The Business Ombudsman Council provides recommendations to state bodies on the basis of individual cases and in accordance with published systemic reports. Here we have collected information on the implementation status of systemic recommendations only.
Report name
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Issued recommendations
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Execution status
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Systemic report "Reducing the risk of corruption and attracting investment to the construction industry" |
To set up information and consultation centers at every one of its branch offices to provide assistance to developers, what is a key element in eliminating the risks of rejection when registering notices with minor “technical” errors on the part of the developer. SACI |
Implemented
— comments:
The recommendation was implemented by means of enabling advice with SACI specialists at the administrative service centers on a daily basis. More at the SACI website - http://www.dabi.gov.ua/otrymaty-konsultatsiyu/
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SACI |
Implemented
— comments:
Regulation of the SACI, approved by the Resolution of the CMU No.294 dated 07 September 2014. (as amended by the Resolution of the Cabinet of Ministers of Ukraine No.408 dated 07 June 2017), was amended respectively.In accordance with subpara. 12 of para. 4, SACI initiates holding the officials of supervision objects disciplinary liable. Subpara. 5 of para. 11 stipulates that the Head of SACI reports to the Vice Prime Minister of Ukraine - the Minister of Regional Development, Construction and Residential Services on carrying out SACI plans and tasks assigned thereto, on elimination of violations and shortcomings, discovered during inspections of SACI, its territorial branches, as well as on holding officials liable for committed violations.
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To extend its Inspection Plan, which is published on its official site, with a section that lists the warnings issued to developers during inspections, the reasons for any fines charged, and the results of developers' eliminating violations, without waiting for the adoption of Draft Law No.2418a "On amending the Law of Ukraine 'On the basic principles of state supervision and oversight of commercial activities" to liberalize the system of state supervision and oversight of commercial activities" dated 21 July2015. This Draft Law provides for setting up an integrated, automated state supervision and oversight system that will include inspection schedules for all government agencies and the results of any measures taken. SACI |
Implemented
— comments:
The State Regulatory Service of Ukraine together with the BRDO has launched a pilot module for planning state supervision (control) IAS DNA.
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SACI |
Implemented
— comments:
Inspection plans are regularly published at the SACI website. http://www.dabi.gov.ua/potochna-diyalnist/ http://www.dabi.gov.ua/wp-content/uploads/2016/09/Plan-perevirok-LU_2-kv-2017-1.pdf
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SACI |
Implemented
— comments:
Amendments were made according to the Resolutions of CMU No.238 dated 10 March 2017 and No.402 dated 7 June 2017.
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SACI |
Implemented
— comments:
Since the recommendation has been issued, no Complaints in this regard have been received by the Council.
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Ministry of Regional Development, Construction and Residential Services |
Implemented
— comments:
http://www.dabi.gov.ua/detsentralizatsiya/ 65 newly created state architectural and construction controlling authorities operate locally. In accordance with p. 4 of subpara. 2 of para. 4 of the Regulation, SACI checks the legality of decisions as regards urban development activities adopted by supervisory authorities, as well as in accordance with subpara. 4 of para. 4, cancels or suspends the effect of decisions made by supervisory authorities in accordance with its powers, established by law, that violate legislative requirements as regards urban development activities, with simultaneous drawing up of a protocol in accordance with the Code of Administrative Offenses of Ukraine and subsequent disclosure of such information at the SACI official website; para. 11 stipulates that SACI shall decide on registration or return of the Declaration on object readiness for operation by means of supervision (without a right to register declarations), granting or revoking the permit for execution of construction works (wthout a right to issue a permit), and on refusal to issue a certificate (without the right to issue a certificate).
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Ministry of Regional Development, Construction and Residential Services |
Implemented
— comments:
The Order of the Ministry of Regional Development of Ukraine No.166 dated 16 July 2015 "On Amendments to the procedure for functioning of electronic system for implementation of declarative procedures in construction", which introduces access of entities to information on the procedure for implementation of declarative procedures in construction in electronic form via the website of the System: https://e-dabi.gov.ua/
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Ministry of Regional Development, Construction and Residential Services |
Implemented
— comments:
The Order of the Ministry of Regional Development of Ukraine No.118 dated 18 May 2017 "On amending the procedure for maintaining the unified register of documents that grant right to perform preparatory and construction works and certify acceptance of fully-construed objects into operation, information on return for revision, refusal to issue and cancellation of indicated documents".
