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This is an Open Access article, distributed under the terms 
of the Creative Commons Attribution CC BY 4.0

1 Donetsk State University of Internal Affairs, Kropyvnytskyi, Ukraine (corresponding author)
E-mail: ppvr@ukr.net
ORCID: https://orcid.org/0000-0002-0655-5256
2 Donetsk State University of Internal Affairs, Kropyvnytskyi, Ukraine
E-mail: valentin-tulinov@ukr.net
ORCID: https://orcid.org/0000-0002-3972-348X
3 Educational and Research Activities 
of the Luhansk Educational and Scientific Institute named after E.O. Didorenko 
of the Donetsk State University of Internal Affairs, Kropyvnytskyi, Ukraine
E-mail: valerakosse77@gmail.com
ORCID: https://orcid.org/0000-0002-6576-0620

DOI: https://doi.org/10.30525/2256-0742/2025-11-2-95-103

LEGAL STATUS AND COST-EFFECTIVENESS  
OF SUPERVISORY BODIES IN PREVENTING OFFENSES  

IN THE CONSTRUCTION SECTOR
Volodymyr Buha1, Valentyn Tulinov2, Valerii Kosse3 

Abstract. The purpose of the present article is to analyse the legal status and cost-effectiveness of supervisory  
bodies in preventing violations in the construction sector. Methodology. The present study employed a range 
of general scientific methods of formal logic (analysis, synthesis, deduction, induction, analogy, abstraction 
and modelling) as well as a number of special methods (a logico-legal method and an axiomatic method).  
The employment of these methods enabled the disclosure of the legal status of supervisory bodies in the  
prevention of offences in the field of construction. Results. The development of the country's economy is closely 
connected with the following main sectors: industry, agriculture, transport and communications, construction, 
education, and other spheres. It is imperative to acknowledge the inherent interconnectedness that characterises 
all components of the economy. The dynamic interplay amongst these elements serves as the crux that determines 
the strategic direction of both individual sectors and the economy in its entirety. The coordination of activities 
across different sectors, and the degree to which these sectors influence one another, directly impact the 
overall efficiency of economic growth. The construction industry, specifically, assumes a pivotal function, with a 
concentration on new construction, reconstruction, and the augmentation of production capacity in associated 
sectors. Conversely, such industry is contingent on the products and services of other sectors of the economy. 
In the contemporary context of Ukraine's economic development, a particular emphasis is placed on strategic 
planning. This facilitates the formulation of effective plans and the adaptation of tasks in response to changes and 
features in the processes of development and co-operation across various economic sectors. In the aftermath of the 
imposition of martial law in Ukraine, a moratorium on inspections has been declared. Accordingly, the Resolution 
of the Cabinet of Ministers of Ukraine No. 303 dated March 13, 2022, entitled "On Termination of Measures of State 
Supervision (Control) under Martial Law", has effectively suspended all scheduled and unscheduled measures 
of state supervision (control) and state market supervision for the duration of martial law, as initially established 
by the Decree of the President of Ukraine "On Introduction of Martial Law in Ukraine" No. 64 dated February 24, 
2022. The moratorium is applicable to a range of measures, including those pertaining to state architectural and 
construction control. This enables unscrupulous developers to undertake construction works that do not comply 
with the legislative and state building regulations, or to carry out such works without the requisite documentation. 
Nevertheless, as outlined in paragraph 2 of the Resolution, the implementation of unscheduled measures of state 
supervision (control) on the basis of decisions made by central executive bodies, which are intended to ensure the 
formation of state policy in the relevant areas, is permitted under conditions of martial law, provided that there is a 
threat that has a negative impact on the rights, legitimate interests, life and health of an individual, the protection 
of the natural environment and the security of the state, as well as the observation of international obligations 
of Ukraine. In the above circumstances, the state architectural and construction control body may apply to the 
central body responsible for formulating state policy in the field of construction and urban development (currently 



