Constraction Scam

How the private investor does check the right to a building of the lot. Part І

The state regulates construction activities through the State architectural and construction inspection in Ukraine.It is all known rule. However,is it working? For understanding, we offer the work instruction about the absence or inaccuracies in which of  allowing documents of the builder give the evidence that an object has every chance to pass from “an attractive construction” into “an eternal construction”.

As should be the case

The state architectural and construction inspection of Ukraine (hereinafter it names the SACIO), controls  all construction objects by registration/refusal in  declarations registration about the works beginning (preparatory, construction), carrying out scheduled/unscheduled inspections and also entering of construction objects in operation. The  state has provided to SACIO all mechanisms, allowing to perform the powers which were entrusted to it.

Inventors have the main problems of new buildings arising when SACIO:

  • cancels the declaration on the beginning of construction works;
  • refuses to accept a construction object in operation.

How it occurs

We inform   in detail about each of possible problems and  what signs demonstrate the  risk of the builder, finally not to transfer housing to investors.

SACIO cancels the declaration (permission) on the beginning of construction works.

Conditionally, all permissions to accomplishment of construction works can be divided into 2 categories:

  • construction objects of IV and V categories of complexity (as a rule, it is more than 6 floors at houses),
  • objects to ІІІ categories of complexity inclusive.

If to tell about houses altitude up to 6 floors inclusive, SACIO cancelled declarations on the beginning of their construction as a result of   employees  check  only if the declaration contains unveracious information / there are violations of town-planning rules.

An Investor actions

Objects construction  of a small number of storeys problem that  SACIO has no powers to demand from the builder the  additional documents for  information specified confirmation in the declaration. Thus,future investors shall check information compliance in the declaration if they don’t want to be deceived, as follows:

  1. to require  the declaration from the builder on the beginning of construction works;
  2. to request from the builder information on the land parcel under building and nature of the construction (the number of floors, etc.);
  3. to check information in the declaration for compliance of the actual information on a construction object.

The listed actions will have allowed  investors to distinguish doubtful buildings at an early stage of a construction until  the actual money  depositation into a new system.

To consult you concerning investment into a new system and the qualified specialist can answer additional questions. Address is the Legal services online


 In order that SACIO  registers to the declaration, some builders specify in it unreliable information ( They write that they build two-floor houses. They actually  build a five-floor object).

The IV and V complexity construction categories, the builder is obliged to provide together with the declaration (permission) to the accomplishment of construction works to employees SACIO supporting documents in this case . SACIO employees  are obliged to check them for reliability.

However, it would even seem obligation of government officials to check the reliability of the documents which are filed by the builder. It  doesn’t make expected investments more protected.

 They manage to build the 14-floor houses based on counterfeit declarations or in general without it. The builders do it thanks to improper execution assigned to SACIO functions on control of town-planning activities of builders in the cities .

SACIO officials “claim” on the fact that they have no bases for the check of construction objects regarding the observance of town-planning activities in connection with “the moratorium on business checks”. It is actually only an attempt to justify the divergence or frank unwillingness to check certain construction objects.

Risk responsibility

To bypass the moratorium on   SACIO, the   employee checks could  have filed in law enforcement agencies petitions for a crime (illegal building / forgery, etc.). However, despite a huge number of illegal and unauthorised constructions, the similar statements in law enforcement agencies arrive extremely seldom.

The criminal acts or state officials inactivity are the result of theUkrainian citizens   loss of their investments  for hundreds of millions of dollars. Actually, the state doesn’t perform the functions on the protection of investments of individuals, the  citizens of Ukraine on whose taxes actually it  exists.

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