075143

JPRS-UCR-84-001

9 January 1984

USSR Report

CONSTRUCTION AND RELATED INDUSTRIES

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JPRS-UCR-84-001

9 January 1984

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USSR REPORT

CONSTRUCTION AND RELATED INDUSTRIES

CONTENTS

CONSTRUCTION PLANNING AND ECONOMICS

Gosplan, HStroybank Officials Respond to Commentary on Construction

Problems

(STROITEL'NAYA GAZETA, 9 Oct 83) 1

Gosstroy Construction Planning Experiment Supported

(E. Kondratov; IZVESTIYA, 12 Oct 83) 8

Planning Process for Industrial Reconstruction Examined

(P. P. Oleynik, et al.j PROMYSHLENNOYE STROITEL'STVO,

No 10, Oct 83) 12

Time Lag, Inefficiency in Project Planning Examined

(V. Goncharenko, D. Porkhunov; STROITEL'NAYA GAZETA,

13 Nov 83) 16

Coordinated Supply of Materials Needed for Construction Projects

(Yu. P. Sadakov; EK0N0MIKA STROITEL'STVA, No 10, Oct 83) .. 19

AGRICULTURAL CONSTRUCTION

Capital Investment in Agricultural Construction Analyzed

(V. Matyushin; EKONOMIKA SEL'SKOGO KHOZYAYSTVA, No 9,

Sep 83) 25

Growth of Rural Housing Facilities Noted

(Various sources, various dates) 36

Tatar ASSR, by M. Nagavev

Chuvash ASSR, by V. Ivanova

-a - [III - USSR - 36a]
HOUSING CONSTRUCTION

Flow Method Advocated To Accelerate Housing Construction

(V. F. Illarionov; BYULLETEN* STROITEL'NOY TEKHNIKI,

No 10, Oct 83) .....................................,,,.. 41

CONSTRUCTION MACHINERY AND EQUIPMENT

Mechanization To Increase in Construction Industry

(V. V. Semkovskiy, Yu. S. Vostrikov; MEKHANIZATSIYA

STROITEL'STVA, No 11, Nov 83) ........................... 48

BUILDING MATERIALS

Moscow Building Materials Chief Discusses Industry

(A. Osipov; MOSKOVSKAYA PRAVDA, 5 Oct 83) ............... 55

Recycled Industrial By-Products Used in Construction

(V. Penkin; STROITEL'NAYA GAZETA, 16 Nov 83) ............ 58

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CONSTRUCTION PLANNING AND ECONOMICS

GOSPLAN, STROYBANK OFFICIALS RESPOND TO COMMENTARY ON CONSTRUCTION PROBLEMS

Moscow STROITEL'NAYA GAZETA in Russian 9 Oct 83 p 2

/Article from Department of Economics_and Labor Organization of STROITEL'NAYA

GAZETA: "First of All — Discipline^/

/Text/ On 16 January of this year, in an article by the

chief of the Planning Department for a combine of

Voroshilovgradtyazhstroy A. Zibrov, entitled "If Only It

Is Included in the Title," STROITEL'NAYA GAZETA commenced

a discussion on increasing the responsibility of all those

participating in construction work with regard to

accelerating the placing in operation of production

capabilities and installations and the fulfillment of

contractual obligations.

During the period devoted to this discussion, 16 articles

were published by specialists and the Editorial Board

received dozens of letters from readers. In response to a

request by the newspaper, executives of USSR Gosplan and

USSR Stroybank herein provide their comments to the opinions

and recommendations expressed.

Bitter Truth of a Contractor — by V. Balakin, deputy chief of the Department

of Construction and the Construction Industry of USSR Gosplan.

The subject of the discussion is a very vital one. Statistics indicate that

20-30 percent of all installations not placed in operation were not

introduced because of problems with the clients.. This includes delays in

providing technical documentation for the construction projects, incidents of

poor quality use of such documentation, changes in plans during the course of

construction, incorrect determination of the cost of complexes under

construction, untimely and incomplete deliveries of technological equipment,

late preparation.of-contracts and financing for construction projects and

disruption of schedules for the halting of existing production efforts for

modernization purposes.

The discussion materials contained a large number of specific examples of the

consequences of non-fulfillment by the clients of their many functions. It is
obvious that in turn these factors are also greatly dependent upon the planners,

producers and suppliers of the equipment. However, legally the construction is

carried out on the basis of a contract between two sides: a client and a

contractor, who must themselves regulate relationships with other participants

in the construction. Thus the discussion mainly took the form of claims being

addressed against the clients by the contractors and recommendations for

increasing, the responsibility of the clients for the final results of the

construction process.

Opinion of Readers. "Many present day shortcomings in construction are caused

for the most part by violations of existing directive and normative documents

and by the absence of proper state discipline among those participating in the

construction production line and especially among the clients" (majority of

those participating in the discussion).

This is truly so. For example, the decree of the CPSU Central Committee and

the USSR Council'of Ministers on improving the economic mechanism clearly

states that a plan for capital construction must include construction projects

for which technical documentation was made available on 1 July of the year

preceding the planned year. Why then should problems arise regarding the

untimely availability of planning-estimates documentation for construction

projects?

The rules for capital construction contracts stipulate that the contracts must

be concluded within a 2 month period following approval of the plan and yet

the campaign for concluding them drags out for almost 6 months. This same

document calls for definite sanctions to be handed down for violations by the

sides involved of the contractual obligations. However, more often than not

these sanctions are not applied to the guilty parties.

The mentioned decree of the CPSU Central Committee and the USSR Council of

Ministers has established the order for approving the plan for commodity

construction output for the enterprises and client-organizations.

Recommendation of the Readers. "A correction should be introduced to the

established tradition of having the contractors bear all responsibility and

guilt for the unsatisfactory status of affairs in construction — the role and

responsibility of the clients in the construction process should be raised

considerably." (majority of those participating in the discussion).

Such a formulation for this problem is proper and not accidental. In view of

the fact that construction is not a goal in itself but rather a means for

developing the economy and solving social problems, the clients are thus

confronted with the task of making efficient use of capital investments in

the interest of ensuring the planned development of the branches and the

elimination of disproportions within them.

First of all, the elimination of a dispersion of resources among numerous

construction projects and concentrating them on the completion of projects

already under construction, in the interest of reducing the volumes of

unfinished construction, is dependent upon the clients. Such a concentration

must be ensured in the draft plans.
A client, as the party who is most interested in the rapid placing in operation

of production capabilities and installations, is Obligated to observe in a

very strict manner, during the construction process, the contractual

obligations and functions imposed upon him. He must bear full responsibility

for the fulfillment, within the established periods, of the tasks for placing

capabilities and fixed capital in operation, the plans for commodity

construction output and also for the rapid mastering of capabilities newly

placed in operation. Towards this end, he must select correctly and prepare

the sites for construction and ensure that the construction projects are

provided with high quality plans in a timely manner, while devoting special

attention to accurately defining the start-up complexes and their cost and

equipment deliveries according to schedules, depending upon the departmental

subordination of the completion organization, the timely carrying out of

start-up and adjustment work and the training of operating personnel.

The solving of these problems does not require any change in the established

system for issuing new normative documents.

In addition, a number of questions were raised in the discussion materials,

the solutions for which require a change in the existing system.

Recommendation of Readers. "Change the sequence for developing the plan.

Initially conclude the contracts and subsequently include projects in the

plan. The inclusion of projects in the plan must serve as approval of the

contract and as authorization to implement it." (V. Novikov, "First the

Contract," STROITEL'NASA GAZETA, No. 24, 25 February).

To agree with such a recommendation is tantamount to rejecting centralized

planned management and to violating the principle of proportional development

of the national economy. Certainly, the plan must be the primary consideration

and the contract — the secondary one. The latter must regulate the

interrelationships Of the sides and not the purpose of the construction.

The elimination of the existing shortcomings in the contractual campaigns must

be carried out using another method: the annual drawing up of contracts,

with one general contract being concluded for the entire construction period,

must be rejected. Such a recommendation is examined in the central organs and

at the same time the plans call for changes to be introduced into the system

for and the amounts of sanctions for the non-fulfillment of contractual

obligations. In discussing sanctions, it should be noted that the general

contractors are making poor use of Point 68 of the Rules for Contracts, with

regard to reimbursement for all losses (including percentages for the untimely

turning over of projects).

Recommendation of Readers. "To redistribute a portion of the profits of

sub-contracting organizations and transport in favor of a general contractor"

(A. Adamiya, "Degree of Participation,". STROITEL'NA.YA GAZETA, NO. 17,

9 February).

It is difficult to support this recommendation, since it is in conflict with

the basic principles of cost accounting. The difference in profitability

levels is taken into account in the plans for the production costs for work and
profit. It must be assumed that the introduction of new estimated norms and

prices on 1 January 1984 will smooth out this difference to a considerable

degree.

In this same article, A. Adamiya writes that the evaluative indicator for

commodity construction output is in conflict with the need for fulfilling the

inventory plan. It is completely obvious that orientation of the planned

indicators on the final work results determines the priority of these

indicators, under conditions in which the plan is fulfilled, this does not

cause any harm to the inventory. In the case of non-fulfillment of the plan,

the resources must be employed mainly for projects which are under

construction.

Opinion of Readers. "The institutes of USSR Stroybank must ensure the

continuous issuing of credit for unfinished construction-installation work

under all conditions. The cessation of this type of credit for any reason is

equivalent to the cessation of construction" (majority of those who

participated in the discussion).

