Uncompleted construction work in the Russian Federation: causes and remedies

Russian Presidential Academy of National Economy and Public Administration, Department of Investment and Construction Business and Real Estate Management, Moscow, Russian Federation

¹ Corresponding author: silka-dn@ranepa.ru

Abstract

Uncompleted construction work is a major issue for the sector and the economy as a whole. According to Russia’s Accounts Chamber, the current average figure for state-funded projects in Russia in this respect is 30% (as much as 70% in some regions).

As a possible solution, this paper suggests using a system of surveys of participants in construction activity in order to have enough information for an analysis. In addition, the paper draws attention to the following important characteristic of construction – the critical importance of the planning stage. This is where a large number of regulatory instruments are used. There is a need to develop the nation’s corresponding regulatory framework at an advanced pace. Indeed, if construction work on a site cannot be completed and is discontinued, it may well cost as much to resume work on that site as it would to begin work on a new project. In-depth audits of the regulatory framework must begin with the planning stage. Any innovations in the regulation system must be assessed via two-way communication. The article was written on the basis of the RANEPA state assignment research program.