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the Ministry of Community, Territories and Infrastructure Development of Ukraine) for permission to carry out an 
inspection. Practical implications. In accordance with the legal status of supervisory bodies in preventing offences in 
the field of construction, such activity is defined as an administrative and preventive procedure. Furthermore, it can 
be both disputed (i.e., conflict) and undisputed (i.e., non-conflict). Additionally, it can be regarded as administrative 
and organisational, as well as interventional (initiated by a public entity). At present, a trend is being observed in 
the country that is both understandable and justifiable. This trend involves the delegation of powers in relation  
to state architectural and construction control to local self-government bodies. The cost-effectiveness of 
supervisory bodies in preventing violations in construction is a crucial factor for the stability and development of 
the construction market. The implementation of rigorous supervision protocols has been demonstrated to result 
in a substantial reduction in violations, thereby mitigating substantial economic expenditures. This, in turn, fosters 
the creation of a secure environment conducive to the advancement of construction, which is recognised as the 
cornerstone for achieving sustainable economic growth within the nation. The legal status and effectiveness of 
supervisory bodies in preventing violations in the construction sector are important aspects for ensuring safety, 
quality and compliance with standards in this sphere. The significance of effective oversight by state entities in the 
construction sector is profound, given its direct impact on the social and economic well-being of the nation, the 
quality of life of its citizens, and environmental safety.

Keywords: supervision, supervisory bodies, cost-effectiveness of supervisory bodies, construction industry, 
construction, scheduled and unscheduled inspections.

JEL Classification: L70, L74

1. Introduction
The development of the country's economy is 

contingent upon the progression of its industrial 
sectors, encompassing industry, agriculture, transport 
and communications, construction, education, and so 
forth. It is evident that all sectors of the economy are 
interconnected. Each sector interacts with another, and 
the influence of one sector on the other determines 
the development strategy of the sector itself and the 
economy as a whole. The development of the entire 
economy is contingent upon the degree of influence 
exerted by each sector on the others. The construction 
sector is responsible for the physical development of 
new infrastructure, the refurbishment and expansion 
of production capacities in other sectors, and the 
reconstruction of existing structures. The construction 
sector also utilises the results of production activities 
undertaken in other sectors. In the contemporary 
context of the Ukrainian economy's developmental 
trajectory, strategic planning assumes paramount 
importance. This approach entails the formulation 
of a comprehensive plan and the realignment of 
tasks in response to the idiosyncrasies inherent 
in the interplay among diverse economic sectors  
(Tsilenko, 2013).

In the aftermath of the imposition of martial law 
in Ukraine, a moratorium on inspections has been 
declared. Accordingly, the Resolution of the Cabinet 
of Ministers of Ukraine No. 303 dated 13 March 
2022, entitled "On Termination of Measures of State 
Supervision (Control) under Martial Law", stipulates 
the termination of scheduled and unscheduled 
measures of state supervision (control) and state market 

supervision for the duration of martial law, as per the 
Decree of the President of Ukraine. It is to be noted 
that the No. 64 dated February 24, 2022 have been  
suspended (The Resolution of the Cabinet of Ministers 
of Ukraine "On Termination of Measures of State 
Supervision (Control) under Martial Law", 2022). 
The moratorium is applicable to the measures of the 
state architectural and construction control, which has 
been identified as a potential point of vulnerability.  
It has been observed that unscrupulous developers have 
been known to take advantage of this ban, carrying out 
construction works that do not meet the requirements  
of the law, state building regulations, or even carrying 
them out without any permission documents. 
Nevertheless, as outlined in paragraph 2 of the  
Resolution, the implementation of unscheduled 
measures of state supervision (control) on the basis 
of decisions made by central executive bodies, which 
are intended to ensure the formation of state policy 
in the relevant areas, is permitted under conditions 
of martial law, provided that there is a threat that has 
a negative impact on the rights, legitimate interests, 
life and health of an individual, the protection of the 
natural environment and the security of the state, as 
well as the observation of international obligations of 
Ukraine (The Resolution of the Cabinet of Ministers 
of Ukraine "On Termination of Measures of State 
Supervision (Control) under Martial Law", 2022). 
In such circumstances, the state architectural and 
construction control body may submit an application to 
the central body responsible for formulating state policy 
in the domain of construction and urban development, 
currently the Ministry of Community Territories and 



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Infrastructure Development of Ukraine, to obtain 
consent for the execution of an inspection.

