Construction reform started

20.01.2011 10:59
Articles about real estate | Construction reform started Parliament made significant adjustments in the construction business, taking 13 January 2011 Law on regulation of urban development. " Document prepared by the working group headed by Vice Prime Minister Sergei Tigipko involving Minregionstroya Ukraine, public organizations and construction companies. First of all, it is aimed at rooting out corruption in the construction industry, including involves reducing the number of permits and conciliation procedures, reducing the time of their passage, and a list of necessary documents, as well as the introduction of the principle of tacit consent. Detail about what innovation is a new law in the construction industry, in that he expects the state and what is the view of market participants figured correspondent LigaBusinessInform.

Briefly about the main


Thus, this document is reforming the permitting and the negotiation procedure in the construction industry. Thus, it is estimated Tigipko, 90% reduced the possibility of corruption schemes. "The important thing is that this sector accounts for more competition. Now this sector is scaring off foreign investors, who fear corruption and complicated procedures," - he says.

Thus, just as convinced Tigipko, revolutionary law, first, reduce prices, and secondly, to increase competition in the marketplace, stimulating economic growth through the development of the construction industry, as well as give people the opportunity to know where and how will they be built city area.

He also believes that innovation in the 20-30% reduction in construction costs for ordinary consumers and will spur adjacent to the construction industry: building materials, the secondary housing market, furniture, etc. The full force of the law should earn in 2012, and by the end of the year developers and buyers will be able to feel the results.

Fewer permits, less corruption

The law simplifies the licensing and the negotiation procedure, which reduces the risks of corruption schemes in the industry by 90%. If the developer had to undergo all procedures had to be not less than 415 days, now this term may not exceed 60 days.

It should also be considered as a positive signal to foreign investors. "Simplification of licensing procedures is very important for the foreigners who had refused to investment in construction in Ukraine because of the most corrupt and convoluted bureaucratic system in Europe", - the head of construction and development company "Slav-Invest" Milan Pajevic.

It is also expected that the simplification of procedures for permits to build in a system of land allocation will allow an average of four times to reduce the time from submission of investor applications, contracts of sale of land to permit the beginning of construction works. The term of introduction of the object is reduced to 10 days.

The Law introduces the norm that a building permit will be issued is not a legal entity (ed. - the customer's building), and the object. "Because the customer may change, but the object must be built", - explained the head of the Ukrainian Construction Association Lion Partskhaladze.

According to him, important for the builders is also introducing the principle of tacit consent when applying for a permit for construction work. This means that if an investor has filed all installed documents, but in due time received no response, then the object will be automatically accepted.

To simplify procedures for issuing and filing electronic documents will be introduced. This will allow to conduct business openly and not "lose" them. Issuance of a warrant, for example, will now be made without obtaining permission sanepidemstantsii, firefighters. All of these matching the city will do in advance. Will not, in fact, direct contact between the developer and officials. "And so there will be much less corruption", - said Mr. Partskhaladze.

The Act also provides for greater accountability for violations in urban planning from both the developers and by public officials, which will hinder the development of the construction industry, complicating the earlier simplified procedures.

Land acquisition for new


One of the key is to reduce the influence of local officials to challenge the land, where there is still corruption flourished. Now, local authorities will approve the zoning (functional division of the territory of the locality or surrounding area), under which the executive committees of local councils will carry out land acquisition. If no resolution, then - a reasoned refusal. A reason for refusal to grant such permission may only be a discrepancy between the location of the land requirements of the laws and general plans of settlements. Other reasons for failure virtually eliminated.

"This reform really give me what I can not depend on voluntarism and the mayor will not now wait for the decision and resolution over the years, as it was before and there are now" - the general director of group companies "Hertz" Igor Denisenko.

In addition to quickly streamline the country's territorial division, since 2012 law introduced a moratorium on the allocation of land in those towns or regions where there is no master plan.

Accommodation and prices on the


According Tigipko, the implementation of the law and reduce corruption will in the near future to reduce housing costs by 20-30%. "And if we will resume mortgage lending, the decline in prices can be expected in 2012. In addition, the new law will boost the production of building materials, furniture, metallurgy industry, infrastructure companies," - he says.

In turn, the deputy head of the Verkhovna Rada Committee on Construction, Regional Policy and Housing, the deputy head of Ukrainian Construction Association (UCA) Igor Lysov confirms that one of the main purposes of this document is to reduce prices for consumers.

After the event


It should be noted that the new law quickly worked his way into the parliament. Developed - in November, is registered - in December and passed in January. "I can not believe that such a revolutionary document in our country could be so fast to develop and adopt," - commented Leo Partskhaladze.

But, of course, a radical simplification in the construction industry will enjoy not for everyone. First of all, we are talking about local officials, Mayors and deputies of local councils, which lose much of authority and "trough".

In general, the law, which some have called revolutionary, others - a historic, designed to adapt the regulatory policy of Ukraine towards European standards, to ensure favorable conditions for business, development of the building and adjacent industries.

LigaBusinessInform

Content tags: Housing construction
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