The construction costing standards in the Murmansk region are developed by private companies

The antimonopoly body opened a case on a fact of restricting competition on the regional markets of developing and selling computer costing programs and design specifications and estimates.

Although the Ministry of Construction and Regional Development of the Murmansk region has powers to develop the regional costing standards and ensure access to them, it failed to perform its functions independently: the standards for estimating the construction costs out of budgetary funds were being developed by private companies.

The costing standards were disseminated via a “NASI” subsidiary – “Gosnormativ” Ltd. that charges a fee for databases with the standards as for an IP object.

The data were obtained upon the outcome of an antimonopoly investigation carried out by Murmansk OFAS following FAS instructions.

Murmansk OFAS opened a case against the Ministry of Construction and Regional Development of the Murmansk region, “Regional Construction Pricing Centre” Ltd., the “National Association of Estimated Pricing and Value Engineering” Non-Profit Organization, “Gosnormativ” Ltd. upon elements of violating Clause 4 Article 16 of the Federal Law “On Protection of Competition” (competition-restricting agreements concluded by the authorities).

“Opening the case by Murmansk OFAS is a result of system-wide efforts by the antimonopoly bodies to expose and suppress the facts of restricting access to the regional costing standards. Instructions to carry out such investigations are sent to all regions across Russia. Today antimonopoly cases are opened in 31 region, decisions are made in 7 regions, and in 5 regions warnings are issues to stop violating the antimonopoly law”, pointed out the Head of FAS Anti-Cartel Department, Andrey Tenishev.

Reference:

In August 2015 FAS found that Gosstroi, the Ministry of Regional Development of te Russian Federation, the Ministry of Construction, the “Federal Centre for Pricing in Construction and Construction Materials Industry” Federal Autonomous Institution, the “Federal Centre for Pricing in Construction and Construction Materials Industry” Federal Autonomous Institution (“FTsTsS”), “Gosstroismeta” Ltd., the “National Association of Estimated Pricing and Value Engineering” Non-Profit Organization (“NASI”), “Stroiinformizdat” Ltd. and “Gosnormativ” Ltd. violated Article 16 of the Federal Law “On Protection of Competition” Then FAS instructed its regional bodies to conduct investigations on the market of developing and selling computer programs on establishing construction costs documentation, developing and selling design specifications and estimates in the regions.