SRO is a non-profit partnership whose main task is to regulate the activities of members of the association. Decoding of the abbreviation SRO is a self-regulatory organization.
The main provisions on what an SRO is are set out in the text of Law No. 315-FZ “On Self-Regulating Organizations” adopted in 2007. The Town Planning Code of the Russian Federation spells out exactly which enterprises should join the SRO and the requirements for them, the rights and obligations of organizations and other aspects are indicated.
What is a SRO for?
Since January 2009, the state transferred to self-regulatory organizations a part of its functions in supervising and controlling the activities of construction companies. SROs serve for a qualitatively new organization of supervisory activities. For example, earlier, in order for a company to take up the construction of a building, it needed to obtain a license from the state to carry out certain types of work. Now the contractor receives approval from the SRO.
Types of SRO in the construction industry
Self-regulatory organizations are formed according to the principle of the main activities of participating companies. So, they distinguish:
- SRO in construction - members of the organization are engaged in construction work, reconstruction and overhaul of various objects. Such SROs develop regulatory documents in accordance with Art. 55.5 of the Civil Code of the Russian Federation, and also monitor their implementation.
- SRO in design - members of these organizations have the right to develop architectural and construction projects.
- SRO in surveys (engineering) - the participants in these organizations are engaged in the analysis of conditions on land for construction, approving the possibility of using these sites, as well as further design and construction.
All operating SROs, as well as their participants, are entered in a special state register. In case of violations, they can be excluded from it. The registry is in the public domain, therefore, before starting cooperation with any company, you can easily check its affiliation with the SRO and the validity of the organization itself.
What is SRO tolerance?
SRO approval is a document that confirms a company's right to carry out certain types of work. Such documents are issued by self-regulatory organizations after a thorough study of the activities of participants and their business reputation. SRO is interested in accepting and issuing tolerances only to trustworthy organizations, since it is the self-regulatory organization that will be responsible in case of any problems.
To join the SRO and get admission, you must provide a list of documents not only about the company itself, but also about the professional level of employees. The main list is fixed by law, but the SROs themselves are entitled to require additional documents. For example, a number of SROs require documentation on completed projects, customer reviews, and more.
The validity of the SRO tolerance is not limited in any way to the time frame. An enterprise may engage in its activities as long as it is a member of the organization.
Types of Tolerances
According to the type of permit, two types of certificates issued by SROs are distinguished:
- tolerances confirming the company's right to carry out standard work;
- Tolerances permitting work in difficult conditions or at hazardous facilities.
Depending on the specialization, different types of tolerances are issued:
- tolerances for design documentation;
- tolerances for engineering work;
- tolerances for the implementation of restoration, repair and construction works at various facilities.
Each area of activity implies the mandatory observance of certain instructions, rules and requirements, which is secured by an admission. The certificate also confirms the conformity of the level of professional education of the company's employees and their ability to perform or manage certain types of work.
Advantages of having clearance
First of all, SRO approval is a confirmation of the company's technical, financial and professional capabilities to carry out specific work.
Tolerance of SRO allows:
- gather in one company highly qualified specialists;
- improve the quality of services provided;
- to protect the interests of companies participating in SROs, and also makes their cooperation with each other more convenient and useful.
Control over the activities of self-regulatory organizations and the issuance of approvals is carried out by state authorities.
Compared with previously issued state building licenses, admission has a number of obvious advantages:
- to receive it, you must provide a minimum of documents that do not need to be certified by a notary;
- drawing up a certificate takes a minimum of time;
- upon receipt of a second certificate, expedited procedures are provided;
- the professional area of responsibility of contracting companies is growing.
Most of the documents that must be submitted for clearance are applications and questionnaires. When making an admission, a complete list of all types of operations performed by the enterprise, information on the qualification level of employees, insurance policies and other important information is also provided.
Termination of SRO admission
The certificate provided (if it is not temporary) does not have any temporary or territorial restrictions on validity. However, there are a number of cases when its action can be stopped:
- in case of voluntary withdrawal of the company from the association;
- in the presence of another permit certificate received from another SRO;
- in the case of failure to eliminate identified violations in the activities of the company in the process of verification;
- when bringing the company to disciplinary liability;
- with an appropriate court decision.
Carrying out activities without a permit
The need for clearance for design, engineering and construction companies is determined by the specifics of their work, the reliability of which is being built and the safety of people depend on the quality of performance.
If an enterprise operates without permission and is not a member of a self-regulatory organization, this can have a number of consequences for it:
- if the quality of the work performed by the company can affect the safety of the building, then it will be held administratively liable and fined;
- if people suffered during the work, then the company is held criminally liable;
- if professional standards were repeatedly violated, the company may be liquidated.
In view of these prospects, before starting construction work, you should check the availability of all necessary permits.
SRO Functions
The main functions of self-regulators include:
- drawing up requirements for companies wishing to join the SRO, as well as the implementation of professional activities within the organization;
- the appointment and application of disciplinary action against participants in the framework of the law;
- settlement of disputes by arbitration courts between the organization’s participants, participants and customers, and other persons provided for by law;
- Representation and protection of company interests before local and state authorities;
- control and analysis of participants' activities based on the reports they provide;
- organization of training, advanced training, certification of employees, certification of goods and services of companies;
- information support for participants, publication of information on the activities of companies in the prescribed manner.
