RF Ministry for Regional Development: a new List of works subject to SRO admittance to be introduced on 01 July 2010.

18.05.2010

Legal Update No. 144.

Goltsblat BLP advises that Order of the RF Ministry for Regional Development No. 624 of 30 December 2009 ''On introducing a List of works relating to engineering surveying, preparation of design documentation, construction, reconstruction, capital repairs to capital construction facilities, that affect the safety of capital construction facilities'' will take effect on 1 July 2010.

1. This List of works subject to SRO admittance has been reduced by more than half and is significantly different from the current one, specifically, the list of works

  • relating to organisation of construction, reconstruction and capital repairs by a person engaged by the developer or customer under a contract (General Contractor) has been reduced. In particular, in the area of industrial construction, subject to SRO admittance will be outside General Contractors organising construction, reconstruction and capital repairs at facilities and sites in
    • the fuel industry,
    • coal mining,
    • ferrous metallurgy,
    • non-ferrous metallurgy,
    • the chemical and petrochemical industry,
    • the engineering and metal-working industries,
    • timber, timber processing and pulp and paper industries.

As for light and food industry, agriculture and forestry enterprises, SRO admittance certificates will have to be obtained by outside General Contractors in order to organise construction, reconstruction and capital repairs with respect to hazardous, hi-tech or unique facilities, as indicated in Article 48.1 of the Urban Planning Code of the Russian Federation.

  • relating to construction control by persons engaged by the developer or customer under a contract has been limited;
  • relating to independent exercise of construction control by the developer have been excluded from the list;
  • relating to independent organisation by the developer of construction (performance of the General Contractor’s functions), as provided for in the new List of works, will remain exempt from the SRO admittance requirement;
  • other amendments:
    • some work types have been excluded,
    • a new type of work - organisation of engineering surveying by a person engaged by the developer (General Contractor) under a contract - has been introduced,
    • the contents of some work type categories, including preparatory work on a construction site, have been changed;
    • some work types and work type categories will be subject to SRO admittance only if associated with highly hazardous, hi-tech or unique facilities (Article 48.1 of the RF Urban Planning Code).

2. The new list of works subject to SRO admittance will (in contrast to the old one) be applicable to works performed at stand-alone capital construction facilities with a height of up to two stories and a total area of up to 1500 square metres that (i) are not intended for human residence or production purposes; and (ii) are intended for production activities, that do not require sanitary buffer zones or for which, within the land plots accommodating such facilities, sanitary buffer zones have been set or need to be set.

3. The new list of works, like the current one, is not applicable to works involving preparation of project documentation for construction, reconstruction, or capital construction of facilities for which no construction permit is required under clause 51.17 of the RF Urban Planning Code or a number of housing facilities listed in the Order.

4. Unlike the current list, the new one contains no references to OKVED  and provides an exhaustive list of work types subject to SRO admittance.

5. Nevertheless, the Order issued by the RF Ministry for Regional Development fails to decide the future of SRO work admittance certificates already issued in compliance with the current List or those still to be issued before 01 July 2010.

For additional information, please contact:

Vitaly Mozharowski,
Partner, Real Estate and Construction,
Goltsblat BLP,
Tel: +7 (495) 287 44 44,
Email: info@gblplaw.com

Elena Barinova,
Partner, Real Estate Investment  and Finance,
Goltsblat BLP,
Tel: +7 (495) 287 44 44,
Email: info@gblplaw.com

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