION NORMS AND RULES Issue of occupancy permit is performed by the authorized state executive body. The result is the verification of the conformity of the constructed building to the requirements of the urban plan of the land plot, and also the availability of the report on the compliance of the constructed object with construction norms and rules.
QUALITY CONTROL & SAFITY MECHANISMS
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QUALITY CONTROL BEFORE, DURING AND AFTER CONSTRUCTION IN RELATION TO THE "REFERENCE OBJECT" OF THE WORLD BANK
Before construction During construction
After construction
BuildCo obtains the construction permit. During that process carried out to check of compliance of project documentation with development plan of land plot
BuildCo gets occupancy permit, during which process there is carried out an inspection of the constructed building
QUALITY CONTROL & SAFITY MECHANISMS
BuildCo performs construction control
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LIABILITY IN THE EVENT OF A DEFECT, ASSOCIATED WITH SAFETY OF CONSTRUCTED OBJECT
Responsibility in case of detection of deficiencies related to the safety of the built facility regulated by Chapter 8 of the Construction code of the Russian Federation
Persons who are responsible for the damages caused by the destruction, damage of object of capital construction, violations of safety requirements in the construction of object of capital construction, requirements for ensuring safe operation of buildings, constructions:
the person who works on preparation of project documentation the person who works on construction of the building the organization that conducted the state examination of project documentation or non-state expertise of project documentation authority of the state construction supervision self-regulatory organization whose members are individuals who carried out the preparation of project documentation
QUALITY CONTROL & SAFITY MECHANISMS
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QUALITY CONTROL & SAFITY MECHANISMS
THE INSTITUTE OF SELF-REGULATION IN CONSTRUCTION IN THE RUSSIAN FEDERATION
Works on engineering surveys, preparation of project documentation, construction, reconstruction, capital repair of construction objects, which affect safety of objects of capital construction can be performed only by persons who are members of self-regulatory organizations and have the corresponding permits issued by those organizations.
Self-regulatory organization within its own compensation fund is jointly and severally liable for the obligations of its members arising out of harm caused by the destruction, damage of object of capital construction, violations of safety requirements in the construction of object of capital construction
The compensation fund of the self-regulatory organization consist of contributions of members of self-regulatory organization Self-regulatory organization may establish for its members requirements for liability insurance, which may happen in the event of injury due to the shortcomings of works which influence safety of objects of capital construction (part 5 of section 55.16 of Construction code of the Russian Federation)