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Ministry of Regional Development, Construction and Residential Services |
Implemented
— comments:
P. 7 of Art. 12 of the Law of Ukraine "On licensing various commercial activities" has been amended in accordance with the Law of Ukraine dated 26 November 2015 No.835-VIII
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To propose amendments to the Law of Ukraine "On regulating urban development activity" and several other legislative acts to replace the procedures for registering notices of commencing construction and the commissioning of buildings of average and significant liability class on commencing construction and the commissioning of buildings with permits to carry out such construction works and certificates accordingly. Ministry of Regional Development, Construction and Residential Services |
Implemented
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To work with regional administrations to determine the state of urban development documentation in specific towns and the need to develop it in order to resolve the question of adding specific expenditures to the list of those what might be covered by the State Regional Development Fund in the next budget cycle. Ministry of Regional Development, Construction and Residential Services |
Implemented
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To collaborate with local government agencies, related associations, professional business societies, and experts to identify and draft amendments to the Law of Ukraine "On regulating urban development activity" in terms of cancelling the equity contribution for developers or improving the current procedure by, for instance, authorizing the CMU to establish a universal procedure and payment for contributing the equity, to ensure that this contribution is used for the stated purpose, and to mandate local government agencies to regularly publish information about the size of accumulated contributions and the ways they are being utilized. Ministry of Regional Development, Construction and Residential Services |
Implemented
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To draft a legal act approving the technical regulation of building materials in full compliance with the EU Regulation No.305/2011, passed by the European Parliament and the Council on 09 March 2001, to establish harmonized conditions for placing building materials on the market, and repealing the Council's Directive No.89/106/EEC, in compliance with Ukraine's commitments to the Association Agreement. Ministry of Regional Development, Construction and Residential Services |
Implemented
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To propose amendments to Ukrainian land legislation to directly obligate LEBs to re-sign leasing agreements for land plots with new owners of the properties following a simplified, transparent procedure Ministry of Regional Development, Construction and Residential Services |
Implemented
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Ministry of Justice |
Implemented
— comments:
According to Clause 10 of the Resolution of the Cabinet of Ministers of Ukraine No.509, dated 12 July 2017, the public authorities in charge of the issued recommendation prepared and approved the protocol determining the structure and format of the information files to be transferred and accepted through information interaction of information systems of the State Registry of Immovable Property Rights and the State Land Cadastre. The respective technical protocol, inter alia, is aimed at creating technical opportunities for providing the state cadastral registrars with the information about the registered real rights over immovable property by granting direct access to the State Registry of Immovable Property Rights and entering data about owners and/or users of the land plot in the data recorded with the State Land Cadastre. Informational interaction functioning was initialized starting from mid-November, 2017.
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To provide clear distribution of powers between different agencies regarding the assignment of postal addresses to buildings and properties, in Sec. I "Organizational and legal basis for local government" in the Law of Ukraine "On local governance" and Part 1 "The competencies of local state administrations" in the Law of Ukraine "On local state administrations". Ministry of Regional Development, Construction and Residential Services |
Implemented
— comments:
On 20 March 2018, the Council received a letter from the Ministry of Regional Development, Construction and Residential Services dated 02 March 2018. No.7/14-2227, according whereto the last Draft Law "On amending certain laws of Ukraine regarding improvement of urban development" was elaborated (as of 04 May 2016 No.4585), which regulated the issue of assigning postal addresses to the construction sites within and outside the settlements. However, according to the letter of the CMU dated 30 December 2017 No.7532/0/2-17, the said Draft Law was withdrawn from VRU. At present, suggestions for regulating the issue of determining the procedure for providing a construction site with address are included in the Draft Laws "On amending certain legislative acts of Ukraine on improving the investment climate in Ukraine" (No.6540 dated 06 June 2017) and "On amending certain legislative acts of Ukraine in the sphere of urban development" (No.7085 dated 06 September 2017), which are included on the agenda of the seventh session of the VRU of the eighth convocation in accordance with the resolution of the VRU No.2149-VIII dated 10 March 2017. On 22 March 2018 the Draft Law "On amending certain legislative acts of Ukraine in the sphere of urban development" No.7085 dated 09 June 2017 was adopted in the first reading. At the moment, the Draft Law is being prepared for a second reading.
