RA Urban Development Committee proposes rating construction companies

ArmInfo. The Urban Development Committee of Armenia proposes to create a rating system for construction companies of the Republic of Armenia, which will ensure transparency, competitive development and attraction of international  investments. The draft law is posted on the unified portal of legal acts e-draft.am.

As stated in the explanation to the document, the adoption of the draft is due to the need to ensure the continuity of consistent steps aimed at improving the conditions for doing business in the field of urban development activities, further regulation and simplification of licensing procedures, as well as the proper organization of the rating process of licensed entities of urban development activities. The procedure for rating and monitoring entities of licensed urban development activities is of key importance for the implementation of the Law and all subsequent processes.

It is noted that at present, the conditions and requirements for the rating and monitoring of licensed entities of urban development activities have not been defined in the Republic of Armenia, and the rating and monitoring process is not being implemented.

The rating and monitoring procedure established by the draft applies to licensed entities engaged in urban development activities: large (annual turnover of 10+ billion drams), medium (2-10 billion drams) and small (less than 2 billion drams).

The draft proposes to establish conditions and requirements for  rating and monitoring entities engaged in licensed urban development activities, aimed at creating the possibility of analyzing the assessment of the quality of urban development activities and taking into account the results within the framework of licensed business entities.

The rating of licensees will be a set of measures for collecting  data, assessing quality, analyzing and recording results aimed at monitoring and improving urban development activities, the main objectives of which are:

ensuring stable quality of work or services provided by licensees,assisting the client in choosing licensed persons,promoting the competitiveness of licensees.

The rating will be based on the analysis of the collected information characterizing the organization's activities, which consists of various components (administrative penalties, high-quality work, use of BIM technologies, fulfillment of tax obligations, development of professional skills, etc.).

On June 17, 2022, at a meeting of the Cabinet of Ministers, Deputy Prime Minister Tigran Khachatryan announced plans to create a rating system for construction companies to solve problems with the quality of work performed. In turn, Armenian Prime Minister Nikol Pashinyan proposed creating a system by which it would be possible to evaluate companies and even include unscrupulous performers in the "black list".