The Association of Builders of Russia (ABR) will celebrate its 2nd anniversary in June 2007. ABR was formed by large and medium-sized construction companies. The situation required the unification of the main players, since it is practically impossible to form the conditions of work in the market alone, so ABR was created, which today performs three main functions:
• lobbying the interests of its members;
• legal support for the entire legislative base related to construction;
• investment and construction activities.
Among the members of ABR there are banks: VTB and about 18 more Russian banks. We consider individual investment contracts and help our members conclude agreements on them.
– Can you highlight any areas of construction that will lead the Russian market in the near future?
I would not give priority to any particular area now. Today, the market itself determines what is most in demand. An example of a difficult situation with the development of the national project «Affordable and Comfortable Housing» shows that the market is of little interest in this area, because the main task of any commercial structure is to make a profit, and not to solve national issues. However, the construction community cannot stand aside from solving this problem. The main difficulty is that until a normal dialogue between the state and business is built, there are no rules of the game on these construction sites. And instead of apartments getting cheaper, they are only becoming more and more expensive. As an example, panel housing construction, which, in theory, should be the cheapest, and today the price per square meter in Moscow has already exceeded 4,000 dollars. Today, ASR has developed a solution to this problem, which is reflected in the brochure «Housing Sphere in the Russian Federation. A New Approach to Forming Housing Policy.» It reflects all the answers to the main questions — what and where to build? Therefore, I believe that the market itself will not turn towards this national project; the state must help it establish partnerships with business. Construction companies must build not only commercial properties and luxury residential buildings, but also “affordable housing.” Perhaps, there will not be much income for them there, but at the same time, companies could receive additional sites from the state, where it will be possible to build more commercially profitable properties.
– What other tasks does the association set for itself?
Of course, issues related to personnel training are very important. With the increase in construction volumes, it can be assumed that soon there will be no one to build – it will be difficult to find foremen, craftsmen, and so on. We are monitoring this problem very closely.
– In the summer of 2007, mandatory licensing of construction activities should be abolished. How would you comment on the state of affairs with licenses?
This is not entirely true: the issuance of new licenses will be suspended in the summer, and companies that received licenses earlier will continue their activities. In fact, this is the most painful and difficult issue for the construction industry. Today, according to the issued licenses, we have 270,000 companies. As an example, we can compare the situation with construction in China, where 46 thousand construction companies built 1.3 billion square meters of housing in 2005. And in Russia, 270 thousand companies built only 43.5 million square meters. As you can see,
quantity does not always determine quality. And today, the ASR is lobbying for a law on self-regulation in construction, which will help to leave only those companies on the market that can really build.
– And how will licensing develop then?
I think that it is necessary to switch to a system of issuing certificates here. Certification of the quality of work, building materials, training of specialists. And this also concerns the engineering equipment of buildings — energy-saving equipment, metering systems. We are very seriously engaged in small-scale energy. This is connected, first of all, with the shortage of electricity and heat in 21 regions. A pool of companies has been created that is engaged in the construction of gas-piston and gas-turbine units with the support of RAO UES.
– How do you think the development of technical regulations will develop?
There are many questions surrounding the main technical regulation – “Safety of Building Operation”. It is necessary to separate the safety of building construction and its operation. We believe that the main task is to build qualitatively and reliably, so that the building meets all requirements for a period of 50 years. And operation is a derivative of construction. Today, large organizations are switching to property management with the help of management companies. From my point of view, this is very correct. For example, objects under the management of MiraxService “Golden Keys” or objects of “Don-Stroy”. All vital
technologies in buildings (fire extinguishing, signaling and communication, elevator management, etc.) require highly qualified specialists. If you look at the approach of MIRAX GROUP in the Federation complex, their management company is formed and takes part in the construction process from the very beginning of construction, from the moment of pouring concrete. They know what is happening at each section of the building construction. Of course, such an approach in the organization of the operation service has a great future.
– It is obvious that Russia can soon be expected to join the WTO. What awaits the Russian construction market after this event?
The most important task that our builders and housing and communal services representatives must solve is the adoption of their own regulatory framework, which, unfortunately, does not exist today. If this does not happen, Russian companies will be disadvantaged by foreign competitors, and for many this may even lead to collapse.
This problem will become key after Russia joins the WTO.
– How will things be with the application of, say, European building codes on the Russian market after joining the WTO? Will they not be imposed on us?
If Russia joins the WTO, we will be obliged to comply with their standards. Therefore, self-regulation may be a way out of the current situation. If a company wants to enter the market, all aspects of its activities are considered: facilities built in the last 2-3 years, the presence of a design team, the quality of construction, the presence of technical groups and, most importantly, the financial condition of the company. This approach will allow structuring the market and allowing only proven companies to participate in large-scale projects. We have already created a mechanism for working out this issue. The solution to such problematic tasks will seriously stimulate all construction companies and only those who are truly capable of bearing all types of responsibility, including financial responsibility, will remain on the market.
– What are ASR’s plans for participation in the construction of Olympic facilities in Sochi?
We have not yet participated there directly, but we are invited to build gas-piston and gas-turbine units to provide capacity, as well as to build unique facilities. Without a doubt, the members of the association can cope with these tasks.
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