OREANDA-NEWS. On 1st July 2010 comes into force No.624 Order of the Ministry of the Russian Federation on Regional Development (Minregion Russia)*, which approved the List of works affecting safety of capital construction projects. In particular, the document abolishes the previous order of the Ministry (No.274), which approved a wider List of works and caused serious concerns to a number of participants of the construction market and industry organizations, reported the press-centre of FAS Russia.

On 1st January 2010 came into force amendments to the Urban Development Code of the Russian Federation and some legislative acts of the Russian Federation, according to which construction organizations are not able to carry out construction works, included in the List, without obtaining an appropriate permit-to-work from a self-regulated organization (SRО).

No.624 Order of Minregion Russia abolishes the earlier issued Order (No.274) and considerable shortens the List of works on engineering survey, front-end engineering and design, construction, reconstruction, capital repair of capital construction projects, that affect safety of capital construction projects, which require SRO permit-to-work. Also a significant number of the types of work included in the List require a permit-to-work only if carried out on highly dangerous, complex and unique objects (specified in Article 48.1 of the Urban Development Code of the Russian Federation).

On 27th November 2009, FAS Russia initiated a case against Minregion Russia for issuing No.274 Order. The case was initiated upon numerous petitions from construction companies, construction associations and small businesses expressing their utmost concern about unreasonably, in the petitioners' opinion, high number of the types of work included in the List. A similar position was taken by the Russian Ministry of Economic Development.

Analysis of No.274 Order showed that considerable number of the types of work included in the List did not fit the criteria of "affecting safety of capital construction projects". It could lead to restriction of competition; in particular, small businesses that could not afford a fee to the compensation fund to join a self-regulatory organization could be pushed away from the market by large construction companies. The position of FAS Russia and the Russian Ministry of Economic Development was supported by Deputy Head of the Chairman of the Government of the Russian Federation Dmitry Kozak.

"As a result of timely reaction to numerous petitions of small and medium businesses that could not freely exercise economic activities on the construction market, and joint actions of the Government of the Russian Federation and government agencies, a new List of works is approved that reliefs a considerable number of companies from the burden to obtain SRO permit-to-work, - effectively opening the market", said Stats-Secretary Andrey Tsarikivsky, Deputy Head of FAS Russia.

* No.624 Order of the Ministry of the Russian Federation on Regional Development of 30th December 2009 "On approving the List of the types of work on engineering survey, front-end engineering and design, construction, reconstruction, capital repair of capital construction projects, which affect safety of capital construction projects".