VITALY KOROLEV: RUSSIAN GOVERNMENT PASSED DOCUMENT THAT WILL DECREASE PRICES MANAGING APARTMENT BLOCKS AND CREATE COMPETITIVE ENVIRONMENT
The Decree is aimed at pursuing the Road Map for competition development
The Housing Code specifies that if a house has not chosen a management method for six months when it is a new house or a managing company (MC) terminated managing, the local authorities hold an open tender to select a MC in order to manage an apartment block (AB).
The tender rules used to require that a tender organizer must include in the tender documentation, in particular, a list and the costs of additional works and services to maintain and repair common facilities of AB premises owners.
The overall costs of such works and services announced by a bidder were a criterion for determining the tender winner. The contract prices for managing an apartment block and, accordingly, the costs of the housing service do not change due to tenders. The winner determines a list of additional works and services and undertakes an obligation to carry out the proposed additional works at a fee, specified in the tender documentation.
“Practice of FAS and other authorities showed, however, that the tender winners not always performed additional services executing the contract. Also, they intentionally included such services to win the tender”, informed Head of FAS Department for Regulating the Housing-and-Utility Complex, Alexei Matyukhin. “So managing companies received funds from homeowners, but did not carry out additional works”.
The Decree makes amendments to the Rules: step-by-step reduction of the contract price for managing apartment blocks; excluding the criterion for determining tender winners on the basis of the costs of additional works and services for managing and repair AB common property.
“The purpose of the decisions is to form a competitive environment at tenders for selecting managing companies of apartment blocks, reduce prices for managing them and, as a consequence, financial burden upon apartment owners, attract bona fide companies to this market”, emphasized Deputy Head of FAS Vitaly Korolev.