It is our firm conviction that in order to ensure the continuous issuing of

credit by the bank, use must be made of all resources called for in the credit

plan for these purposes, with no limitation being imposed with regard to

using only resources accumulated by the particular client. Beyond any doubt,

we can agree with the authors that this represents an incorrect classification

by the banks of projects included in the plan, projects for which the client

has still not opened up financing of a "non-plan" nature.

Recommendation of the readers. "To issue credit for unfinished constructioninstallation work not to the contractor but rather to the client"

(A. Volosatov, "Desired and Actual," STROITEL'NAYA GAZETA, No. 33, 18 March).

This recommendation is in conflict with the basic principle of crediting —

the issuing of credit for logistical support and also the concept of

computations for commodity construction output.

The operational results of the construction ministries during the first 6

months of this year underscore a trend towards improving the work of

construction organizations. An increase in the degree of"responsibility being

displayed by all those participating in construction will make it possible to

improve the status of affairs in this most important branch of the national

economy.

Through a Prism of Control -- by V. Kulikov, member of the Administration of

USSR Stroybank and chief of the Administration for the Financing and Crediting

of Contractual Organizations.

Recommendation of Readers. "To establish a schedule for concluding contractual

agreements for capital construction prior to 1 January of the planned year. To

increase the period for regulating differences in contractual agreements to 20

days" (A. Ivanov, "Do Not Argue, But Build," STROITEL'NAYA GAZETA,.No. 19,

13 February).

4
In accordance with the draft new rules for contractual agreements for

capital construction, the drawing up of contractual agreements must be carried

out within a 2 month period following approval of the title list, but no later

than 1 January of the planned year, based upon the fact that the title lists

must be approved prior to 1 November of the year preceding the planned year.

Experience reveals that the contractual campaign is annually held up for an

extended period of time. Even by 1 April, contractual agreements have hot been

drawn up at many construction sites. Under these conditions, it is hardly

advisable to double the existing period for regulating differences between

the client and contractor. This could lead to further delays in drawing up the

contracts.

Recommendation of Readers. "Raise the effectiveness of property influence on

the carrying out of contractual obligations." (majority of those participating

in the discussion).

The need for raising contractual discipline and strengthening the role played

by economic sanctions for violations of economic contracts in construction is

beyond dispute. The above-mentioned draft rules for contracts'call for a ^

considerable increase in property responsibility by the parties involved for

violations of contractual obligations.

Recommendation of Readers. "Introduce into the practice of USSR Stroybank

institutes a preliminary check on the title lists prior to their being turned

over to the contractor for the purpose of drawing up contracts." (S. Dichenkov,

"Weighty Utterance By the Bank," STROITEL'NAYA GAZETA, No. 30, 11 March).

Such work is presently being carried out in all areas by the institutes of

USSR Stroybank. In conformity with the USSR Stroybank Regulations, the bank's

institutes participate in the work of preparing the draft plans for capital

construction and the title lists for the construction projects and

installations. Towards this end, the bank's institutes receive the draft

plans for capital construction and the title lists for the construction projects

and installations from the enterprises and organizations, they examine them

prior to presentation for approval by higher authority and they introduce their

own recommendations for the draft plan.

When examining the draft title lists, the bank's institutes ensure the adoption

by the clients of those recommendations aimed primarily at ensuring the

availability of capital investments for construction projects and installations

under construction, in the amounts required for their completion within the

established periods. A great amount of attention is .being given to checking

upon the availability of properly approved and complete planning-estimates

documentation for the construction projects included in the draft plan.

Projects for which such documentation is not available are excluded from the

plan by the bank.

Recommendation of Readers.. "USSR Stroybank should reexamine certain

instructions, the observance of which leads to violations of the principle of

continuity in'the issuing of-credit to a contractor." (A. Dominas, "Percentage

of the Percentage of Difference," STROITEL'NAYA GAZETA, No. 76, 26 June;

P. Chekan, "Ban Against Maneuvering," STROITEL'NAYA GAZETA, No. 83, 13 July).
It is apparent from articles already published that here we have, in mind

instances of insufficient resources for the issuing of credit to contractual

organizations to cover expenditures for unfinished production, with incomplete

accumulation of the resources of clients, made available in connection with

the abolishment of intermediate payments for work carried out and also

concerning the exclusion from credited expenditures of unfinished production

on projects not accepted by the bank for financing.

The instructions handed down by USSR Stroybank call for the issuing of credit

for unfinished production expenditures for each contractual organization

regardless of the total amount of resources accumulated by the client for a

given construction project and for their regulation to be carried out within

the limits for resources collected for a city, oblast or republic on the whole

and, when necessary, using the reserve of USSR Stroybank.

In the interest of raising the responsibility of the clients for the timely and

complete enumeration of the internal resources for financing capital

construction, Instruction No. 7/54 of USSR Stroybank and USSR Gosbank dated

7 March 1980 established the fact that the bank's institutes submit

recommendations to the appropriate economic organs on reducing capital

investments for those clients which were not provided with a payment for

internal resources, for the total amount of the underpayment.

The authors of some articles have recommended that the contractual organizations

be issued credit regardless of the opening of financing for construction

projects or the results of economic-financial activities, that is, automatically,

The introduction of such a system would signify the use of credit for covering

the expenditures for projects, the construction of which involves violations of

state planning and planning-estimates discipline. These recommendations

testify to the consumer attitude of a number of construction organizations

with regard to obtaining resources from the state.

It is known that a loss in internal working capital and shortages in such

capital as a rule are the result of unprofitable work by many contractual

organizations. However, instead of furnishing them with true assistance in

improving their economic activity and financial status, the construction

ministries and their territorial organs of administration often manifest a

desire to cover the financial problems by means of bank credit.

Recommendation of Readers. "To expand the network of construction-installation

organizations of branch client-ministries for carrying out work concerned with

the modernization and technical reequipping of enterprises." (N. Sokolov,

"On One's Own Saucer," STROITEL'NAYA GAZETA, No. 53, 4 May).

As is known, the task has been assigned in capital construction of making

capital investments and logistical and labor resources available primarily for

the reequipping and modernization of existing enterprises, reducing the number

of newly begun construction projects and also the volume of unfinished

construction.

The recommendation by N. Sokolov warrants attention". The measures proposed by

him are contained in a plan for new documents aimed, at improving the structure

of construction administration.
Recommendation of Readers. "To disseminate on a more extensive scale the

experience accumulated in creating services for a single client."

(N. Patrushev, "To Unite Clients," STROITSL'NAYA GAZSTA, No. 80, 6 July).

The USSR Council of Ministers, in its 5 October 1981 decree entitled

"Measures for Raising the Effectiveness of Capital Investments Allocated for

Housing Construction" recommended that the councils of ministers of union and

autonomous republics, USSR ministries and departments and the executive

committees of councils of people's deputies complete the creation in 1982, in

the capitals of union and autonomous republics, the administrative centers of

krays and oblasts and also in cities having populations in excess of 100,000,

services for a single client for the construction of housing and culturaldomestic and municipal economy installations using the contractual method.

The Editorial Board notes with satisfaction that the majority of the opinions

and recommendations expressed by readers of STROITEL*NAYA GAZETA have received

the unanimous support of the representatives of USSR Gosplan and USSR

Stroybank. This applies first of all to the need for a sharp increase in the

responsibility of a client for the investment process and also all participants

in the construction production line for the carrying out of contractual

obligations and for intensifying the effect of legal norms in the relationships

of allied workers.

As borne out by the statements of specialists, a number of the specific

measures recommended conform to the innovations called for in the draft new

rules for contractual agreements for capital construction. The rules for

financing and the issuing of credit in construction, statutes on organizational

relationships — general contractors with sub-contracting organizations and

other newly prepared documents of economic legislation.

At the same time, not all of the recommendations were beyond dispute. In

particular, USSR Stroybank does not consider it advisable to abolish certain

limitations associated with the issuing of credit for unfinished construction

production. USSR Gosplan objects to the recommendations associated with the

formation of plans.and the drawing up of contracts. Nevertheless, the

exchange of opinions on the pages of the newspaper defines more clearly the

essence of certain problems concerned with improving the economic mechanism

and this will make it possible in the future to find optimum methods for

solving them.

On the whole, the discussion revealed that an improvement in the efficiency

of construction prdouction, based upon a strengthening of state, planning,

financial, planning-estimates and contractual discipline constitutes a

powerful reserve for bringing about strong improvements in the status of affairs

in capital construction.

7026

CS0: 1821/02
CONSTRUCTION PLANNING AND ECONOMICS

GOSSTROY CONSTRUCTION PLANNING EXPERIMENT SUPPORTED

Moscow IZVESTIYA in Russian 12 Oct 83 p

-

2

[Article by IZVESTIYA correspondent E._ Kondratov: ' "The Experiment

Has Been Successful. What Is Next?"]

[Text] "We are taking part in a Gosstroy experiment..."

state the staff members of the Bureau of Expert Review

and Improvement of Planning Decisions. This organization

has been working in the city on the Volga for 5 years now.

It was established here following the example in Leningrad,

where a similar bureau was created 3 years previously.

There are only six of them in all in the country at this

time. Time will tell if there will be more—the experiment is still continuing. Its objective is quite specific: to reinforce the influence of construction organizations on improvement of planning decisions.