2. Scheduled and Unscheduled Inspections  
by the State Inspection of Architecture  
and Urban Development of Ukraine

In accordance with the stipulated "Procedure for the 
implementation of state architectural and construction 
supervision", the scheduling of inspections can be 
divided into three categories: scheduled, unscheduled, 
and documentary. Scheduled inspections are carried 
out on the basis of the State Architecture and  
Urban Development Inspection of Ukraine (SAUDI) 
order and a referral for inspection, created using 
an electronic cabinet (The Resolution of the  
Cabinet of Ministers of Ukraine "On Approval of the 
Procedure for State Architectural and Construction 
Control", 2011).

Not later than seven calendar days before the day of 
the scheduled inspection, the SAUDI sends a written 
notification to the object of supervision by registered 
letter with a description of the object with a notice of 
delivery, indicating the conditions of the inspection  
and the period for which the inspection will be  
carried out (Resolution of the Cabinet of Ministers 
of Ukraine "On Approval of the Procedure for State 
Architectural and Construction Control", 2011).

Prior to the commencement of a scheduled  
inspection, the chief inspector of construction 
supervision of the SAUDI is obligated to present to 
the head of the object of supervision, or his deputy, or 
a person authorised by the head, an official certificate 
and a referral for the inspection. Should the object  
of supervision prohibit the main inspectors 
of construction supervision from the SAUDI 
from conducting an inspection, an act is drawn 
up accordingly. A scheduled inspection is to be 
conducted in the presence of the designated individual  
responsible for the supervision of the object in question, 
or their designated deputy, or an individual who 
has been granted the necessary authorisation by the 
aforementioned designated individual (The Resolution 
of the Cabinet of Ministers of Ukraine "On Approval  
of the Procedure for State Architectural and 
Construction Control", 2011).

An unscheduled inspection is an inspection that is 
not provided for in the SAUDI quarterly work plan.  
An unscheduled inspection is carried out by visiting  
the object of supervision. The grounds for an 
unscheduled inspection are as follows:
– Submission of a written application by the object of 
supervision to carry out an inspection regarding it; 
– verification of compliance by the object of 
supervision with the prescription of the chief  
inspector of construction supervision of the SAUDI;

– a substantiated appeal of a physical or legal entity 
about the violation of their rights, defined by the 
legislation, by the object of supervision while executing 
powers in the field of urban development activities;
– a written request from law enforcement bodies to 
conduct an inspection;
– detecting, based on the results of a chamber or 
documentary inspection, the information about 
the object of supervision violating the legislation 
requirements while executing powers in the field of 
urban development activities (The Resolution of the 
Cabinet of Ministers of Ukraine "On Approval of the 
Procedure for State Architectural and Construction 
Control", 2011).

An unscheduled inspection is conducted in 
accordance with the provisions stipulated in the  
SAUDI order and subsequent referral for inspection. 
In the course of an unscheduled inspection, the issues 
that are clarified are those for which the necessity  
of the inspection is established. 

An unscheduled inspection of the same object 
of supervision on issues that were the subject of an 
unscheduled inspection is not permitted, except in cases 
of detecting unreliable data provided during such an 
inspection (The Resolution of the Cabinet of Ministers 
of Ukraine "On Approval of the Procedure for State 
Architectural and Construction Control", 2011).

