SRO: decoding, functions, responsibility and admission of SROs

SRO is a non-commercial partnership, whose main task is to regulate the activities of the members of the association. Explanation of the abbreviation SRO is a self-regulating organization.

The basic provisions on what SRO is, are set out in the text of Law No. 315-FZ "On Self-Regulating Organizations", adopted in 2007. The Urban Development Code of the Russian Federation stipulates which enterprises should join the SROs and their requirements, specifies the rights and obligations of organizations and other aspects.

Why do you need SRO

Since January 2009, the state has transferred to self-regulating organizations part of its functions to supervise and monitor the conduct of activities of construction companies. SROs serve for a qualitatively new organization of supervisory activities. For example, earlier, for a company to take up the erection of a building, it needed to obtain a license from the state for certain types of work. Now the contractor gets the admission from the SRO.

Types of SRO in the construction sector

Self-regulating organizations are formed on the principle of the main line of activity of participating companies. So, distinguish:

- SRO in construction - members of the organization are engaged in construction, reconstruction and major repairs of various facilities. Such SROs develop regulatory documents in accordance with Art. 55.5 of the GRK RF, and also monitor their execution.

- SRO in the design - members of these organizations have the right to develop architectural and construction projects.

- SROs in surveys (engineering) - participants of these organizations are engaged in work on the analysis of conditions on land for construction, approval of 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 publicly available, therefore, before starting cooperation with any company, it is easy to verify its membership in the SRO and the reality of the organization itself.

What is the admission of CPO

Admission SRO - a document that confirms the right of the company to conduct certain types of work. Such documents are issued by self-regulating organizations after careful examination of the activities of participants and their business reputation. The SRO is interested in accepting only trustworthy organizations into its ranks and issuing permits, since it is the self-regulating organization that will be liable in the event of any problems.

To join the SRO and obtain admission, it is necessary to provide a list of documents not only about the company itself, but also about the professional level of employees. The basic list is fixed by the legislation, however, the SRO itself has the right to demand additional documents. For example, a number of SROs require documentation of the projects submitted, customer feedback, and so on.

The validity of the SRO admission is not limited to a time frame. An enterprise can engage in its activities as long as it is in the organization.

Types of Tolerances

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

• Tolerances confirming the company's right to conduct standard works;
• Tolerances permitting work in difficult conditions or at hazardous facilities.

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

• Tolerances for the preparation of project documentation;
• Permissions for engineering works;
• Tolerances for the implementation of restoration, repair and construction work at various sites.

Each field of activity implies the obligatory observance of certain instructions, rules and requirements, which is fixed by the admission. The certificate also confirms the compliance of the level of professional education of employees with the company and their ability to perform or manage certain types of work.

The advantages of having a tolerance

First of all, SRO admission is a confirmation of the technical, financial and professional capabilities of the company to carry out specific works.

Admission SRO allows:

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

Control over the activities of the SRO and the issuance of permits are carried out by public authorities.

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

• To get it you need to provide a minimum of documents that do not need to be certified by a notary;
• Registration of the certificate takes a minimum of time;
• When getting a re-certificate, accelerated procedures are provided;
• The professional zone of responsibility of contracting companies is growing.

Most of the documents that must be submitted for clearance are statements and questionnaires. When issuing an admission, a full list of all types of transactions performed by the enterprise, information on the qualification level of employees, insurance policies and other important information are also provided.

Termination of SRO admission

The provided certificate (if it is not temporary) does not have any temporary or territorial restrictions of the action. However, there are a number of cases where its action can be stopped:

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

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

- in case of non-elimination of revealed violations in the activities of the company in the process of its verification;

- when the company is brought to disciplinary responsibility;

- with the appropriate court decision.

Implementation of activities without admission

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

If an enterprise works without a permit and does not have a self-regulatory organization, then for him it can have a number of consequences:

- if the quality of the works performed by the company can affect the safety of the structure, then it is brought to administrative responsibility and fined;

- If people are injured in the work, the company is brought to criminal liability;

- If professional norms were repeatedly violated, the company can be liquidated.

In view of such perspectives, before starting the construction work, you should check the availability of all necessary permits.