The bureau was not created from a good life, as they say. According to USSR

Gosstroy data, one-third of the plans which emanate from the many "gipros"

[state planning institutes] need serious modification, and even complete reworking. Gross'errors and miscalculations, the unjustified high prices of

projects being built, the preference for obsolete, stereotyped solutions to

innovations in technical thinking—what sins aren't the planners being charged

with these days! And even if it is one's business to reproach,. this criticism,

let us say frankly, is ineffective. The objective conditions which prevent the

planning organizations from working better cannot be left out of one's reckoning. One of them'is the scarcity of highly skilled personnel. In recent years

construction has not been providing institutes with specialists who know their

business. And most of those sitting at the drafting boards are either recent

VUZ graduates or long-time institute residents who long ago lost touch with

practical problems. And when planners concern themselves very little with a

comparison of possible alternatives, competitive planning and discussions in

institutes on the subject of "how better" are'a great rarity. And if we add

to this the fact that customers of the plans monitor their quality thoroughly

badly, and that the. builders have no objection as a rule to carrying out construction a little more expensively, obtaining a few more resources and the

maximum stock of materials, is the high percentage of defective planning surprising?
And one is surprised all the same... They showed me, as an example, the plan

for construction of a new section of a tarpaper and roofing material plant.

The concept was simply marvelous on the blueprints: they build the plant

without stopping production. But it turned out in fact that this was physically impossible. Or another example: the plan—for renovation of a glass

plant in Syzran'—called for expenditures of about 3 million rubles, but it

turned out that 2 million also would be enough. The planners intended to

erect several structures—a main building, a block of auxiliary shops and

additional accommodations. It turned out that all this can be accommodated

under one roof, and at the same time the building would not be larger, but on

the contrary, it would be shortened by 18 meters.

However, I'll be accurate, too: all this was not "revealed" and did not "turn

.out" by itself, of course. The Bureau of Expert Review and Improvement of

Planning Decisions—the child of a Gosstroy experiment, created firstly to evaluate how good (but more precisely, how poor) a plan is, and secondly to

propose its own more modern, economical plan solutions adhering to a strict

standard—devoted itself to modifications.

"Our work here is hectic," confesses S. Utkiny the bureau's chief engineer.

"Only a month is given to our experts to comprehend the plan. A month and a

half for developing their proposals, supported by accurate calculations and

blueprints. Nearly always we confine ourselves to periods of time that are

extra-rigid. In return, a lot of time is spent on coordination and controversies with customers and planners. They don't want to modify plans or make

them less expensive there. The VNIPIneft' [Petroleum Refining and Petrochemical Industry Scientific Research and Design Institute] and the "Kuybyshevnefteorgsintez" association, for example, have been opposing the bureau for

3 years now."

It is true that now, after the bureau has been in existence for 5 years, they

do not tell its staff members as in former times: don't interfere with the

councils of production technology, they say—the construction workers have

their own preserve [shestok], you know. Because they already know: before recommending anything, the Kuybyshev experts' persistently bore into the essence

of the specifics of future production facilities. They are guided by the experience of the best specialists in the sector, the knowledge of veterans,

and the erudition of science. Without the aid of experts it is doubtful

whether they would be able to reduce the price of building a measuring transformers plant by 800,000 rubles. Deep penetration into the technology of

warehousing has made it possible for bureau staff members to fundamentally

change the plan of the giant base through which 37,000 tons of vegetables pass

every year and to save 750,000 rubles in its construction. It proved to be

possible to reduce more than one-third of the cost of the warehouse for chemicals and materials for the production of ethylene in Novokuybyshevsk—and only

because the bureau's experts have acquired a good understanding of the minute

details of petrochemicals.
There's a little bureau for you! Hasn't the USSR Gosstroy truly devised a

nice organization? The country is being saved many millions by 30 persons.

That is why we cannot rejoice at the experiment's successes... It is awkward,

somehow. Why? Because the very existence of such bureaus is a manifestation

that is paradoxical, to say the least.

First of all, it assumes the age-old certainty of errors in plans. It is also

absurd that the Kuybyshev bureau of experts is examining the expert opinions

of the past not only in sectorial ministries, but in the Gosstroy itself.

This is nothing more than an expert opinion on an expert opinion. And finally, what is most absurd: the Kuybyshev experts have thoroughly cut again the

plans that already have been approved in the highest authorities. How can we

not comprehend the indignation of the customers and the planners: everything

went wonderfully—coordinated, signed,' confirmed, approved—and you can make

a fresh start! But the periods of time? And the funds? And financing?

This is difficult work, of course, but it would be worth calculating all the

same how much time and money have been spent for nothing on rejected plans and

the passage through all the steps of authority. But without calculations, the

weightiness of the benefit of the Gosstroy experiment, which like litmus paper

has revealed with deplorable obviousness the inadequacy of existing expert

services, is appreciable.

Isn't it really so? Take any sectorial ministry, and everywhere small groups

of experts are simply physically incapable of analyzing comprehensively and

thoroughly the vast number of projects being built. And especially of supervising the execution of their own recommendations. And even purely departmental interests at times are burdensome [zastilayut ochi]. An even greater burden has been shouldered by the Glavgosekspertiza [Main Administration for State

Expert Review of Designs and Budget Estimates for Construction Work] of the

country and the republics. Not to mention the fact that in order to examine

and propose any specific engineering solutions, the initial stage of the plan

is evaluated if only roughly, and that is fine. On such a blurred background

the work of six local bureaus of expert review, permeated in each movement by

its own specificity, appears to be especially efficient. After all, their

hands are full of trump cards: the engineering soundness of solutions, the

knowledge of local conditions, and the opportunity to supervise implementation

of their proposals. Participants in the Gosstroy experiment can contact customers and planners every day, coordinate and shake down [utryasaf] some details, jointly-looking for the best alternatives. And they exert extraordinary influence: the very fact of the bureau's existence disciplines the planners, putting them on guard against repeated errors.

No one assumed that the bureau of experts would gather such strength. Less

was intended: purely construction adjustment of the plans, without penetrating

the secrets of production technology. But one is closely linked with the

other, and the bureau experts, forced to become immersed in the specifics of

projects being planned, began to discover vast reserves of savings here. This

is why the USSR Gosstroy, convinced that its child had come of age, has given

it such high authority.

10
So the Gosstroy experiment is useful and extremely important. The bureau of

experts has shown itself to be a sufficiently effective means for construction

workers to influence the improvement of plans. However, the experiment may

cease to be this one day. This year the monitoring periods expire. Obviously, the concept itself is both viable and long-range. But something else also

is indisputable: it urgently needs to be improved and developed, taking the

sufficiently rich experience into account.

Here is what I. Bolotnikov, chief of the Kuybyshev bureau, thinks about this:

"The time has come to legalize our activity. While there is no appropriate

decision, until a clearcut Decree on Bureaus of Expert Review has been worked

out, sectorial organizations will ignore painlessly our solutions for the revision of plans. Measures of responsibility must be clearly defined for the

planners and customers, and the bureau of expert review must be made a tool

in state supervision of planning,, keeping it as the working organ of construction workers, of course. The time has come, to create, regional centers of expert review in large economic rayons which would study plans for the most important construction projects at an earlier stage—immediately after their approval by specialists of the sector, with modification of plans to begin in

accordance with the observations of departmental expert opinions. Then it

would not be necessary, as it is now, to dig up all over again the plans approved in the capital."

For myself I add: the purely economic aspect of the experiment also needs improvement. Under the existing situation, the savings which the bureau experts

are determining, making construction less costly, is taken into account for

the contractor as work that has been carried out. On the whole, the worse

(the more expensive) a project is, the better it is for construction workers:

more can be saved in this. What this leads to in practice has been discussed

by the newspaper in the satirical article "Dutiki" (IZVESTIYA Nos 231/232,

1983). But since construction workers must be interested in improving plans,

would it not be better, taking the savings and plan fulfillment into account,

to centralize the money saved in the main construction administration? And

it would provide incentive to all who are involved in this savings.

8936

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11
CONSTRUCTION PLANNING AND ECONOMICS

PUNNING PROCESS FOR INDUSTRIAL RECONSTRUCTION EXAMINED

Moscow PROMYSHLENNOYE STROITEL'STVO in Russian No 10, Oct 83 pp 20-21

[Article by P. P. Oleynik and L. P. Ablyazov, candidates of technical science

and V. P. Volodin, engineer (TsNIIOMTP. ): "Characteristics of the Development

of Plans for the Organization of Construction Work Involving Reconstruction"].

[Text] The general procedures for compiling and coordinating plans for the

organization of construction (POS) and and work plans (PPR) are regulated by

the directive on the procedure for compiling and coordinating POS and PPR

ratified by USSR Gosstroy, USSR Gosplan and USSR Stroybank [Bank for Financing

Capital Investments].

In the reconstruction of operating industrial enterprises additional requirements involving the necessity of taking the features of this type of work into

consideration are made upon the development of POS and PP'R.

In developing POS the calendar plan for construction and the comprehensive

consolidated critical path indicate the composition of work during the preshutdown, shutdown and post-shutdown period based upon the minimization of reconstruction work time involving the complete or partial shutdown of the production

process.

Organizational-technological schemes and methods of work are selected with a

view to the influence on construction-installation work, their compatibility

with the basic activities of the operation being rebuilt, and with a view to

their implementation within the existing general plan at the enterprise (operational activity of the enterprise, nature of the production areas' layout,

planning and design decisions of buildings and installations). The development

of schemes includes measures ensuring the stability and carrying capacity of

existing structures during construction-installation work and the isolation or"

the construction-installation work area from active production. In selecting

12
construction-installation work methods a list is made of jobs, the amount and

methods of work in cramped conditions in which there are factors increasing the

costs. There is also a determination of procedures for protecting existing

equipment during the replacement of walls and roofs.