The maximum duration for which an unscheduled 
inspection may be conducted is 15 working days.  
In the event of a substantiated written request by 
the chief inspector of construction supervision, the 
specified term may be extended once by the order for 
a period not exceeding five working days.

During an unscheduled inspection, the chief 
inspector of construction supervision is obliged  
to show the head of the object of supervision, or 
his deputy, or a person authorised by the head, an 
official certificate and a referral for the inspection.  
In the event that the object of supervision prohibits 
the chief inspectors of construction supervision  
from conducting an inspection, an act regarding the 
matter is drawn up. An unscheduled inspection is to be 
conducted in the presence of the head of the object of 
supervision, or his deputy, or a person authorised by 
the head (The Resolution of the Cabinet of Ministers 
of Ukraine "On Approval of the Procedure for State 
Architectural and Construction Control", 2011).

3. Chamber and Documentary Inspections  
by the State Architecture  
and Urban Development Inspection of Ukraine

A chamber inspection is defined as an inspection 
conducted with the objective of identifying and 
eliminating any violations that may have occurred 
during the entry of information into the unified 
register of documents. These documents are 



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instrumental in the certification of the acceptance 
of completed construction objects into operation, 
the return of information for revision, the refusal to 
issue, the cancellation and annulment of the specified  
documents, and are based on information specified 
in this register, the urban cadastre, as well as those  
reflected in the reporting of the object of supervision.

A documentary inspection is defined as an  
inspection conducted for the purpose of establishing 
the timeliness, reliability, completeness, and  
compliance with the legislation in the field of urban 
development activities of the documents and  
materials of the objects of supervision compiled while 
executing their powers. A documentary inspection is 
a process that is carried out without the necessity of 
visiting the object of supervision.

In the event of the findings of the chamber and 
documentary inspection indicating potential 
contraventions of the legislation requirements in 
the domain of urban development, a notification 
is formulated. The head of the SAUDI is required  
to deliver a decision regarding the undertaking of 
an unscheduled inspection within five working days 
from the day of its formulation (The Resolution of the 
Cabinet of Ministers of Ukraine "On Approval of the 
Procedure for State Architectural and Construction 
Control", 2011).

4. Stages of the Architectural  
and Construction Supervision Procedure

The procedure of architectural and construction 
supervision includes the following stages: 

1) Preparatory stage, during which the SASU selects 
and specifies the object of supervision; procedural  
steps are taken to select the forms of supervision.

2) Main stage, within which the selected forms of 
supervision are applied, analyses compliance by the 
supervised object with the norms of legislation in 
the field of urban development, construction norms 
and legal norms by: checking the legality of decisions 
made by the supervised objects; requesting from  
public authorities, individuals and legal entities 
documents and materials related to the subject of 
supervision, obtaining information from automated 
information and reference systems, registers and 
databases created by public authorities; inspecting 
construction sites, premises of supervised objects 
and construction objects, documents and materials 
necessary for supervision; if necessary, engaging 
specialists of enterprises, institutions, organisations, 
inspection and financial authorities to carry out 
supervision.

3) Final stage, in which the SAUDI makes a decision 
in the form of an administrative act, the content of which 
can be determined by the following prescriptions:

a) The elimination of violations of legislation 
requirements in the field of urban development; the 
initiation of disciplinary proceedings against officials 
of the objects of supervision; the submission of the 
dismissal of an official of the object of supervision  
to the body that appointed them or the disqualification 
of said official from performing certain types of work 
to the body to which such a right was granted; the 
cancellation or suspension of the effect of the adopted 
decisions that violate the requirements of legislation 
in the field of urban development, with subsequent 
publication of such information on the official website 
of the SAUDI.

b)  The necessity of further exercise of control and 
supervisory powers over the object of supervision  
(The Resolution of the Cabinet of Ministers of Ukraine 
"On Approval of the Procedure for State Architectural 
and Construction Control", 2011; Gulchak, 2023). 

