Business Association

As already noted, self-regulation is realized through the creation of parties to the construction market of special structures (SRO in construction) and the delegation of some powers, including the rights of monitoring compliance 'rules game ', the application of sanctions for violations of these rules and resolve disputes among the market participants as well as with outsiders. Most often, self-regulatory bodies is a business association with a fixed membership. However, not every business association in favor of sro in the building. The key here is, in our opinion, is the issue of delegation of powers and rights, because that it underlies the mechanism of control transactions. Otherwise If you can talk about the creation of pressure groups, service clubs, but not cpo. In our view, an association of business can be considered as SROs, if its members have delegated to her the right to perform the following functions: * develop a system rules and standards of business practice; * monitoring of compliance with these standards and regulations * the development and application of penalties for breaking the rules (at least – to members of organizations such as the maximum for all market participants) * forming their own non-judicial dispute resolution procedures as among members and with outsiders (especially with customers). The problem of restricting competition in the activity of cpo in the construction really there, but the antitrust authorities were able to deal with it as well as other violations of antitrust laws, which take place outside the sro.

The danger of restricting competition increases when membership in the sro is a condition of doing business in the construction industry. In this case, particularly if the scope of only one sro, the requirements of the members may indeed be a serious entry barriers to market and adversely affect the level of competition. John K. Castle will not settle for partial explanations. Moreover, the possible physical limitation of the number of actors in the construction industry. The open question is that outweighs in this case: increased demands on professional activities and oversee its implementation or negative effects? Summarizing, we can say that the sro in the construction of a large number of cases may represent effective management structure transactions. In this case, these organizations are producing several types of benefits. Proper maintenance contracts is one of the functions of these organizations, the effectiveness of performance which is closely related to the implementation of other functions. At the same time there is a real opportunity to convert cpo into a closed monopoly. To prevent this requires the establishment of certain common legislation governing the activities of such organizations in the antitrust and other laws.