The general construction plan should indicate: existing, engineering utilities

and those to be dismantled and moved, hookup location of temporary utilities,

buildings and facilities not being rebuilt, and those to be dismantled, routes

for moving construction materials, structures and equipment within the Industrial

enterprise and the shops being rebuilt, location of service facilities for

enterprise workers and safe passageways for builders and enterprise operating

personnel.

There are more extensive explanatory notes in the plans for the organization of

construction work. These indicate measures supporting the joint activities of

enterprises and construction organizations, the industrial enterprise's services

to create working conditions for builders, intraplant and intrashop lift and

transport equipment at the enterprise transferred to builders during reconstruction, worker protection and fire prevention measures which take into consideration the technological characteristics of the industrial enterprise.

The quality with which POS sections are prepared depends upon the timeliness and

completeness of the information from the client. In the development of a POS

the client should provide the planning organization with the following additional materials: on the composition of seperate technological sections in the

enterprise, possible sequences in their rebuilding and the duration for stopping

each technological section to perform construction-installation work; on the

sequence of dismantling and moving engineering utilities, the sites for hooking

up temporary water, electricity and gas supply systems, on the amount of energy

resources allocated to the client; a list of production and sanitary-service

facilities allocated to construction organizations during the reconstruction

work; conditions for allowing builders to use enterprise transport and lift

equipment (rail, motor vehicle and bridge cranes); conditions for the use of

enterprise workers for construction-installation work; zones with high temperatures, gas , equipment with high explosion and fire danger, cramped work conditions; the character of the restrictions on special types of work (drilling

and blasting, pile driving and burning-welding work, surface laying of pipes,

etc); character of road and area surfaces in areas of planned earthmoving work;

the location of facilities damage to which during construction-installation

work could cause serious consequences and human injury (gas manifolds, petroleum, oil lubricant storage areas, petroleum and gas pipelines, electric

power lines, etc), areas of landscaping and other improvements and roads on

the enterprise being rebuilt for which measures should be worked out to .

protect during reconstruction and to rebuild afterwards.

The work plan for reconstruction is developed to the same extent at for new

construction, but with consideration given to the features of work at the

existing enterprise. It should be coordinated with the enterprise board of

directors.

In developing the PPR, the calendar plain for work and the comprehensive critical

path indicate the procedures for combining construction work and the manufacturing processes of the operation being rebuilt or the duration of the temporary

13
shutdowns at enterprise, building or production shop during construction and

installation work. In developing these sections of the work plan consideration

is given to features of the compartmentalization of the buildings and facilities

involved into sections and to the structure of construction-installation work.

Enterprise directors assign sections and manufacturing areas to construction

organizations in order to complete construction-installation work. The basic

requirements in the determination of the boundaries here are the guarantee of

the spatial stability of buildings and facilities and construction-installation

work conditions as well as the observation of industrial safety rules for construction and industrial operations. In those cases where work makes it necessary

to temporarily or completely shut down manufacturing process equipment at the

shop or operation being rebuilt, the schedule allocates work to the preshutdown

shutdown and post-shutdown periods.

The following additional data is needed for the development of calendar plans .

and critical paths for reconstruction: technical records and blueprints of

buildings undergoing work, reports from the survey inspection of buildings and

facilities; schedule for the enterprise to release the building or section,

coordinated by time period with the enterprise administration; information on

all restrictions involving the specific conditions of this production operation

influencing the methods of construction-installation work completion; information on the possible times and duration for using existing railroad sidings,

main transport routes, etc.

The construction general plan indicates the boundaries of sections diverted for

work; (shop, bay, section, area, etc.); the disposition of existing buildings and

facilities not subject to reconstruction;- buildings and facilities being

erected, rebuilt or dismantled; the disposition of existing utility mains, distinguishing the functioning ones and the sites for connecting new lines with

present ones, the mains being moved, dismantled or laid; means of transporting

construction materials, machinery and equipment; safe passageways for workers

in the construction-installation work zones in getting to temporary buildings

and permanent service facilities of enterprises workers, zones of increased

danger from construction-installation work.

In order to coordinate construction-installation work with enterprise production

processes, the flowcharts indicate working conditions of construction machinery

near existing buildings and facilities; the procedure for moving enterprise

workers in the construction zone; means and methods, of protecting manufacturing

equipment and utility mains from possible damage during construction work and

of protecting construction workers from the harmful effects of the enterprise .

(shop) production environment; special requirements for "guaranteeing labor

protection and preventing fires and explosions.

It is advisable that the flowcharts for complex construction processes involving

large volumes of work performed prior to the shutdown of manufacturing equipment include layouts for the organization of the construction site (work zone)

prior to and during the shutdown period, and in some cases afterward.

.Additional materials for flowcharts include: working plans for the project under

reconstruction; drawings (plans and profiles) for the installation of existing

and planned manufacturing, transportation, power engineering, and other equipment

14.
and the lines tied into it, structures, devices and process pipeline layouts;

organizational-technological decisions for the reconstruction and erection of

buildings and facilities and methods for performing complex construction and

installation work outlined in the plans for the organization of construction;

additional requirements and restrictions for working in the existing enterprise,

with consideration given to spatial constraints and other factors agreed upon

with the client; materials, from surveys of the technical condition of building

structures, equipment, utilities; working conditions ( one, two: or three shifts

or duration in hours and the "windows" granted).

Explanatory notes in the plan indicate measures for protecting the landscape:

trees, bushes, grass, paths, pedestrian footways, etc.

The work plans coordinate the following with the services at the enterprise

being rebuilt: work methods, deadlines for beginning and completing work in

existing shops and in zones with fully used utility mains near existing construction, procedures for dismantling equipment and recovering road surfaces after

completing work, procedures for storage of construction materials and structures

and other problems arising in the enterprise's reconstruction. For example,

in planning the removal of utility mains from the work zone, done in cooperation

with enterprise services (general planning office, chief architect, department

of the chief mechanic) the deadlines for completing work and the schedules for

disconnecting and reconnecting utility mains are coordinated.

The high quality development of organizational-technological documentation for

reconstruction work is an important aspect of improving construction organization. Improvements in the quality of POS and PPR and reductions in the time

need for their development are ensured by the extensive use of standard organizational and technical solutions, norms, rules and documentation, flowcharts

for the standards of planning documentation, methodological guidlines and

practical aids and handbooks which are standardized with regard to content

and composition.

While systematic and planned work in this area is being conducted for new

construction, it is clearly insufficient for reconstruction. The "Guidelines

for the Development and Introduction of POS and PPR Under Conditions of

Reconstruction and Technical Reequipment" have been prepared at TsNIIOMTP of

USSR Gosstroy and will be published in a massive edition in 1984. They will

give methodological elaboration to that part of the chapter on "The Organization

of. Construction" in the SNiP [Construction Norms and Rules] on the content and

composition of planning decisions and documentation for reconstruction.

COPYRIGHT: Stroyizdat, 1983

11574

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15
CONSTRUCTION PLANNING AND ECONOMICS

TIHE LAG, INEFFICIENCY IN PROJECT PLANNING EXAMINED

Moscow STROITEL'NAYA GAZETA in Russian 13 Nov 83 p 3

[Article by V. Goncharenko and D. Porkhunov, chief design engineers, ,

Promstroyniiproyekt:'"Who Orders the Music?"]

[Text] Designers are frequently reproached for not using scientific and technic- '

al achievements or progressive experience when creating new or rebuilding existing enterprises. In general, the criticism is justified. Why does this occur?

We begin with the planning of design work. Understandably, it takes time to

work out a good design, to study similar work and the latest achievements in a

given sector and to estimate the costs of different variants. Frequently,

however, it is just time which we do not have. We are similar to chess players

in a time bind. This is by no means our own fault. In accordance with the

established procedure, technical documentation should be delivered to the

contractor by 1 July prior to the beginning of construction. But prior to this

the design must undergo all sorts of coordination, for which 45 days are allocated. Consequently, we should have them ready by no later than 15 May. Requests

for design work, however, are filled out in February, sometimes even later.

Thus it turns out that a maximum of three months is alloted to work on designs.

Is it really possible to do thorough work in this time?

Even if during this very short period we were nevertheless able to create a

design using effective engineering solutions, materials and structures, this

would in no way mean that it would be implemented. Having received the documentation, the contractor begins to "correct" it, declaring: "We don't have that,

we can't do this...." Then follows the ultimatum: rework it, otherwise it will

not be accepted for implementation.

Every contractor only demands changes in design decisions wich increase costs.

Here is a typical example. The foundations of a shop for barium ferrite powder

at the Donetsk Chemical Reagent Plant was reworked by us for a sand sub-base.

The Donetskmetallurgstroy [Donetsk Metallurgical Construction] Trust said that

it had no sand and demanded to "set" the shop on concrete supports. Although

this alternative was 250,000 rubles more and required at least 10 tons of concrete and metal, the.client was compelled to agree. He had no place to go —

the shop had to be"built. We attempted to stick to our decision, but we

were unsuccessful.

16
Many such examples could be given. They have one origin —the contractor's

striving to increase the work's cost. This will make it possible for him to

easily fulfill the plan and obtain profits and the material benefits linked to

it. There is no defense against this arbitrary rule. While the initially worked

out plan is carefully analyzed at an institute technical council and undergoes

expert evaluation and various kinds of coordination, the changes made at the

dictate of the builders are not seriously examined by anybody and are accepted

without almost no discussion. It is they, however, which most often entail

increases in project estimated costs.

