Construction Industry

Delegated self-regulation is that the State has some of the powers inherent in him, the body controlled by members of the group, which is the subject of management – the so-called delegated government. The model provides for the delegation of powers of the state of licensing, supervision and control of the activity, which the state can do yourself, a State has control over the 'access' to the profession in order to meet the challenges facing the state with the introduction of licensing. This model is used in the regulation of certain professions (Lawyers, doctors, accountants, builders), where the law provided for licensing, that is, in this area legislatively established inability to engage in activities without being a member of the CPO or not observing its rules. SRO in the building just fell into that category. In this case the state itself loses its right to act in areas of authority for which it has delegated. As a result of this delegation of SROs construction are a sort of monopoly power.

The state chooses a path of economic considerations, because the objects of regulation are more rich experience to make decisions about what should be regulation in this area, and in addition, the government minimizes the costs associated with regulation. Delegation of powers of the state of SRO in the building is subject to the rules on which to build relationships between the state and self-regulatory body: the functioning of SRO is based on a clear indication in the legislation of mandatory conditions and requirements for SRO. These requirements can be expressed or approval of certain state codes, standards, mandatory consultation with the state of documents on which the act of SRO in the building, or in specifying the law mandatory conditions that must be configured for internal documents. Delegation of authority can provide and the conditions of their termination, and restoration of state authority in this area fully created SRO structure in the building must meet certain principles, preventing their transformation into professional associations. Failure to follow these principles in the construction of SROs are transformed into a closed, non-transparent system, which ultimately leads to a loss of public trust has a negative impact on the relevant market sector and ultimately lead to the discrediting of the idea of self-regulation.

Tags: ,
| October 15th, 2011 | Posted in General |

Comments are closed.