NEW DEVELOPMENTS IN CONSTRUCTION SHARING
NEW DEVELOPMENTS IN CONSTRUCTION SHARING
Date: May 19, 2023
Time: 4:39 p.m.
EMERGING CHANGES IN CONSTRUCTION SHARING
Insights from our collaborator "FinJust Consult" and legal advisor to the JIA Business Association, Kalygul Saliev (@saliev_kalygul), regarding the implications of newly introduced regulations and potential problem-solving approaches:
Instituted by the government's proposal:
🔸 Construction companies undertake projects at their own expense.
🔸 Shareholders deposit funds into a bank.
🔸 The bank transfers the funds to the company only upon project completion.
❌ Opposition from construction companies:
Approximately 70-80% of construction firms express incapacity to independently finance apartment building projects.
The anticipated outcomes of this proposal include:
▪️ Elevated risk of construction companies declaring bankruptcy,
▪️ Ongoing construction interruptions,
▪️ Escalation in housing costs,
▪️ Consolidation of the construction sector,
▪️ Erosion of competitive market dynamics,
▪️ Diminished construction quality,
▪️ Restricted property accessibility primarily to the affluent segment of society.
Proposed resolution to the issue:
🔸 Establishment of a registry encompassing reputable construction enterprises.
🔸 Effective alignment of legal frameworks.
🔸 Addressing concerns of construction safety through comprehensive regulations.
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