It would seem that enterprise clients and their ministries would be just as

interested as us in the precise execution of approved designs, this is their

right and obligation. As they say, the one who pays calls the tune. The client

should not be indifferent about what is played and how much it will cost. But

strange as it may seem, everything it turned upsidedown here: one pays the money,

while the other the contractors themselves — calls the tune. What a paradox! '

Project technical standards and estimated costs depend upon the time required to

complete them. To put it mildly, the situation here is far from favorable. Construction often stretches out for many years and designs become hopelessly obsolete.

There are changes in technology, equipment is removed from production, there

are changes in the type and assortment of the intended output, new norms and

rules appear, etc. In order to keep pace with the changing times it is necessary

to make one correction after another and to redo already completed construction

work. As a result, estimated costs grow like a snowball. Alterations, no matter

how many of them there are, do not always save the situation, and the completed

projects do not always meet modern requirements»

As an example, one can point to the ferroconcrete pressure pipe plant in the

city of Dobropole. Its working documents were issued in 1975. Initially, it

was intended to use domestic equipment at the project, later it was decided to

install imported equipment with completely different sizes and technological

parameters. This decision was made after the building shells had already been

erected. It was necessary to replan the shops, change the foundations, alter

the engineering utilities, electrical system and other items. All this, of

course, cost a great deal of kopecks and did not help improve the technical and

other characteristics of the enterprise.

The Khimmash Plant in Snezhnoye has been under construction for 10 years. Its

technical documentation has been repeatedly altered due to changes in equipment

and output assortment, construction norms and rules and the like. There will

be more of this, as the end of construction is not in sight. It will not be

surprising that when this enterprise goes into operation it will look so obsolete

that its reconstruction should begin immediately. To blame the designers for

this is like someone with a sore head blaming the healthy.

Now a few words about the situation in design work. For a long time the question

has been raised about converting to the so-called variant designing. Everybody

acknowledges its advantages, but the matter is standing stock-still. It all

turns upon the limited resources allocated to design and research work; we are

supposed to manage with 1.5 - 2 percent of construction-installation costs. This

is hardly enough for a single design, to say. nothing of variants.

17
Limitations on resources for designing take place under the flag of economizing.

However, practice 'has long shown that economies on design are unintelligent

niggardliness. The truth is clear — the niggardly pay twice. With regards

to designing it turns out to be a hundred times twice. Every ruble saved in this

manner turns into large additional outlays for enterprise construction and

operation. This involves hundreds of thousands and even millions of rubles.

On the other hand, a carefully worked out plan ensures reductions in construction

costs and improvements in operating characteristics. This is a genuinely economic approach. We are not discovering America here, all this is well known,

but unfortunately attempts to save tiny amounts go under the name of good sense.

We have touched only on some of what are, in our opinion, the most important

factors which now hinder the improvement of design quality. In general, design

work has more than enough of various kinds of large and small problems. They

await their solution. First of all, the contractors' dictates should be eliminated, and each construction participant put in their place. This requires the

establishment of a procedure where contractors' suggestions for design changes

would be examined only if they are aimed towards reducing work costs and improving operational characteristics of the project.

It is also quite obvious that it is necessary to compensate for the two months

which designers loose because of the change of deadlines for supplying technical

documentation. This requires that deadlines for filling out orders be changed,

if only to the fourth quarter.

Finally, it has long been time to take practical steps towards the conversion to

variant designing. It appears that it should not be introduced immediately

everywhere, but gradually, either by sector of industry or by category of project.

Either way it is necessary to begin. We are confident that variant designing

will bring huge economic benefits to the national economy.

11,574

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18
CONSTRUCTION PLANNING AND ECONOMICS

COORDINATED SUPPLY OF MATERIALS NEEDED FOR CONSTRUCTION PROJECTS

Moscow EKONOMEKA STROITEL'STVA in Russian No 10, Oct 83 p 36-39

[Article by Yu. P. Sadakov, chief of Glavstroysnab [Material and Technical

Supply Main Administration], USSR Ministry of Construction: "Improving the

Organization of Material-Technical Supply to Construction"]

!

[Text] The June (1983) Plenum of the CPSU Central Committee once again drew

attention to the fact that the entire system of economic, organizational and

educational measures must be directed toward the rational utilization of raw

goods, materials, fuel, energy and other resources. The purpose of these

measures is the decisive turn of all plan and economic management activity

and the development of science and technology and all sectors and units of

the national economy toward more effective utilization of material resources.

To a significant degree, the present shortcomings in providing construction

sites with needed material resources stem from the stage of preparation of

the project documentation. Then they are intensified by the untimely inclusion into the plan of facilities under construction which have not been

fully provided for by 1 July of the preceding plan year, by the lack of

necessary planning estimate documentation, as well as by the untimely transfer of the planning estimate documentation to the site, including work blueprints for the annual work volume. This situation is also explained by the

fact that the project planning organizations developing the projects and

work blueprints for residential-civil construction in a number of cases do

not coordinate their projected design decisions with contracting constructioninstallation organizations and develop projects without consideration of the

established norms for material expenditure per one million rubles of construction-installation work. A similar situation is also observed in planning a

number of industrial enterprises.

In many projects in residential-civil construction the expenditure of sheet

metal and cement exceeds the control figures for the expenditure of these

materials which were considered in establishing the material expenditure norms

per iöne million rubles of construction-installation work cost. This excess

led in 19^2 to an overexpenditure of 48,500 tons of metal materials and 266,600

tons of cement on the whole throughout the USSR Minstroy [Ministry of Construction]. The greatest overexpenditure in sheet metal in residential construction

was allowed by: Georgian SSR Minstroy-(5,190 tons), Glawolgovyatskstroy

[Construction in Volga-Vyatka Main Administration] (7,650 tons), Uzbek SSR

19
Minstroy (4,700 tons),-Glavnovosibirskstroy [Construction in Novosibirsk Main

Administration] (3,060 tons), Turkmen SSR Minstroy (2,850 tons), Penza TUS

[expansion unknown] (2,720 tons), and Vladimir TUS (2,630 tons).

If we analyze the situation, it turns out that the projects for residential

houses of large-panel construction adopted by the construction organizations

bring an overexpenditure of sheet metal in the amount of 30,700 tons, which

comprises 63.3 percent of the sheet metal overexpenditure in all the residential construction implemented by the ministry.

It must be noted that the project planning organizations providing USSR Minstroy construction sites with planning estimate documentation are still not

fulfilling the directives of the CPSU Central Committee and the USSR Soviet

of Ministers dated 12 July 1979 No 695 regarding the compilation of reports

on the need for material resources by facility and construction on the whole.

The absence of such reports, particularly for facilities of production purpose,

hinders the organization of material resource supply to construction sites in

accordance with .the project plans and estimates, which is provided by the

indicated directive,and makes it impossible to effectively check the correspondence of the submitted planning estimate documentation to the established

norms for material expenditure. Such a situation leads to a reduction in the

responsibility of the project planning organizations for the quality of their

production in terms of expending basic materials for construction. This

suggests the proposal that all planning of the construction portion of industrial enterprises should be handed over for supervision by the contracting

construction ministries, retaining the need for prior coordination of overall

planning decisions projected by the technological project organizations with

the construction organizations at the pre-planning stage of industrial enterprise project design.

The indicated order of compiling all the planning estimate documentation will

make it possible to determine more effectively and correctly the need of

construction sites for materials according to project plans and estimates

before the start of the plan year. This will correct one of the major shortcomings in material supply to construction.

Greater than ten years of experience in material-technical supply to construction in the country through the territorial organs of the USSR Gossnab

[State Committee for Material and Technical Supply] allow us to conclude that

on the whole this is an expedient and effective organizational measure which

will benefit capital construction. However, for some reason at present it

is used only in part of the organizations performing construction-installation

work, and necessary measures are not being taken to ensure the transfer of

all construction sites included in the state plan for capital construction

to comprehensive material supply through the territorial organs of USSR Gossnab material-technical supply by orders of the construction-installation

organizations in accordance with their needs, which are determined by plans

and estimates.

Aside from the indicated badly needed measures for improving the supply of

materials, structures and products, a series of other problems must be solved

20
which affect not only the situation of material-technical supply, but also

have a direct effect on the end results of building production—the operational

introduction of the facilities.

Of course, a radical measure must be considered as the need for unconditional

fulfillment by project planning organizations, contractors, and particularly

planning organs of decisions regarding the order of site provision with planning estimate documentation and inclusion of only those facilities provided

with documentation into the construction plan.. However, in our opinion, a

no less radical measure should be also the increased requirements of the

contracting organizations to the customers and project organizations in regard to timely coordination of the design decisions in the projects for

construction organization quality and completeness of submitted documentation. Those subdivisions of USSR Minstroy which deal with project planning

organizations and customers on the indicated questions show not only better

work indicators, including also the end,results of building production, but'

also they are somehow able to solve all questions of material-technical

supply more easily, without great complications. Among such subdivisions

in the USSR Minstroy are: Glavzapstroy [Construction in Western Regions

Main Administration], Vladimir TÜS, Chuvash TUS, and-the Estonian SSR Minstroy.

In the other territorial subdivisions this work is also performed in some

measure, but it is not regarded as being the most important, determining the

course of construction. This is undoubtedly a major error on the part of

the managers of these subdivisions.

