On the Economic Activity of a Developer in Organizing Construction

Abstract

The article is dedicated to the study of the economic activities of a real estate developer in construction organization. The concept of «construction» is analyzed as the content of the category of capital construction and urban planning activities. It is determined that the essence of capital construction consists of production processes that involve the mobilization and utilization of financial, material, and labor resources, with their organizational focus on the creation or improvement of buildings (capital structures) in order to generate profit and/or satisfy social needs. Construction, as a category of urban planning legislation, represents the practical implementation of Article 3 of the Constitution of Ukraine, which requires such organization of production, property, and regulatory measures in urban planning that would best balance the social, environmental, and economic interests for each member of society and corresponds to the human-centeredness of the state’s economic policy. A legal characterization of a real estate developer is provided as a subject of entrepreneurial activity in the field of urban planning, to whom the functions of the construction client may be delegated to carry out organizational and economic responsibilities in the construction process. The stages of the construction process, the composition of entities with organizational and economic responsibilities, and the subjects of economic activity involved in legal relationships with whom a real estate developer can ensure the construction process for the client, and implementing their own economic competence, are characterized. The main organizational functions of a real estate developer in the construction process are defined as follows: coordinating the client’s legal relationships with entities possessing organizational and economic powers to facilitate the permitting and coordinating procedures in construction; proposing to the client entities engaged in design, construction, and investment in projects, providing authorship, technical supervision, and scientific support in construction; implementing construction financing if stipulated in the contract with the client; planning, managing, coordinating, and controlling the activities of the entities involved in the construction process; performing other functions in construction delegated by the client based on the agreement regarding the organization and/or financing of the construction.