Rights and obligations of SRO
Self-regulatory organizations, having received a number of functions from the state, also acquired a number of rights and obligations. Their basic rights include:
- the ability to challenge the decisions of all government bodies;
- participation in the drafting of federal laws that are directly related to the activities carried out;
- providing government agencies with their own developments and proposals for the development of the industry.
The responsibilities of SROs are specified in the legislation and include regular monitoring of the activities of all participants, as well as monitoring the compliance of participants with legal requirements.
Joining SRO
The future of the company largely depends on the choice of SROs, so it is so important to approach this issue with all seriousness and thoroughness.
How to choose a SRO
The process of searching and selecting an SRO can take a different amount of time, depending on the region and the number of self-regulatory organizations available on its territory. When studying information about associations, you should pay attention to the following points:
- List of participants. Namely, whether there are large companies among them. In their absence, it is necessary to carefully study the activities of this SRO.
- Reviews If there are complaints about the activities of SROs, then reviews will be able to provide basic information about this. You can also read reviews on the work of participating companies. Such information is usually a lot, and it is quite indicative.
- SRO requirements for new members. The conditions should not be too complicated, since to be in this SRO with stringent requirements will be problematic.
- Website design. Design is a matter of taste, but the main thing is content. It is important how complete the information is presented there, how regularly it is updated, whether news is written. Responsible SROs, as a rule, diligently maintain the site.
The more information is collected about the activities of SROs, the more complete information about the organization can be obtained. And, accordingly, there are less chances to choose an incompetent self-regulatory organization.
How to join SRO
As a rule, the procedure for joining a self-regulatory organization is described in detail on its website along with a full list of requirements for applicants.
Usually, the entry procedure follows the following algorithm:
- Filing an application.
- Entry and contribution to the compensation fund.
- Payment of civil liability insurance premium.
- Submission of all documents confirming the professional level of the company and employees.
There are many law firms on the market that provide services for filling out and preparing a package of documents for entry. Contacting such a company greatly facilitates the clearance process.
Entry Fees
According to the legislation, the SRO provides for several types of contributions. In different self-regulators, the amount and payment procedure may vary.
- Entrance fee.
It is made once upon entry into the organization. If entry into the SRO is postponed within a month, then the fee is refunded. The amount of the contribution may reach 100 thousand rubles or more, but the usual practice is a contribution of 5 thousand rubles. Also, a number of SROs to attract new members canceled the entrance fee. Setting the amount of contributions is made every year at the general meeting of the organization.
- Membership fee.
Regular monthly installments range from 3 to 25 thousand. The amount may be changed at the general meeting, but not more than once a year. Failure to pay membership fees may be grounds for exclusion from the association.
- Contributions to the compensation fund.
Compensation fund is the funds of all members of the organization, intended for the payment of compensation in the event that one of the participants caused damage to the customer or a third party.
In 2016, a number of significant amendments to the urban planning legislation were adopted, including those related to the size of contributions to compensation funds.
In construction and design, the amount depends on the value of the estimated amounts of the contracts, in the survey SRO the amount is constant (for more details, see Tables 1 and 2).
Table 1. Contributions to the fund * (CF) for construction organizations
CF indemnification | CF contractual obligations ** | TOTAL | Limitations on the amount of the contract (any) |
| 100,000 | 200,000 | 300,000 | Up to 60 million |
| 500,000 | 2,500,000 | 3,000,000 | Up to 500 million |
| 1,500,000 | 4,500,000 | 6,000,000 | Up to 3 billion |
| 2,000,000 | 7,000,000 | 9,000,000 | Up to 10 billion |
| 5,000,000 | 25,000,000 | 30,000,000 | More than 10 billion |
Table 2. Contributions to the fund * (CF) for designers and prospectors
CF indemnification | CF contractual obligations ** | TOTAL | Limitations on the amount of the contract (any) |
| 50,000 | 150,000 | 200,000 | Up to 25 million |
| 150,000 | 350,000 | 500,000 | Up to 50 million |
| 500,000 | 2,500,000 | 3,000,000 | Up to 300 million |
| 1,000,000 | 3,500,000 | 4,500,000 | Over 300 million |
* All contributions are indicated subject to amendments to the Urban Planning Code of the Russian Federation, which entered into force on July 2016.
** Contributions to the Compound Contractual Obligations Fund are paid only if contracts for the performance of work by the builder, designer, prospector are concluded on a competitive basis (tenders, auctions). If not, only the Compensation Compensation Fund is paid.
In addition, each year, participants must pay for the extension of the insurance contract for the SRO. As a rule, the amount is from 5 to 20 thousand rubles.
As additional contributions, the SRO may assign payments to various funds or organizations. Their payment is also required.
Exclusion from SRO
As already mentioned, a company can be expelled from an SRO. The reason for considering the issue of exclusion may be the situation:
- in case of non-payment of monthly installments;
- when carrying out work not provided for by the admission.
The decision to expel from the organization can be made and approved only at the general meeting.
By transferring some of its functions to self-regulators and making membership in them mandatory for construction companies, the state was able to create conditions for more comfortable and high-quality work of enterprises. SROs have become not only an effective controlling tool, but also stimulants for the development of the industry.
For all questions about joining the SRO and obtaining admission, you can always contact the specialists of the company “ "