The rapid growth and development of the construction industry led to the emergence of a new form of work organization and control in it – self-regulatory organizations (SROs). Unlike the state form of control over the activities of commercial firms, self-regulation brings the level of quality of work performed and their safety to a fundamentally new level.
Essence of SRO
A self -regulatory organization is such an organization of activities in which each participant who entered into it is responsible for his actions not only to every member, but also is responsible for their actions. This “mutual responsibility” allows you to effectively control and regulate the activities of all members of the organization.
Strictly speaking, SRO is a legal form of non-profit partnership of construction organizations, firms, contractors and other performers. Its main goal is to control the quality of work performed and services provided by all members of the organization, as well as control over the implementation of all legally established safety standards and rules and the prevention of possible harm as a result of construction activities.
By and large, the emergence of SROs was a response to the rapid obsolescence of the licensing system in the construction industry. Previously, issued licenses guaranteed the customer the quality of work performed. However, for each type of activity, it is necessary to obtain separate licenses, which significantly increased the cost of the final cost of work for the customer. A centralized system for issuing a license by the state has ceased to satisfy the needs of the market. Therefore, since 2010. it transferred licensing functions to the responsibility of the SRO.
Joining a non-profit partnership significantly expands the business horizons of any construction company. Membership in the SRO guarantees that the builder has a license for the activities and control over the quality and safety of his work. Thus, the company gets access to a new level of larger and more serious orders, and the customer is guaranteed the high quality of any ordered work.
Goals and objectives of the SRO
As the name implies and described above, SRO regulates the construction market by introducing special control and responsibility mechanisms of the “all for all” type. Thus, control and verification is carried out not only by third-party, independent organizations, but also by the partners of the developer themselves. This guarantees transparency and openness of any work. Not to mention monetary control and the financial side of the issue in general. With this approach, fraud is not profitable, and if it does occur, it is stopped by the SRO participants themselves.
Self-regulation in construction means that within such an organization it is mandatory to develop, implement and operate systems of rules and requirements for quality, safety of activities. Companies that do not meet or do not comply with the standards are subject to disciplinary action by other members up to and including expulsion from the organization.
SROs have the right to license construction activities, and to revoke a license in court. Therefore, participation in such an organization is beneficial for the company. In addition, SROs actively help to improve the skills of their members, often provide insurance services, and play an active role in raising the awareness of their members.
Any company who wants to engage in construction activities in any form should be a member of any SRO. All SRO members are legal entities. Employees of such a company annually take courses that improve their skills. Thus, membership allows you to guarantee a high level of work and services provided.
