In an effort to remove some of the licensing burden from the state, in 2009, the Russian government transferred the authority over certain industries to the participants in the industry through the formation of self-regulating organizations, or SROs. As of January 1, 2010, this change also applied to the surveying, design, and construction industries. Any business wishing to engage in design or construction activities in Russia must become a member of an SRO.
Activities Required to Belong to an SRO
SROs are, by law, non-profit organizations funded entirely by membership fees. Their primary function is to develop and implement standards, rules, and codes to regulate their industries. As we have said, SROs take the place of government regulation of certain industries, including businesses that do the following:
- Engineering and surveying for the purposes of erecting buildings and residences.
- Designing buildings and residences.
- Construction of buildings and residences.
There are currently around 1,000 SROs registered and operating in Russia. Any business entity planning to engage in construction and design activities must join one of these SROs and pay the required membership fees. They will then be subject to the codes and regulations imposed by the SRO. Specific construction activities that are required to join an SRO are determined by the Ministry for Regional Development of the Russian Federation. There are over 50 categories of activities included in the Ministry’s list. While not complete, the following list gives an idea of the kinds of activities that are required to join an SRO:
- Construction site preparation
- Machine mining
- Excavation of soil
- Drilling of wells
- Drilling and blasting work during construction
- Installation of masonry, wood, or metal structures
- Protection of construction structures, pipelines, and equipment
- Façade work
- Installation of indoor engineering works
- Installation of outdoor gas or electric networks
- Construction of oil, gas, or nuclear power facilities
- Installation of transportation structures
- Construction of motorways, bridges, and overhead roads
- Preparation of land plot diagram
- Preparation of architectural, constructive, and technological solutions
- Preparation of environmental protection projects
- Preparation of fire safety projects
- Engineering survey
- Geodetic engineering survey
- Geological engineering survey
- Environmental engineering survey
- Survey of buildings’ and structures’ foundation soil conditions
What It Costs to Join an SRO
The fees associated with joining an SRO vary depending on whether the work you will be doing involves hazardous conditions or nuclear energy, but they can be substantial. Once you have joined an SRO, you will be issued a certificate authorizing you to perform the approved construction activity. The performance of construction and design activities that require SRO membership, as well as the supervision of such activity, in respect to any commercial property may only be carried out by a company holding a valid certificate. Subcontractors must also join the appropriate SRO and obtain a certificate of their own, since Russian law does not recognize the “umbrella principle” in respect to admission certificates. Both Russian and foreign legal entities may join an SRO and obtain admission certificates.
Confused by Self-Regulating Organizations? Allow Jus Privatum to Help
The list of construction and construction-related activities that require the business to join an SRO is long and rather complicated. In order to assess your activities and determine if you must join an SRO, you may need the help of an experienced corporate attorney in Russia. The attorneys at Jus Privatum will help you understand the requirements of an SRO, select from among the hundreds of existing SROs, and apply for membership so that you may conduct the surveying, construction, or design activities required by your business. Connect with us through the link on this page and we will be in touch shortly.