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To establish procedures for assigning a postal address in the Law of Ukraine "On postal communication" by: (i) designating the CMU as the authorized body to establish a procedure for assigning addresses with a complete list of documents necessary, reasons for possible refusal, and other key issues; and (ii) establishing that the term "postal address" may only be used in the context of legislation on postal services. Ministry of Regional Development, Construction and Residential Services |
Implemented
— comments:
On 20 March 2018, the Council received a letter from the Ministry of Regional Development, Construction and Residential Services dated 02 March 2018. No.7/14-2227, according whereto the last Draft Law "On amending certain laws of Ukraine regarding improvement of urban development" was elaborated (as of 04 May 2016 No.4585), which regulated the issue of assigning postal addresses to the construction sites within and outside the settlements. However, according to the letter of the CMU dated 30 December 2017 No.7532/0/2-17, the said Draft Law was withdrawn from VRU. At present, suggestions for regulating the issue of determining the procedure for providing a construction site with address are included in the Draft Laws "On amending certain legislative acts of Ukraine on improving the investment climate in Ukraine" (No.6540 dated 06 June 2017) and "On amending certain legislative acts of Ukraine in the sphere of urban development" (No.7085 dated 06 September 2017), which are included on the agenda of the seventh session of the VRU of the eighth convocation in accordance with the resolution of the VRU No.2149-VIII dated 10 March 2017. On 22 March 2018 the Draft Law "On amending certain legislative acts of Ukraine in the sphere of urban development" No.7085 dated 09 June 2017 was adopted in the first reading. At the moment, the Draft Law is being prepared for a second reading.
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To amend the Laws of Ukraine "On local governance", "On local state administrations", "On regulating urban development activities," "On framework of urban development", "On architectural activity", and "On advertising", being aimed at determining the address of the location of a construction site and further use in the context of regulation of the construction, commissioning of objects, as well as state registration of real rights to real estate. Ministry of Regional Development, Construction and Residential Services |
Implemented
— comments:
On 20 March 2018, the Council received a letter from the Ministry of Regional Development, Construction and Residential Services dated 02 March 2018. No.7/14-2227, according whereto the last Draft Law "On amending certain laws of Ukraine regarding improvement of urban development" was elaborated (as of 04 May 2016 No.4585), which regulated the issue of assigning postal addresses to the construction sites within and outside the settlements. However, according to the letter of the CMU dated 30 December 2017 No.7532/0/2-17, the said Draft Law was withdrawn from VRU. At present, suggestions for regulating the issue of determining the procedure for providing a construction site with address are included in the Draft Laws "On amending certain legislative acts of Ukraine on improving the investment climate in Ukraine" (No.6540 dated 06 June 2017) and "On amending certain legislative acts of Ukraine in the sphere of urban development" (No.7085 dated 06 September 2017), which are included on the agenda of the seventh session of the VRU of the eighth convocation in accordance with the resolution of the VRU No.2149-VIII dated 10 March 2017. On 22 March 2018 the Draft Law "On amending certain legislative acts of Ukraine in the sphere of urban development" No.7085 dated 09 June 2017 was adopted in the first reading. At the moment, the Draft Law is being prepared for a second reading.