5. Engineering Control in Construction  
and the Profession  
of an Independent Consulting Engineer

It is important to note that engineering control 
in construction and the profession of independent 
consulting engineer have been recently introduced 
in Ukraine. It is the opinion of this institution 
that the creation of the basis and principles of 
independent control in construction should be gradual.  
This should be achieved through the introduction of 
the profession of a consulting engineer, as an institute 
of the best global practices in the construction industry. 
It is believed that this will increase the competitiveness 
of domestic specialists in the market of engineering 
services. This is especially true regarding the 
implementation of projects financed by international 
financial organisations. The field of activity of 
a consulting engineer includes the following:
– Acting as an expert who consults the client 
(customer) on project implementation;
– responding to and consulting the client (customer) 
regarding the selection of suppliers, contractors, 
subcontractors;
– objective managing construction on the site  
and fully following the project at all stages of 
construction;
– being responsible for compliance with legal norms 
regarding the powers delegated by the customer;
– monitoring of independent and comprehensive 
quality control during the design and construction 
of facilities (Marusheva, 2019) supervision, there are 
other types of inspections in the construction sector. 
According to the provisions of the Law of Ukraine  
"On Architectural Activity", the copyright and  
technical supervision during the construction of an 
architectural object is envisaged (Koval, 1999).



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6. State and Administrative Supervision
The Large Explanatory Dictionary of the Modern 

Ukrainian Language offers the following definition 
of state supervision: namely, it is the activity of 
special state administration bodies to systematically 
control compliance with the established state rules by 
enterprises, institutions, organisations, officials and 
individual citizens (Busel, 2005).

According to I.P. Golosnichenko (1999), 
administrative supervision can be defined as a  
systematic observation of the exact and consistent 
application of rules and norms by officials and citizens 
that protect life, health, the rights and freedoms of 
citizens, and regulate public order and security. The aim 
of administrative supervision is to prevent violations 
of these rules, identify violators, and bring them 
to administrative responsibility, as well as to apply 
measures of public influence to them.

According to A. V. Denysova, the concept of 
supervision as a type of state activity can be defined as 
a set of continuous actions to monitor the observance 
of legality in relevant social relations. These actions 
are carried out by a competent body in this area using 
the powers granted to it by law (sub-legal normative 
act). The aim of these actions is to prevent, detect  
and stop violations, as well as to bring violators to  
justice (Denysova, 2013).

Concomitantly, D. P. Tsvigun's (2002) conviction 
established that administrative supervision constitutes 
a distinct form of state management activity,  
executed by designated executive bodies in relation 
to enterprises, institutions, organisations, officials 
and citizens that are not subject to organisational 
subordination. This supervision involves the 
implementation of specific intersectoral norms, rules 
and requirements, utilising a multifaceted array of 
administrative influence mechanisms to prevent, 
detect and terminate offences, restore established legal 
relations and prosecute those deemed culpable.

It is an irrefutable fact that the definition of 
supervision as a means of ensuring legality is 
contingent upon the further definition of the specifics 
of the supervision activity, which is dependent on the  
subject that supervises the object (Tylchyk, Dragan, 
Nazymko, 2018).

7. Technical Supervision
In accordance with the Resolution of the Cabinet 

of Ministers of Ukraine "On Architectural and 
Technical Supervision during the Construction of an 
Architectural Object", technical supervision allows 
to establish whether the subjects of activity comply 
with the following provisions (The Resolution of the 
Cabinet of Ministers of Ukraine "On Architectural  
and Technical Supervision during the Construction of 
an Architectural Object", 2007):

Project solutions; 
– national standards, construction regulations; 
– control of the quality and volume of construction 
works.

The construction process is subject to technical 
supervision. The responsibility for technical 
supervision is entrusted to individuals who are required 
to possess a certification issued by the architectural and 
construction certification commission (Gryshchenko, 
Denysova, Ovsiannikova, Buha, Kiselyova, 2021).