The defense of material need "by million" which exists at the present time

leads to numerous corrections in planning and implementing delivery of

materials and structures. The process of examining and defending the need

for resources usually takes a very long time, but it may be significantly

shortened if the substantiation of need for material resources is performed

using the capacities of the territorial computer centers and the Head Information Computer Centers of the ministry and the USSR Gosplan. The application

of computers will not only accelerate the implementation of this work, but

will also improve its quality.

At the present time, the territorial organs of the USSR Gossnab bear almost

no responsibility for the fulfillment of contract work plans by the constructioninstallation organizations and for the timely operational introduction of

production capacities and facilities. One of the main indicators of work by

the USSR Gossnab organizations is goods turnover, which does "not correspond

with the final work indicators of the construction-installation organizations.

Sometimes it is all the same to the USSR Gossnab organizations which products

to ship to the construction site—metal in assortment or some other materials,

since the indicator of their activity is the cost of materials delivered to

the site. This is still another one of the very serious discrepancies in the

joint activity of the organizations. In our opinion, in order to liquidate

this discrepancy it is necessary to:

tie in the work indicators of USSR Gossnab territorial organs with the work

indicators of construction organizations whom they supply with materialtechnical resources. It is true, however, that in order to accomplish this

21
it is necessary to transfer over all construction-installation organizations

of the given glavstroy, TÜS or republic construction ministry to guaranteed

comprehensive provision of resources through the USSR Gossnab territorial

organ. However, this must be done in the interests of the entire national

economy;

provide funds in the overall construction estimates for awarding prizes to

workers, pf the USSR Gossnab territorial organs, setting the award In accordance with timely, rhythmic and complete delivery of materials and products

and in accordance with the project of the building organization.

The system of material-technical resource provision according to the scheme

of USSR Gossnab territorial organ—construction-installation trust is presently

operating only in certain oblasts and republics. For example, in the VolgaVyatka territorial region this system (territorial' organ—trust) is in operation only for Glawolgovyatskstroy, while for the Mari TUS, Chuvash TUS and

Mordovian TUS who are subordinate to the same USSR Minstroy there is already

another system: USSR Gossnab territorial organ—USSR Minstroy TUS (territorial

organ—TUS). The allocation of resources to the TUS already reduces the

responsibility of the USSR Gossnab territorial organ for complete provision

of construction sites in these rayons in accordance with the needs determined

by plans and estimates.

In order to correct this clearly incorrect "order" in material-technical

provision, in our opinion it is necessary to extend the operation of the

system of USSR Gossnab territorial organ—construction-installation trust

(territorial organ—trust) to the entire territory where construction is being

implemented and to see that the regionalization of the USSR Gossnab territorial

organs serving construction corresponds to the regionalization of the USSR

SlnsfcEoy territorial construction administratiöiis (main administrations).

At the present time the substantiation of need for material-technical resources

according to the nomenclature of the USSR Soviet of Ministers and the USSR

Gosplan by territories, translated into provision through the USSR Gossnab

territorial organs, is implemented by the USSR Minstroy in the USSR Gosplan,

which then transfers these resources to the USSR Gossnab and the latter

transfer them to its territorial organs. In order to reduce these multiple

steps, it would be expedient for the USSR Gossnab to substantiate and distribute the resources among the organizations and also to be listed as the

fund keeper.

According to the effective order, the USSR Gossnab does not provide the USSR

Minstroy organizations with the full nomenclature of materials and products

used in construction. It does not supply fuels and lubricants, local materials,

machines and mechanisms, decentralized purchases and direct purchases. In

our opinion, it would be expedient to assign the USSR Gossnab to provision

of USSR Minstroy organizations with all building materials and products

through a single organ.

The advance stocking of materials by the USSR Gossnab for.the construction

ministries for the plan year is done in accordance with the base material

22
expenditures for the preceding year and before the development of the plan

for contract work. This order of stocking cannot consider the peculiarities

of work in the planned year, and the construction ministries in many cases

find themselves in a very difficult position in terms of resources. In our

opinion it would be expedient to establish a two-year period for planning

materials delivery with a yearly breakdown and with annual correction of the

envisioned amounts of materials, as well as to change either the times of

planning contract work or the times of advance stocking, bringing them into

line.

The existing order of non-uniform stocking of material resources by quarters

cannot help to provide for the normal material needs of construction sites.

For purposes of ensuring a rhythmic character in fulfillment of constructionassembly work, it is expedient that the legislative organs establish the

following order for •allocation :and delivery of materials to construction

sites: no less than 25 percent in the first quarter, 27 percent eachhin the

second and third quarters, and 21 percent of the annual funds in the fourth

quarter, with uniform delivery by ten-day periods throughout each month;

For building machines, mechanisms and means of transport: 65 percent in

the first six: months, 20 percent in the third quarter, and 15 percent of

the annual funds in the fourth quarter.

As a rule, the USSR Gossnab territorial organs do not accept materials and

products submitted by the construction-installation organizations as being unneeded or unusable and accumulated as a result of non-correspondence in work

planning times and their implementation, changes in the plans, or other

reasons. In our opinion, the USSR Gossnab should be obligated to accept

unneeded materials from construction-installation organizations at its supply

bases, permitting the possibility of their exchange for other materials and

products needed by these organizations.

In our opinion, there are serious shortcomings in the determination and allocation of funds for materials, which have a negative effect on the end

results of construction. We consider it beneficial to legislate the following

proposals in the established order:

The USSR Gosplan and USSR Gossnab should not use any reducing coefficients in

determining and allocating funds for materials except for the volumes of

economy in material resources provided by tasks given in the five-year plan.

In making allocations for effective types of steel instead of standard steel

grades, as well as substitutes for rolled stock, pre-measured glass and other

such operations, estimates should be based on real indicators for obtaining

quantities of these materials, without repeating the sad experience of past

years when construction sites could get neither the materials provided in

the standards nor their substitutes which had been promised in allocation of

funds.

An order should be established which provides for equivalent substitution of

materials specified in the standards whose need can temporarily not be satisfied

by the state of the resources.

23
All types of pipes for external networks: should be allocated according to

planning estimate documentation for the physical volumes of work, with specified delivery times and in amounts established in the work organization projects and coordinated with the customers.

The appropriate ministries and departments should solve the problem of full

provision of residential and social-cultural-domestic'construction with

linoleum made on a heat and sound insulating base and with other carpeting

materials by 1985.

The quota for economy of material resources should be established separately

for project planning organizations, customers and construction-installation

organizations.

By 1 July 1984, all house building combines, reinforced concrete product plants

and' wood processing enterprises of the USSR Minstroy should be transferred

over to direct long-term economic ties for the delivery of metal, cement and

lumber materials.

For purposes of improving the practice of material-technical supply to construction sites through the USSR Gossnab organs, in our opinion it would be

expedient to have the following: '" -.-...»

The USSR Gossnab and supplier ministries should reimburse the constructioninstallation organizations the material resources which they have overexpended

due to forced substitution of the project assortment for non-economic grades

when planning allocations to the supplier, due to substitution for other types

in the process of delivery, as well as losses associated with untimely delivery

of materials.

The USSR Gossnab should annually resolve the questions of compensating construction-installation organizations in the fourth quarter for delays in

material deliveries in the nine months of the current year by means of redistribution of resources.

S-tarting in 1984, the USSR Gossnab Soyuzglavkomplekts [Enterprises Main Administrations] should provide in full volume the assortment and delivery in accordance with project-order documentation for all construction sites, regardless of their estimated cost, all types of series, name-brand and non-standardized equipment (including product assortments for its manufacture), as well

as means of automation, security and fire signalling, management and control,

cable-conductor products and other products, instruments and special materials

in accordance with times coordinated with the customer, but no later than six

months prior to the operational introduction of the enterprise.

COPYRIGHT: Stroyizdat, 1983

12322

CSO: 1821/20

24
AGRICULTURAL CONSTRUCTION

CAPITAL INVESTMENT IN AGRICULTURAL CONSTRUCTION ANALYZED

Moscow EKDNOMIKA SEL'SKDGO KHOZYAYSTVA in Russian No 9, Sep 83 pp 72-77

/Article by V. Matyushin: "Evaluating the Effect of Agricultural Construction^/

/Text/ The communist party and the government of our country have repeatedly

emphasized the tremendous importance of raising the effectiveness of capital

construction in the interest of developing the national economy.

In the decisions handed down during the 26th congress, mention was made of the

need for "achieving radical improvements in construction and raising the

effectiveness of capital investments." A number of measures are presently

being carried out for the purpose of implementing these decisions.

In conformity with the decree of the CPSU Central Committee and the USSR

Council of Ministers entitled "Improvements in Planning and Intensifying the

Effect of the Economic Mechanism With Regard To Raising Production Efficiency

and the Quality of Work," USSR Gosplan and USSR Gosstroy have approved a new

and temporary standard method for determining the effectiveness of capital

investments, prepared by the Scientific Council for the Effectiveness of

Fixed Capital, Capital Investments and New Equipment, of the USSR Academy of

Sciences with the participation of USSR Stroybank /All-Union Bank for the

Financing of Capital Investments/.

. The prototype for this document was the standard method developed by the

scientists and leading specialists of our country under the direction of

Academician T.S. Khachaturov back in 1959. During the years which followed,

improvements were repeatedly carried out in its many parts, with no change

taking place in its overall content or in the criteria for evaluating the

economic effectiveness of capital investments. The diverse branch and

departmental decisions regarding the method for evaluating the effectiveness

of capital investments were based upon the conditions set forth in the

standard method. Thus, for a period of more than 20 years, the effectiveness

of all capital investments in our country has been evaluated using the abovementioned standard method. The capital investments were carried out only in

those instances where their effectiveness was borne out by computations based

upon the standard method. USSR Gosplan, USSR Gosstroy, USSR Stroybank and

other organizations exercised effective control over these procedures. Such

unanimity made it possible to regulate to a large degree capital construction

and to raise its efficiency.