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To include regular methodological work jointly with construction managers working at regional state administrations with the commissioners of construction works in the annual action plans regarding approaches to determine the value of a procurement item through workshops, including those funded by international technical assistance programs, and to publish recommendations that will reflect a number of key rules: Where funding for the construction of an object is expected during several years, the commissioner should organize the procurement process based on the overall expected cost of the entire works and sign a long-term procurement contract with the successful bidder that establishes that the works will be ongoing for several years.In planning procurements, it should be kept in mind that the commissioner has no right to break up the procurement subject into smaller parts to avoid holding open tenders or applying Sec. 5 of Art. 2 of the Law of Ukraine “On public procurements.”To estimate the cost of procuring works, Ukraine’s normative construction documents should be used as a guide, as they set the rules for determining the value of construction, design and survey works, and feasibility analyses of the actual plans according to the domestic standards. The one mandatory document that should be used in estimating costs is the National Standard “Rules for determining the value of construction”. This standard is mandatory when estimating costs for construction covered by budget funds, the funds of state and communal enterprises, institutions and organizations, as well as by loans guaranteed by the government. Its application has to be stipulated by contract. This means that the conditions for calculating the value of a proposition and the draft procurement contract should include the use of this standard, that is, in the conditions that establish the agreed price of the awarded contract. Where participants plan to engage subcontractors to carry out works, tender bid prices should include the cost of all proposed works contained in the tender documentation, including works that will be executed by subcontractors.To prepare procurement and tender documents, the commissioner should use a finalized working design with all necessary approvals and land issues confirmed and resolved, if required. The working phases of the project should be preceded by an explanation of any repair work in compliance with the quality control system for the relevant types of infrastructure, a feasibility study, and public discussions to identify all possible risks. Where there is no finalized working design with the necessary approvals, the recommended approach is to include a tender interview procedure to negotiate with participants and clarify any issues about the project directly during the tender process. Ministry for Development of Economy, Trade and Agriculture of Ukraine |
Implemented
— comments:
Pursuant to paragraph 7, part 1 of Article 8 of the Law of Ukraine "On Public Procurement", on the MEDT's website an information resource of the Authorized Agency was created aimed at disseminating information on the application of public procurement legislation, which allows for on-line advisory advice on procurement issues, as well as get acquainted with the generalized answers prepared on the basis of common problem issues to all entities in the field of public procurement.
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To draw up and submit a draft law to amend the Budget Code of Ukraine and other related regulatory acts, including: establishing clear deadlines, until which payments for procurement contracts must be made, typically not more than 30 working days, instituting penalties for past due payments. Ministry of Finance |
Implemented
— comments:
Compromise implementation: There appeared a long-awaited feature of checking payment under the contract in ProZorro public procurement electronic system. As a consequence of efforts from the Ministry of Economic Development, ProZorro team, the Ministry of Finance, the E-Data system and .007 project, now everyone is able not only to familiarize oneself with the text of a contract signed with a tender winner, but also to find out if payment was made thereunder.
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Draft amendments to the Law of Ukraine “On Public Procurements””:
- by adding to the basic terms in the law, in Art. 1, the concept of a consortium to ensure broader opportunities for companies to jointly submit a bid without having to establish a separate legal entity
- by reducing the mandatory minimum weight of the criterion “low price” from 70% to 50% for the procurement of works. When “low price” dominates the criteria while the terms of a contract are poorly defined and requirements for the subject of the purchase, this could lead to the bidder with the lowest price failing to complete the works or to complete them inadequately. Ministry for Development of Economy, Trade and Agriculture of Ukraine |
Implemented
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To take into account the necessity to amend Law of Ukraine "On public procurements" regarding publication of information on concessional tenders at the unified procurements portal in preparing the Draft Law of Ukraine "On concessions". Ministry for Development of Economy, Trade and Agriculture of Ukraine |
Implemented
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To add to its work plans of further adaptation of public procurement legislation to the EU legislation the Directives 2014/24 on public procurements and 2014/25 on procurements by enterprises that operate in the area of water supply, power, transport and postal services. Of particular importance are the provisions of EU legislation related to public procurements of construction works, including such criteria as life-cycle cost, the influence of a company's reputation on its potential participation in procurements, the concept of abnormally low price, etc. Ministry for Development of Economy, Trade and Agriculture of Ukraine |
Implemented
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