The following powers are accorded to persons 
performing technical supervision: 

1) Verification: 
– Whether there are documents related to quality 
characteristics (technical passport, certificate, 
documents reflecting the results of laboratory tests, 
etc.);
– whether the performed works, constructions, 
products, materials, equipment meet the requirements 
approved in the project decisions;
– whether the requirements of national standards, 
building regulations, and technical conditions are met;
– whether the scope and quality of the completed 
works meet the requirements of the design and estimate 
documentation;
– whether the contractor complies with the  
instructions and prescriptions issued by the persons 
who carry out technical supervision, as well as  
according to the results of the state architectural and 
construction control and state supervision.

2) Keeping records of works (scopes, works 
performed with defects, etc.). 

3) Inspection and assessment of the work results.
4) Notification of contractors if products, materials 

and equipment do not meet the requirements of the 
regulatory documents.

5) Drawing up acts regarding poor work performance.
6) Participation in inspections: as a member of the 

working committee, inspect specific structures and 
components, construction and installation works, 
installed equipment, machinery and mechanisms for 
compliance with technical specifications. 

7) Performing other functions related to technical 
supervision at the facility (The Resolution of the 
Cabinet of Ministers of Ukraine "On Architectural and 
Technical Supervision during the Construction of an 
Architectural Object", 2007).

The supervision of copyright is the responsibility 
of the architect, who is the project's author, or other 
developers of the approved project, or authorised 
persons, as stipulated by legislation and the contract 
with the customer (developer). This supervision is in 
effect for the duration of the construction period and 
is intended to ensure compliance with the construction 
and installation works of the project (The Law of Ukraine 
"On Architectural Activity", 1999). However, it should 
be noted that copyright and technical supervision 



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are not part of the concept of state architectural and 
construction control and supervision. These aspects 
are carried out by entities that are not empowered in 
the specified field. In the event of detecting deviations 
during construction, such entities are authorised to 
notify the customer (the builder) and the relevant 
state architectural and construction control body  
to take measures in accordance with the legislation 
(Gurzhiy, 2013).

It is important to acknowledge that the Order of 
the Cabinet of Ministers "On Measures Aimed at  
De-shadowing Relations in the Field of Employment" 
stipulates the implementation of comprehensive 
measures designed to enhance transparency within 
the labor market and to optimise the oversight  
of labor relations with employees. The construction 
industry is distinguished by a considerable presence 
of unregistered workers who directly engage in 
construction and related occupations. The responsibility 
for monitoring compliance with labour legislation in 
Ukraine is divided among several bodies. These include 
the State Labor Service, the State Fiscal Service, the 
Pension Fund of Ukraine, the National Police and 
other central bodies of executive power. In some cases, 
local self-government bodies may also be involved  
(The Order of the Cabinet of Ministers of Ukraine  
"On Measures Aimed at De-shadowing Relations in the 
Field of Employment", 2018; Yasynska, Syrmamiikh, 
Penez, 2021).

8. Powers of the State Labor Service
It is evident that the State Labor Service is vested 

with the most extensive array of powers, particularly  
in the following domains:

1) In order to engage specialists from central and 
local executive bodies, local self-government bodies, 
scientists, representatives of employers' organisations, 
trade unions and other institutions of civil society, 
as well as enterprises, institutions and organisations  
(in agreement with their heads), the State Labor  
Service is tasked with considering the issues within  
their respective areas of competence.

2) The receipt of complimentary information, 
documentation and materials is requisite for the 
execution of assigned tasks, with such provisions to be 
obtained from ministries, central and local executive 
bodies, and local self-government entities, with 
particular emphasis on statistical data from statistical 
bodies.

3) The utilisation of pertinent information databases 
maintained by state bodies, local self-government 
entities, and the state government communication 
system, in conjunction with ancillary technical 
methodologies, is imperative. 

