A new version of Russian Government Resolution No. 802 comes into force. It governs the procedure for conserving capital construction projects. The document is considerably stricter, and more formal, than the version now in force.
What has changed
A decision to conserve is now mandatory. Simply stopping the work without completing the formalities is a breach. An inventory of the project is required, recording its condition, the volume of work carried out, and the design and estimate documentation. Measures are mandatory to secure the stability of the structures, to disconnect the utilities, to guard the site, and to maintain the temperature and humidity regime where that is necessary.
• Every step is recorded in the technical documentation and must be carried out on time.
• Notices to the authorities (construction supervision, the body that issued the permit, and so on) are to be given within 10 calendar days.
Failure to comply carries direct administrative liability, including under Article 19.5 of the Code of Administrative Offences, with fines and compliance orders, up to suspension of the activity.
What this means for developers
If construction is suspended for more than 6 months, it is no longer possible simply to "freeze" the project without the formalities. Previously, conservation was in substance a recommendation: it was enough to adopt a decision, name the persons responsible and take basic measures to keep the site safe. It is now a full procedure, with strict duties.
The new requirements for conservation are not merely a technical clarification of the rules. They are an element of a broader state and city policy. They are directed at reducing the number of abandoned projects, making development activity more transparent, bringing unused plots into economic use, and protecting the urban environment from "urban holes".
A project on which building work has been suspended for more than 6 months must now be officially conserved and "placed on the register" by notice to the construction supervision authorities. That brings such projects inside the legal and town-planning framework, so that their condition and their fate can be monitored.
The new requirements for conservation are not merely a technical clarification of the rules. They are an element of a broader state and city policy. They are directed at reducing the number of abandoned projects, making development activity more transparent, bringing unused plots into economic use, and protecting the urban environment from "urban holes".
A project on which building work has been suspended for more than 6 months must now be officially conserved and "placed on the register" by notice to the construction supervision authorities. That brings such projects inside the legal and town-planning framework, so that their condition and their fate can be monitored.
In substance, a project left standing idle now has only three possible outcomes: it is completed, or it is regularised through the conservation procedure, or it becomes the subject of intervention by the city. This is no longer a private problem for the developer. It is a question of the resilience and the quality of the urban environment as a whole. Sergei Pivovarchik, managing partner of Consul Group, comments.
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