SRO Functions

The main functions of self-controllers are:

• Drafting requirements for companies wishing to join SROs, as well as carrying out professional activities within the organization;
• Appointment and application of disciplinary actions against participants in the framework of legislation;
• Settlement of disputes by means of arbitration courts between the participants of the organization, participants and customers and other persons provided for by law;
• Representation and protection of the interests of companies in front of local and state authorities;
• Monitoring and analysis of the activities of participants on the basis of the reports they provide;
• Organization of training, advanced training, attestation of employees, certification of goods and services of companies;
• Information support of participants, publication of information on the activities of companies in the established manner.

Rights and duties of SROs

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

• Possibility of challenging decisions of all state bodies;
• Participation in the drafting of federal laws directly related to the activities;
• The provision to the government authorities of their own developments and proposals for the development of the industry.

The duties of SROs are spelled out in the legislation and include regular monitoring of the activities of all participants, as well as monitoring compliance of participants with the requirements of legislation.

Entry into SRO

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

How to choose SRO

The process of searching and selecting an SRO may take a different amount of time depending on the region and the number of self-regulating organizations on its territory. When studying information on associations, attention should be paid to the following points:

1. List of participants. Namely, whether there are large companies among them. In their absence, it is necessary to study the activity of this SRO more thoroughly.
2. Reviews. If there are censures to the activities of the SRO, the feedback will be able to give the basic information about it. Also you can find feedback on the work of participating companies. Such information is usually a lot, and it is quite indicative.
3. Requirements SRO to new participants. The conditions should not be too complicated, since it would be problematic to be part of this SRO under stringent requirements.
4. Site design. Design is a matter of taste, but content is the main thing. It is important how complete information is presented there, how regularly it is updated, whether news is written. Responsible SRO, as a rule, diligently conduct a site.

The more it will be possible to gather information about the activities of the SRO, the more complete the idea of the organization can be obtained. And, accordingly, there is less chance of choosing an incompetent self-regulating 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 claimants.

Usually, the procedure for accession is based on the following algorithm:

1. Filing an application.
2. Introductory and contribution to the compensation fund.
3. Payment of insurance premium of civil liability.
4. Submission of all documents confirming the professional level of the company and employees.

There are many legal companies on the market that provide services for filling out and preparing a package of documents for entry. Referring to such a company greatly facilitates the process of clearance.

Contributions at entry

According to the law, there are several types of contributions to the SRO. In different self-regulators, the amounts and the order of payment may vary.

- Entrance fee.

It is made once upon joining the organization. If the entry into the SRO is postponed within a month, the fee is refunded. The amount of the contribution can reach 100 thousand rubles or more, the usual practice is a contribution of 5 thousand rubles. Also a number of SROs to attract new members canceled the entrance fee. The amount of contributions is set each year at the general meeting of the organization.

- Membership fee.

Regular monthly fees range from 3 to 25 thousand. The amount can be changed at the general meeting, but no more than once a year. Non-payment of membership fees can be grounds for exclusion from the association.

- Contributions to the compensation fund.

Compensation fund means means of all participants of the organization intended for payment of compensations in the event that one of the participants caused damage to its activities to the customer or a third party.

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

In construction and design, the amount depends on the value of the expected amounts of contracts, in the surveyed SRO the amount is constant (for details see Tables 1 and 2).

Table 1. Contributions to the composite fund * (CF) for construction organizations

KF Compensation for harm	CF of 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 000000	More than 10 billion

Table 2. Contributions to the composite fund * (CF) for designers and prospectors

KF Compensation for harm	CF of 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 000000	Up to 300 million
1 000 000	3 500 000	4 500 000	More than 300 million

* All contributions are indicated taking into account changes to the Town-planning Code of the Russian Federation, which came into force in July 2016.

** Contributions to the CompFund of contractual obligations are paid only if contracts for the performance of works by the builder, designer, prospector will be concluded on a competitive basis (tenders, auctions). If not, then only the Compound of Compensation for Harm is paid.

In addition, each year, participants must pay for the extension of the insurance contract for SRO. As a rule, the amount is from 5 to 20 thousand rubles.

As an additional contribution SRO can assign payments to various funds or organizations. Their payment is also required.

Exclusion from SRO

As already mentioned, the company from the SRO can be excluded. The reason for considering the issue of exclusion may be the situation:

- if the monthly installments are not paid;

- in the performance of works not provided for by the permit.

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

Having transferred part 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 quality work of enterprises. SROs have become not only an effective controlling tool, but also stimulators of the industry development.

On all questions about joining the SRO and obtaining admission, you can always contact the specialists of the company "Capital Law"