The organisation is responsible for convening 
meetings, establishing commissions and working 

groups, and conducting scientific conferences and 
seminars on subjects within its area of competence.

Conducting unimpeded inspections of production, 
office, administrative premises and production  
facilities of individuals and legal entities using hired 
labour, operating high-risk machinery, mechanisms  
and equipment at any working time of the day,  
without prior notice, in accordance with the 
requirements of the law, and, if found, recording the 
facts of violations of the legislation, the supervision 
and control over compliance with which is within the 
authority of the State Labour Service.

5-1) The right to access the production, service and 
administrative premises of legal entities (including their 
structural and separate units that are not legal entities) 
and physical entities using hired labour without 
hindrance and without prior notification is hereby 
granted.

6) Carry out unimpeded inspections in the 
administrative premises of the working bodies of 
the executive directorates of the Social Insurance 
Fund of Ukraine and the Compulsory State Social 
Insurance Fund of Ukraine for Unemployment on the 
appointment, calculation and payment of benefits, 
compensation, provision of social services and other 
types of material support provided by the compulsory 
state social insurance in order to observe the  
rights and guarantees of insured persons; in the  
course of inspections, to get acquainted with relevant 
information, documents and materials and receive 
copies or excerpts from documents necessary for the 
exercise of the State Labour Service's powers.

7) Obtaining written or oral explanations from 
employers and officials, conclusions based on the 
results of examinations, laboratory studies of working 
conditions, inspections, materials and information 
on relevant issues, reports on the level and state of 
preventive work, the causes of violations of the law  
and measures taken to eliminate them.

7-1) Receiving written explanations from officials 
of central executive authorities on the reasons for 
violations of labour and employment legislation.

Providing the employer with binding 
recommendations for making changes to structures, 
technological or organisational processes necessary to 
bring such processes in line with the requirements of 
the legislation on occupational safety and health and 
to increase the level of employee protection within  
the appropriate timeframe.

8-1) The provision of mandatory requirements 
to officials of central executive bodies, with 
a view to the elimination of the causes and conditions  
of their improper exercise of powers, the supervision 
of which is assigned to the competence of the State  
Labor Service.

9) The involvement of law enforcement personnel 
in the implementation of state supervision measures 



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within the remit of the State Labor Service is  
imperative.

10) Listening to the reports of officials from  
central and local executive bodies, local self-government 
bodies, enterprises, institutions and organisations 
on issues that fall within the remit of the State Labor 
Service.

11) The operation of specialised vehicles, including 
those with the symbols of the State Labour Service. 

12) Appealing to the court in cases provided for  
by law.

13) Performing actions aimed at ensuring the  
exercise of the powers provided for by law.

14) Sending notifications to employers about the 
incompatibility of certain officials with their positions, 
sending materials to the relevant authorities to bring 
such persons to justice in accordance with the law 
(The Resolution of the Cabinet of Ministers of Ukraine 
"On Approval of the Regulation on the State Labour 
Service of Ukraine", 2015).

In the context of regulatory and legal support, 
supervisory activity is subject to specific legal  
definitions and regulations that govern its 
implementation in designated spheres and industries. 
In general, the legal consequences of its implementation 
are primarily governed by normative legal acts.  
The focus on "mainly" is deliberate, as supervisory 
activity, in the broad sense of the concept, may not 
necessarily entail legal consequences. The present 
discussion pertains to the notion of state control and 
supervision over situations that emerge in areas where 
direct state influence is either impracticable or can only 
be exercised in emergency circumstances (Buga, 2023).

