SRO: decoding, functions, responsibility and admission of SRO

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

SRO is a non-profit partnership whose main task is to regulate the activities of members of the association. Deciphering the abbreviation SRO - self-regulatory organization.

The main provisions on what SROs are are set out in the text of Law No. 315-FZ “On Self-Regulatory Organizations”, adopted in 2007. The Town Planning Code of the Russian Federation stipulates which enterprises should join the SRO and the requirements for them, the rights and obligations of organizations and other aspects.

Why do I need SRO

Since January 2009, the state has transferred to self-regulatory organizations part of its functions of supervision and control over the activities of construction companies. SROs serve for a qualitatively new organization of supervisory activities. For example, in the past, in order for a company to undertake the construction of a building, it had to obtain a license from the state to carry out certain types ofworks. Now the contractor receives a permit from the SRO.

Types of SROs in the construction industry

Self-regulatory organizations are formed according to the principle of the main activity of the participating companies. So, they distinguish:

- SRO in construction - members of the organization are engaged in construction work, reconstruction and overhaul of various facilities. 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.

- SROs in surveys (engineering) - the participants of these organizations are engaged in carrying out work on the analysis of conditions on land plots 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 register is in the public domain, therefore, before starting cooperation with any company, you can easily check whether it belongs to the SRO and the validity of the organization itself.

What is SRO approval

SRO approval is a document that confirms the 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 the participants and their business reputation. The SRO is interested in accepting into its ranks and issuing permits only to credible organizations, sohow exactly the self-regulatory organization will be held accountable in case of any problems.

To join the SRO and obtain 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, however, SROs themselves have the right to require additional documents. For example, a number of SROs require documentation of completed projects, customer reviews, and so on.

The action of the SRO admission is not limited by any time frame. An enterprise can carry out its activities as long as it is a member of the organization.

Types of tolerances

By the type of permit, there are two types of certificates issued by the SRO:

• tolerances confirming the company's right to carry out standard work;
• tolerances that allow work in difficult conditions or at hazardous facilities.

Depending on the specialization, different types of permits are issued:

• tolerances for drawing up project documentation;
• tolerances for engineering work;
• permissions for restoration, repair and construction work at various facilities.

Each field of activity implies the obligatory observance of certain instructions, rules and requirements, which is secured by a permit. 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.

Benefits of clearance

BeforeFirst of all, SRO approval is a confirmation of the technical, financial and professional capabilities of the company to carry out specific work.

SRO admission allows:

• gather highly qualified specialists in one company;
• improve the quality of services provided;
• to protect the interests of companies participating in the SRO, and also makes their cooperation with each other more convenient and useful.

Control over the activities of SROs and the issuance of permits is carried out by state authorities.

Compared to previously issued state construction licenses, the permit has a number of unconditional advantages:

• to obtain it, you must provide a minimum of documents that do not need to be notarized;
• issuing a certificate takes a minimum of time;
• upon receipt of a repeated certificate, accelerated procedures are provided;
• the professional area of responsibility of contractor companies is growing.

Most of the documents that must be provided for admission are applications and questionnaires. When applying for a permit, a complete list of all types of operations performed by the enterprise, information about the qualification level of employees, insurance policies and other important information is also provided.

Termination of SRO approval

The certificate provided (if it is not temporary) does not have any temporal or territorial validity restrictions. However, there are a number of cases where its effect can bestopped:

- in case of voluntary withdrawal of the company from the association;

- if there is another permit certificate received from another SRO;

- in case of failure to eliminate the identified violations in the company's activities during its audit;

- when bringing the company to disciplinary responsibility;

- with appropriate court decision.

Carrying out activities without permission

The need for permits for design, engineering and construction companies is determined by the specifics of their work, the quality of which affects the reliability of facilities under construction and the safety of people.

If an enterprise operates without permission and is not a member of a self-regulatory organization, then this may 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 is brought to administrative responsibility and fined;

- if people were injured during the work, then the company is held criminally liable;

- if professional standards have been repeatedly violated, the company may be liquidated.

