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.
4. Competition
For comparison, in the USSR there were around 10-15 thousand construction organizations, and a few years ago in Russia there were more than 100 thousand of them. Yes, not as powerful as the DCS and SMU used to be, provided with equipment, people, etc … And so , sometimes firms that have only one seal from their fixed assets. But 100 thousand ! It's an Achievement!
But how much higher the competition, and how much lower the level of training of specialists, because it holds back the profits received by the “builders”, and they are accordingly forced to save on everything and make do with less qualified personnel.
5. Self-regulation in construction
The principles of self-regulation, which apparently came from Masonic organizations on the principle of “pay a fee and if you come out with a face, we will accept you,” and the current state policy in this matter only leads to the degradation of all participants. SRO checks – fiction, paid fees – sleep, i.e. work calmly. At the same time, only the funds themselves are clearly in the black – in fact, parasites. At least contributions to SROs could be directed to training and education!
6. Low quality of management of the national economy in general and the construction industry in particular