Unscrupulous contractors will be prohibited from entering into contracts for major repairs

The government has decided to limit the participation of unscrupulous contractors in bidding for major repairs in residential buildings; such measures have been taken in order to attract only qualified companies to work, reported press service of the Cabinet of Ministers.

Now, as the government clarified, the contracting company may be excluded from the register of qualified contractors and suspended for a year from participating in electronic auctions where contracts for major repairs are distributed. Such sanctions may follow for a number of violations, including the provision of false information about the organization.

Previously, contractors could be excluded from the register only for gross violations – in particular, for repeated refusal to fulfill a contract under a won tender, the press service of the Cabinet of Ministers explained. In addition, a company will not be allowed to bid if a self-regulatory organization, following citizen complaints, has suspended its rights to perform certain types of work.

The resolution is necessary to fulfill the instructions of Russian President Vladimir Putin, which were given following the meeting of the Presidium of the State Council in June 2022.

The housing renovation program in Russia, financed by contributions from residents, was launched in 2012. It is designed for 30 years. During this time, the authorities expect to completely eliminate the stock of dilapidated houses in the country. In 2018, Putin signed a law that allowed regional authorities to subsidize contributions for major repairs for pensioners and the disabled. In March 2020, Moscow residents were exempted from relevant fees for three months (from April 1 to June 30) due to the pandemic and its consequences.