25
In the standard method, by way of effect and depending upon the level of the

evaluation (national economy, branch, sub-branch, enterprise), use was made of

indicators for growth in national income, net output, profit and economices in

current expenditures. Differences were uncovered in the overall (absolute)

and comparative economic effectiveness of the capital investments.

The use for a period of more than 20 years of the recommendations found in the

standard method has shown that such an approach was not always justified. For

example, over the past 15 years the capital investments of a production

nature in agriculture were not repaid during the normative period either in

terms of the indicator for growth in national income, in profits or in

economies realized from a reduction in production costs.

By way of illustration, computations are provided in Table 1 which were carried

out using the statistical yearbooks "National Economy for 1965" and "National

Economy of the USSR for 1980."

Over the past 15 years, approximately 60 percent of the increase in national

income, which amounted to 26.6 billion rubles, was obtained as a result of

growth in labor productivity and a considerable portion of it was used for

wages. Thus the period for paying off 267.4 billion rubles worth of capital

investments in agriculture will amount to approximately 26 years (267.4:10.6).

If we evaluate the effect of a savings realized from a reduction in production

costs (in 1980 agriculture had losses amounting to 509 million rubles and in

1965 — 568 million rubles, that is, the difference amounted to a savings of

59 million rubles), then the period for repayment is computed in terms of

many decades and considerably greater intervals of time than the time for

using the fixed capital, in terms of its technical characteristics.

An analysis of the use of capital investments in the sphere of material

production reveals that under modern conditions the recommendations found in

the standard method should be used with extreme caution. Yes and the very

practice of a national economic attitude towards determining the effect of

capital construction is for all practical purposes not taken into account in

the standard method. For example, during the 11th Five-Year Plan, in

conformity with the decisions handed down during the 26th CPSU Congress, ehe

most important directions to be pursued for raising the effectiveness of

capital investments are:

.. .priority development for those branches which ensure stability and balance

for expanded reproduction, a strengthening of the country's defensive

capabilities and implementation of the Food Program;

.. .an increase in the resources to be used for the technical re-equipping and

modernization of existing enterprises, based upon all-round mechanization and

automation and the introduction of new technological processes which call for

the extensive renovation and modernization of equipment.

...an improvement in construction and a reduction in the periods'required for

mastering production capabilities placed in operation, through the construction

of production enterprises and installations, with associated production efforts,

housing and installations of a non-productive nature.

26
These trends for raising the effectiveness of capital investments are extremely

promising for many years into the future and do not coincide with the

recommendations in the standard method. To the contrary, those factors which

appear to lack promise in the standard method occupy an important place in the

national economy. Thus a considerable proportion of the capital investments

in modernization, technical re-equipping and expansion at the present time is

producing a lesser effect than new construction. As a rule, this is explained

by the fact that serious repair operations require the removal of many items

and thus the growth in specific capital investments exceeds the anticipated

increase in profits (or other indicators of the effect in terms of the standard

method). However, in conformity with the decisions handed down by the party

and government, one general trend in the development of the national economy

is that of modernization, technical re-equipping and the expansion of

existing production efforts.

TABLE 1

Capital Investments and Some Indicators for Agricultural Development

1965

1 ! 1980 1980 in %

of 1965

Capital investments in the production sphere . 267.4 «•

for 1966-1980, billions of rubles

Gross social product, billions of rubles 69.1 150.2 217.4

National income, billions of rubles 42.4 69 162.7

Growth in labor productivity, % 100 167 167

Losses, of state agricultural enterprises, 0.568 0.509 89.6

billions of rubles

The further development of any branch of the national economy of the USSR is

directly dependent upon the expanded reproduction of fixed capital and upon

the construction of new capabilities and installations or their modernization

and technical re-equipping. Moreover, with an increase in the amounts of

reproduction of fixed capital, the importance of the effectiveness of

expenditures (investments) for this reproduction increases.

The effectiveness is evaluated according to the indicators for specific capital

investments, corrected^ expenditures, repayment periods, coefficients of

effectiveness, combining of profits in different variants, monetary evaluation

of construction and the indicators for installations and capabilities placed

in operation. In particular, these indicators are employed extensively at

those planning institutes where the effect being realized from the reproduction

of fixed capital is still not being determined in a correct manner.

Nor is the problem simply one of mistakes. In some instances there is a lack

of desire to carry out variants of solutions which have proven their worth if

they do not furnish a reduction in specific capital investments. Experience

has shown that DSK's /house-building combine/ are extrmely useful to the

national economy and yet more than 20 years experience in the operation of

these organizations, experience associated with the expanded reproduction of

these construction enterprises, has not been summarized and as yet there is no

27
plan for their reproduction. This is occurring owing to the fact that the

DSK's, compared to precast reinforced concrete enterprises, sharply increase

the specific capital investments and lower their economic effectiveness. In

actual practice it turns out that each element engaged in erecting such

combines is forced into solving in its own way all problems concerned with the

remodeling of reinforced concrete product plants and adapting them to DSK

operations.

Following the March (1965) Plenum of the CPSU Central Committee, a great deal

was accomplished towards expanding and raising the level of agricultural

construction as a new branch of the national economy.

The May (1982) Plenum of the CPSU Central Committee, in addition to examining

measures for further developing agricultural construction, also assigned new

tasks for raising the effectiveness of capital investments in agriculture. In

the decree of the Plenum, mention was made of the need for raising "the

responsibility of the party, soviet and agricultural organs and the leaders of

construction organizations and also enterprises and farms for the effective

use of capital investments and the timely placing in operation an mastering

of capabilities at agricultural installations."

The Food Program calls for capital investments to be used for developing

capabilities that will make it possible to increase rapidly the production of

food goods, for the technical re-equipping, expansion and modernization of

existing enterprises and production efforts and for accelerating the placing

in operation of projects which are under construction.

In agriculture the plans call for capital investments to be concentrated on

raising the fertility of lands and creating a stable feed base for animal

husbandry and capabilities for the primary processing of goods, for the

construction of warehouses and storehouses, for the modernization and expansion

of animal husbandry facilities and also for the social development of the rural

areas. During the May (1982) Plenum, the CPSU Central Committee defined

measures for improving the organization of agricultural construction,

developing its production base by creating capabilities for the production of

sets of light structures of a raised plant readiness and increasing the

production of local construction materials.

The implementation of a grandiose program for capital construction in the rural

areas during the coming years is raising a persistent need for analyzing past

activity in this area.

It is significant that all construction in the rural areas is carried out on

the basis of technically and economically sound plans. In the TSO /technical

and economic justification/, the effect to be realized from planned

construction is determined in complete conformity with the recommendations

set forth in the standard method. No information is available on mistakes

embodied in the computations carried out. Yes and it is difficult to expect

such information to be available, since state control over the correctness of

the computations in the TEO is being exercised in all areas throughout the

country.

28
However, there was not one building project which could have produced the

expected effect. The fragmentary information of some agricul-tural leaders

concerning the ineffectiveness of production installations that had been

erected was not taken seriously. As a rule, the planners, builders or those

who mastered the capabilities and installations placed in operation were

blamed for the deviations from, the computed effect. The deviations were

general in nature and, it follows, they truly reflected the branch level

achieved in the development of productive forces, that is, they were an

objective reality. However the basis for the computations — the standard

method — was not called into question nor considered. And up until now

construction has been justified and capital investments allocated if the

methods employed in the computations were those recommended in the standard

method.

Experience has shown that under modern conditions the standard method requires

a radical and basic review. This is borne out by the following. First of all,

all capital investments in agricultural fixed productive capital over the

past 15 years have not paid for themselves within the normative period or even

close to it. Secondly, over the past 15 years the pool of agricultural

equipment has been replaced more than four times and this means that the

totality of power and operating machines in agriculture is being used just

slightly more than 3 years. For certain types of equipment, it is still

possible to justify somehow such a short period of use. However, for the

totality of technical equipment available, this can be explained only by an

unlimited and uncontrolled allocation of machines and equipment on the one

hand and by a ruthless attitude towards equipment being made available on a

cost-free basis on the other.

Thirdly, of the 197.2 billion rubles worth of capital investments used,

according to our computations, over the past 15 years for the expanded

reproduction of fixed productive capital in the form of buildings,

installations and other objects of long-term use, 71 billion rubles worth or

36 percent did not produce an increase in the fixed capital (see Table 2)

An analysis of the dynamics of growth in individual types of agricultural

.capabilities during these same 15 years revealed that the amount of animal

husbandry facilities placed in operation was greater by several times than

the increase in the number of livestock. Thus, during the 15 years almost

three cattle billets were built per head of increase in the herd, for hogs --.

almost 4 and for sheep — more than 7.5 billets. As a result, new facilities

were provided for 54.8 percent of all of the cattle, 73.9 percent of the

hogs and 62.8 percent of the sheep.

The existing standard method for determining the economic effectiveness of

capital investments has furnished assistance for many years in the use of such

an approach for capital investments. It makes it possible to prove that

which cannot be demonstrated and to reveal the advantages of eliminating not

only certain operational installations but also the settlement of entire

villages and towns. As a result, a reduction takes place in the volume of

agricultural production, poor use is made of the land and economically sound

capital investments in agriculture are less effective than similar expenditures

in other br.anches of the national economy.

