Promoting Democracy in Algeria

Financial Requirement

Mandatory condition for the establishment of SROs in construction is the existence of a compensation fund, formed by contributions from the members of the sro. For SROs in the area of engineering research and training project Documentation data contributions should not be less than 500 thousand rubles to one member. Accordingly, their minimum compensation fund should be equal to 25 million rubles. Compensation Fund, sro construction should be formed in an amount not less than 1 million rubles for one member and be at least 100 million rubles. If the documents sro strotelstve a requirement to insure its members, civic responsibility, which may occur in the event of injury due to the shortcomings of works affecting the security of capital construction, the financial requirement is reduced: one member of the engineering survey and design companies – 150 thousand rubles, sro Building – 300 thousand rubles. Read more here: CBS.

As we see, on the one hand, the financial qualifications for entry into the sro in the building is very high. Recalling also the mandatory data financial cost to the each, even a small narrow profile of the company, we can conclude that not all who work in the construction sector entities the financial requirement will be available. On the other hand, on its own compensation fund, formed due to the minimal contribution may be insufficient to compensate for the harm caused by deficiencies of works affecting the security of capital construction. Thus, damage the error of the designer may at times exceed 25 million rubles. Also, speaking of the financial obligations of the members of the sro in the building, must be aware of how accessible will the construction market for new established companies. Would not such a high financial constraint qualification for entry into the sphere of construction of new participants and, consequently, the reason for monopolizing the market for construction services? So, with such a significant cost of adequacy of compensation fund yet in doubt. Insurance is liability entails the payment of insurance companies under the treaty of contributions are not subject to refunded under any circumstances, and thus increases the cost of service organizations of the building complex. A compromise approach is appropriate to create a system of collective insurance under the Law on the sro or the formation of certain insurance pools for industry-wide level, which would unite the financial resources of all these companies the industry.

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