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Construction for dummies in Russia: save money and mind - Alexander Kalashnikov

Construction for dummies in Russia: save money and mind

Страниц

65

Год

2022

Hello there, dear English-speaking readers! Welcome to this unique book that sheds light on the intricacies of the construction industry in Russia. Here, you will find a wealth of information regarding the distinctive features of Russian legislation and the current state of our economy. In addition to that, I have infused this book with my own personal experiences and insights.

This book illuminates the challenges that individuals aspiring to pursue a career in construction may encounter. It delves into the hidden problems that remain unseen by those observing from the outside and provides practical advice on how to minimize potential losses. Moreover, it explores the question of whether it is worthwhile to venture into this field at all.

Presently, I have devoted considerable attention to issues and difficulties related to design, budgeting, and planning activities. I discuss the importance of having a basic understanding of general legal knowledge that is indispensable in this industry. Furthermore, I address the critical matter of workforce recruitment and broach other overarching problems commonly faced by the construction sector.

I firmly believe that it is essential for novices in the field to be equipped with a comprehensive overview of the aforementioned topics before fully immersing themselves in the construction industry. Rest assured that this is only the beginning of a fascinating journey. Stay tuned for more insightful discussions and practical guidance.

Safe travels!

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Foreword

Greetings English-speaking readers! This book is mainly about how things are in the construction industry in Russia. It contains our specific Russian features in the legislation and in the current situation in the economy. This book has become a comprehensive expression of the experience that I personally, or my colleagues, had to face in practical activities in construction. I got into construction quite by accident, I have no construction education, so I immediately had to figure out all issues on my own and look for ways to solve certain problems, without having any theoretical ideas.

Nevertheless, for 10 years in construction, I managed to be a foreman, designer, lawyer, economist and PTO engineer, supplier, project manager, certification specialist, commercial and executive director, customer and contractor, and I have seen enough of it all from the inside.

Moreover, I saw those aspects of construction and those nuances that not a word will be said in a construction university, both pluses and minuses, as well as the most common problems.

This book will not teach you how to build, assemble structures, pour concrete or lay bricks, but will give you a more advanced understanding of building and doing business in this area, i.e. about matters no less important than the direct construction process.

All in all, this book should be interesting.

People who want to be builders;

Students and graduates of construction universities;

Ordinary people or specialists of organizations who want or are forced to be customers of construction work in order to build or repair something;

People who want to manage construction organizations and earn money from this activity;

Designers and VET workers (in terms of parsing constant errors in estimates and projects).

1. Problems of the construction industry with staffing. Causes, consequences, ways out.

In construction, there are two constant problems with personnel:

maintaining the optimal number of staff;

management of the composition and qualifications of employees.

Causes

1. Low predictability of work volumes

Much more factors affect the receipt of volumes of construction work than in other industries. For example, there is an Olympics or a World Cup – there is a construction site, no – accordingly, there is nothing to talk about. Only developers of residential complexes or districts have it easier in this sense, because they can plan the work as a whole and for 3 and 5 years ahead – but this is not more than 1% of the number of all organizations.

2. Taxation, and primarily VAT and a high percentage of deductions from wages

Most construction projects fall under the need to work on the general taxation system. Contractors on the simplified tax system do not fit into the system because their customers need input VAT, and because the maintenance of large facilities means an annual revenue of 200 million rubles, i.e. the impossibility of applying the USN.

Example. You received 100 rubles for the work performed. with VAT, while you need to officially pay a salary of 70 rubles to workers. What is left after paying taxes?

Answer: Shortage of 20.1 rubles. either wages or taxes.

3. Seasonality

Seasonality is determined not only by climatic conditions. It also depends on the budget. Basically, objects are put into operation in the spring and must be delivered by December, i.e. by the end of the financial year, respectively, from January to April-May, there may be no work at all, and from May there is a terrible shortage of people, when both factors add up.

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