In view of such prospects, before starting construction work, it is necessary to 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;
• appointment and applicationdisciplinary action against participants under the law;
• dispute resolution through arbitration courts between members of the organization, participants and customers and other persons provided for by law;
• representing and protecting the interests of companies 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 about the activities of companies in the prescribed manner.

SRO rights and obligations

Self-regulatory organizations, having received a number of functions from the state, have also acquired a number of rights and obligations. Their main rights include:

• opportunity to challenge the decisions of all state 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 obligations of the SRO are prescribed in the legislation and include regular monitoring of the activities of all participants, as well as monitoring the compliance of participants with the requirements of the law.

Joining the SRO

The future of the company largely depends on the choice of SRO, therefore it is so important to approach this issue with all seriousness and thoroughness.

How to choose an SRO

The process of finding and selecting an SRO cantake a different amount of time depending on the region and the number of self-regulatory organizations present on its territory. When examining union information, pay attention to the following points:

1. Composition of participants. Namely, whether there are large companies among them. In their absence, it is necessary to carefully study the activities of this SRO.
2. Reviews. If there are complaints about the activities of the SRO, then the reviews will be able to provide basic information about this. You can also read reviews about the work of participating companies. There is usually a lot of such information, and it is quite revealing.
3. SRO requirements for new members. The conditions should not be too complicated, since it will be problematic to be a member of this SRO with strict requirements.
4. Website design. Design is a matter of taste, but the main thing is the content. It is important how complete the information is presented there, how regularly it is updated, whether news is written. Responsible SROs tend to maintain the site diligently.

The more information you can collect about the activities of the SRO, the more complete picture of the organization you can get. And, accordingly, there is less chance of choosing an incompetent self-regulatory organization.

How to join the SRO

As a rule, the procedure for joining a self-regulatory organization is described in detail on its website, along with a complete list of requirements for applicants.

Usually, the entry procedure follows the following algorithm:

1. Apply.
2. Introduction of admission and contribution tocompensation fund.
3. Paying the civil liability premium.
4. 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. Applying to such a company greatly facilitates the process of obtaining an admission.

Admission fees

According to the law, the SRO provides for several types of contributions. In different self-regulators, the amount and procedure for payment may vary.

- Entry fee.

Produced once upon joining the organization. If within a month the entry into the SRO is postponed, the fee is returned. The amount of the contribution can reach 100 thousand rubles or more, but the usual practice is a contribution of 5 thousand rubles. Also, a number of self-regulating organizations canceled the entrance fee to attract new members. The amount of contributions is set every year at the general meeting of the organization.

- Membership fees.

Regular monthly contributions range from 3 to 25 thousand. The amount can 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.

The Compensation Fund is the funds of all members of the organization intended to pay compensation if one of the members has caused damage to the customer or a third party through their activities.

In 2016, a number of significant amendments were adopted inurban planning legislation, including those relating to the amount of contributions to compensation funds.

In construction and designing, the amount depends on the cost of the estimated amounts of contracts, in survey SROs, the amount is constant (for more details, see tables 1 and 2).

Table 1. Contributions to the Compfund (CF) for construction organizations

KF compensation	CF contractual obligations	TOTAL	Restrictions 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 000000	More than 10 billion

Table 2. Contributions to the Compfund (CF) for designers and surveyors

KF compensation	CF contractual obligations	TOTAL	Restrictions 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 000000	Up to 300 million
1,000,000	3,500,000	4 500000	More than 300 million

All contributions are subject to changes to the Town Planning Code of the Russian Federation, which entered into force in July 2016.

Contributions to the Compensation Fund of contractual obligations are paid only if contracts for the performance of work by a builder, designer, surveyor will be concluded on a competitive basis (tenders, auctions). If not, only the Indemnity Compensation Fund is paid.

In addition, every year participants need to pay for the renewal 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, the company may be excluded from the SRO. The reason for considering the issue of exclusion may be the situation:

- in case of non-payment of monthly fees;

- when carrying out work not covered by the permit.

The decision to expel from the organization can only be made and approved at the general meeting.

By transferring part of its functions to self-regulators and making their membership 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 stimulators for the development of the industry.

For all questions about joining an SRO and obtaining admission, you can always contact the information and consulting portal of self-regulatory organizations Register of SROs.