9. Cost-Effectiveness of Supervisory Bodies  
in Preventing Violations  
in the Construction Sector

It is important to note that the cost-effectiveness 
of supervisory bodies in preventing violations in the 
construction sector is a significant aspect for ensuring 
the stable development of the construction industry 
and guaranteeing the safety, quality and legality of 
construction processes. The cost-effectiveness of 
supervisory bodies is defined as the ability of these 
bodies to achieve their goals with minimal resource 
expenditure. The analysis of this effectiveness covers 
several key aspects: firstly, the role of supervisory 
bodies in construction, namely, supervisory bodies in 
the construction sector control the implementation of 
construction norms and standards, check compliance 
with legislation, ensure the safety and environmental 
sustainability of construction projects. In the context 
of Ukraine, the following authorities have been 
identified as relevant: the State Architectural and 
Construction Inspectorate (SACI), local authorities, 

technical supervision, environmental inspections 
and other authorities. Consequently, supervisory 
bodies, particularly state authorities that regulate the 
construction sector, play a pivotal role in ensuring the 
stability and efficiency of the construction market. 
Secondly, it is the prevention of violations. The primary 
objective of supervisory bodies in the construction 
sphere is to prevent violations during the construction 
process, including the illegal use of land plots,  
violations of design and technical standards, non-
compliance with safety standards, and failure to meet 
environmental requirements. As previously mentioned, 
the prevention of violations is ensured through 
regular inspections, monitoring of compliance with 
requirements, and consultations for developers and 
enterprises. The efficacy of such measures is contingent 
upon the organisational structure, powers and resources 
of supervisory bodies. Thirdly, the economic benefits 
of effective supervision are evident. The economic 
efficiency of supervisory authorities in preventing 
violations is manifested through: 1) reducing the  
costs of remediation of violations (e.g., fines, 
compensation for poor quality or dangerous 
construction); 2) improving the quality of construction 
(proper compliance with construction standards 
reduces the likelihood of accidents and other dangerous 
situations that can lead to high financial costs and 
human losses); 3) improving the investment climate 
(a reliable supervisory system increases confidence 
in the industry, which contributes to investment and 
economic growth); 4) reducing corruption risk (when 
supervisory authorities perform their role effectively, 
the likelihood of violations through bribery or other 
corruption schemes is reduced). Fourth, key indicators 
of economic efficiency: 1) direct financial benefits 
(reduced financial costs of remediation, fines for 
violations and litigation costs); 2) indirect benefits 
(increased confidence in the construction industry, 
improved efficiency of the construction labour 
market and investment in infrastructure); 3) social 
impact (improved safety and working conditions in 
construction, which directly affects the health and  
well-being of workers).

10. Conclusions
Consequently, it can be concluded that, in  

accordance with the legal status of supervisory bodies 
in preventing offences in the field of construction, 
such activity is defined as an administrative-preventive 
procedure. Furthermore, it can be both disputed 
(i.e., conflict) and undisputed (i.e., non-conflict). 
Furthermore, it can be regarded as administrative and 
organisational, as well as interventional (i.e., initiated  
by a public entity). At present, a trend is being observed 
in the country that is both understandable and 



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justifiable. This trend involves the delegation of powers 
in relation to state architectural and construction control 
to local self-government bodies. The cost-effectiveness 
of supervisory bodies in preventing violations in 
construction is of crucial importance for the stability 
and development of the construction market.  
The implementation of rigorous supervision measures 
has been demonstrated to result in a substantial 
reduction in violations, thereby mitigating substantial 
economic losses. Furthermore, this approach fosters 
the establishment of a secure environment conducive 
to the advancement of construction projects, thus 
laying the foundation for sustainable economic growth 

within the nation. In addition, supervisory bodies have 
been identified as playing a pivotal role in ensuring 
the appropriate level of safety and compliance with 
regulations in the construction sector. However,  
in order to achieve maximum economic effect, it is 
necessary to improve legislation constantly, personnel 
policy and control methods in order to create 
a transparent and effective system. It is important 
to acknowledge that a reduction in violations, 
enhancement of construction quality, and adherence 
to legislation are all conducive to the advancement of 
the economy and the enhancement of conditions for 
investors and citizens.

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Received on: 20th of March, 2025
Accepted on: 23th of April, 2025
Published on: 20th of May, 2025