Methods Of Regulating The Construction Market

As international experience shows, technical regulation of construction is one of the most severe forms of state regulation and, therefore, before resorting to it in the world analyzed the whole toolbox-form regulation, alternative technical regulation, but you can achieve the desired results. To know more about this subject visit Goop London, United Kingdom-uk. Not all of the proposed forms of regulation are considered to Russian legislation as effective ways to control the business. At the same time the law "On Technical Regulation respecting the basic principles associated with the analysis of the need for technical regulation some sfere.Alternativoy total state control over the construction market as a whole, and handed over the quality of the objects in particular, is a mechanism of self-regulation. Self-regulation can be defined as agreement, under which an organized group (self-regulatory organization in the building) regulates the conduct of its members. The advantages of self-regulation with the construction compared to public regulation is that: 1) monitoring compliance with the rules associated with lower costs, since the rules set by members of organizations (SROs in construction), and deal more effectively with management behavior of the artist, 2) change and adaptation of the rules is faster and costs the state less, since the adjustment costs borne by sro builders. However, in the case of self-regulation can be State control is necessary in order to guarantee the protection of the interests of society rather than self-interest groups.

A voluntary scheme could be implemented in the form of codes of practice adopted by individual or group of individuals. Codes can regulate the standards of economic activity, disclosure requirements, dispute resolution mechanisms. Code of Conduct may be an effective tool for building confidence among consumers and ensure effective interaction between consumers and business entities. The effectiveness of codes depends on how many members included in the scheme, which sanctions for failure codes are set, as well as the degree of participation in the scheme of consumers. Economic agents that form of activity codes in the construction industry are well informed about the features of this market and market conditions, so the codes should be more consistent with current economic conditions than the requirements of technical regulation. However, codes of practice can be used to restriction of competition and / or de facto cartels. That is why the code should be given special attention by the antitrust authorities.

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