29
TABLE 2

Dynamics of Fixed Productive Capital for Agriculture and Capital Investments

In It (computed using statistical yearbook data)

"""'' 1

1965 1980 Capital

Investments

Difference Between

' u Capital Investments

Bills. Bills. for 1966- and Increase in

of % of % 1980, in Capital, billions

Rubles Rubles billions of of rubles

rubles

77 100

83

238 100

213.2 90

Fixed Productive

Capital, total

Including — reproduced 63.7

by means of capital

investments

Of which amount:

power and operating

machines and

equipment

buildings, facilities 46.8 61 173.0 73

and other fixed

productive capital

16.9 22 40.2 17

287.4

90.2

197.2

-138

-67

•71

At the present time, the fixed productive capital of agriculture constitutes

13.6 percent of the fixed capital of the national economy, that for

construction — 3.2 and industry — 31.6 percent.

The existence in agriculture of 238 billion rubles worth of fixed productive

capital, a large portion of which was placed in operation during the past 15

years, serves to underscore the need for searching for means for intensifying

its utilization and it also points out that the path of extensive development

has practically exhausted its usefulness and does not<%produce the desired

results, despite the technical-economic justification for the existing methods.

As early as 1970, more than 60 percent of all capital investments in industry

were employed for modernization and the expansion "and technical re-equipping

of existing production operations. In agricultural production construction,

this proportion was so low that the USSR TsSU /Central Statistical

Administration/ did not even publish information on the re-equipping and

modernization of agricultural production installations.

In order to accelerate the technical re-equipping and modernization of

existing production operations in industry, the plans called for organizationaleconomic measures aimed at interesting enterprises in carrying out this work.

For the purpose of creating additional conditions for accelerating the work of

technical re-equipping and modernization, the leaders of production

associations and enterprises were authorized to approve the title lists for

these purposes regardless of the overall estimated coät of the work and to

employ correction factors for the planned norms, including overhead expenses

which take into account the specific conditions for performing work in

existing departments. The issuing of bonuses for carrying out technical

30
re-equipping work, in the amount and manner prescribed for modernization was

also authorized.

A large proportion of capital investments is still being used for modernization

and technical equipping in agriculture, mainly for renovating the pool of

equipment. A typical feature of modern agriculture is the desire to eliminate

installations which could continue to be of great use for many decades. As

already mentioned, over the past 15 years from 3 to 7.5 livestock billets have

been built for each unit of increase in the number of animals. This indicates

that livestock facilities which could still be employed for many decades are

being destroyed in a systematic manner throughout the country.

There are many reasons for such at attitude being displayed towards facilities

which were built earlier. One such reason — the comparative ease in solving

new construction problems owing to the subjective characteristics of

individual construction leaders and the free nature of expenditures.

Modernization and technical re-equipping is being held up by complicated

formalism. This is clearly observed during a comparison of the potential of a

plant director and that of a leader of an agricultural enterprise who is equal

to the former in rank. For the most part, a plant director solves the

modernization problems himself, using his own initiative he can make a

department out of a warehouse or he can change the production specialization

of any department. As a result, for example, the same buildings are employed

for many decades at the plants.

Another situation prevails in agriculture. Here modernization requires the

consent of an institute of Gosbank, which in turn requires coordination with a

non-departmental planning institute. The latter insists on the introduction

of a "fresh" standard plan for new construction. This plan clearly rejects

a traditional building system for the rural area and brings about the

demolition of buildings and installations which have not lost their use value.

And if the traditional building system was justified and truly useful to the

rural areas under the given specific conditions, then the effectiveness of the

new construction is problematical to a definite degree and is computed only in

documents. The specialists are aware that the calculations of the planners

have not as yet been borne out in actual practice and thus a hasty decision in

this work is not justified.

An analysis which we carried out revealed that during the 15 year period 71

billion rubles worth of capital investments did not produce an increase in the

fixed productive capital, since the majority of this capital was used for the

replacement of buildings (installations) which had been torn down. A

considerable portion of the installations which were eliminated could have ...

been utilized if they had been re-equipped in the proper manner. This factor

alone, over the past 15 years, would have made it possible for the national

economy to realize considerably greater advantage from the annual use of

several billions of rubles worth of capital investments and a corresponding

proportion of material and other resources. Modernization work, especially

for animal husbandry facilities, is very advantageous. For example, over the

course of two summer seasons at the Kolkhoz itneni Radishchev in Smolensk

Oblast, while the cattle were out on the pastures, the livestock facilities

were completely renovated. The capacity of these facilities increased By

31
almost 40 percent and the number of service personnel decreased by 50 percent.

Instead of the 3 million rubles required for new construction, only 200,000

rubles were expended for modernization.

Certainly, it should be taken into account that increased specialization and

the development of integration are creating objective prerequisites for

increased expenditures for the modernization and technical re-equipping of

agriculture.

At the same time, other conditions must also be considered. First of all,

the rule should be established that the tearing down (destruction, removal)

of buildings and installations which have not yet exhausted their social use

is completely unacceptable. In rare instances, exceptions can be made to this

rule, but there must be very sound reasons for doing so. Secondly, a

requirement exists for expanding the rights of a leader of an agricultural

enterprise with regard to the modernization of production installations or the

remodeling, for example, of a poultry or calf house.

Beyond any doubt, these actions will not solve all of the problems or exhaust

all of the potential opportunities for making the best use of agricultural

capital investments. However the use of these factors is making it possible

to reduce substantially national economic losses caused by the unjustified

elimination of costly buildings (installations), which still possess some use

value.

Modernization in the rural areas has still not become a common occurrence

mainly owing to weak training for the agricultural specialists. However,

there can be no doubt but that in the foreseeable future the principal

proportion of capital investments in agriculture will be employed for

modernization and technical re-equipping. In addition to the social-economic

prerequisites, the technical solutions are also available for accomplishing

this. For example, production construction in the rural areas in recent

decades has as a rule been carried out using standard plans which provide for

the subsequent modernization of the facilities (wide spacing of columns,

improvements in power supply, protective measures). Under these conditions,

a requirement exists for reviewing the existing method for determining the

economic effect from capital construction in the rural areas and for creating

a standard branch method which by its very nature will promote the interests

of the national economy, the branch and each element of the branch.

The standard method evaluates the effect of capital construction depending

upon the amount of increase in national income or a part of it (profit, net

income). This is the correct approach.

There is another inaccuracy: this type of effect is presented by the standard

method as being priority in nature. And indeed the manifestation of the

effect of capital investments is complex in nature.

The purpose of capital investments is to satisfy completely the specific -and

constantly increasing requirements of the national economy. And this goal can

be achieved through the observance of definite conditions, including that of

revealing the true requirements for capital construction. This implies that

32
capabilities and installations must be developed to conform with the

requirements for them and that their appearance will make it possible in

actual practice to satisfy the vitally important interests of the population

and the national economy.

A requirement also exists for determining in a more sound manner the degree to

which the requirements conform to the technical-economic and social

characteristics of the capabilities and installations placed in operation.

The failure to take this circumstance into account in production construction

can lead to a situation wherein a considerable proportion of the capabilities

placed in operation is not utilized in the planned volume generally or for

an extended period of time. And although there may be "objective" reasons

at all levels for each of these instances, nevertheless it comes as a surprise

that these "reasons" were not taken into account prior to the commencement

of construction and the expenditure of many millions of rubles.

The usefulness of modernization and technical re-equipping is evaluated as a

rule depending upon the degree of increase in production or reduction in

expenditures. Such a consumer character cannot be considered as the only

correct solution. We are of the opinion that modernization and technical

re-equipping in agriculture must be constant in nature regardless of

expenditures, provided that such development of capital construction, while

causing a minimum of harm, does not disrupt but rather develops the microenvironment and the usual lines of communication and improves the conditions

for vital activity by a rural worker.

The above tends to indicate that the chief goal of capital construction is

that of labor expenditures, time and resources invested in things which are

of maximum benefit. And only after this is the means for increasing the

useful character of a thing, with minimal expenditures of labor and material

and financial resources, considered to be an important factor. On the one

hand, this promotes preservation of the existing potential and prevents the

disruption and destruction of that which is useful, while on the other hand

it brings about an increase in national income and profit and reduces

production costs.

Consideration must be given to the problematical nature of carrying out an

evaluation based upon an increase in national .income or a portion of it that

is the result of an investment of live labor during a given year. A desire to

increase it can be ensured through the development of labor-intensive

production efforts. But this type of approach is not in accord with the goals

for a developed socialist society.

The complicated nature of the approach for evaluating effect using the standard

method and the indicators for profit, production cost and specific capital

investments derives from the fact that these indicators are derivatives of the

construction volume, expenditures and prices. In existing practice, the

prices for industrial products are reviewed by five-year plans and for

construction — once every 10-15 years. Since an economic justification and

determination of the effect in time by no means coincide with the cycles for

reviewing prices or with the completion time for the construction, the

existing method for determining the predicted (expected) effect of capital

construction becomes uncontrolled.

33
In addition, when determining the effect, the standard method negates the

possibility of employing individual factors, the use of which would make it

possible to determine more accurately the effect of capital construction.

The failure to take into account the economic effect of amortization on

renovation leads to a situation wherein the entire economic process of expanded

reproduction of fixed capital (resources) is disrupted. This occurs owing to

the fact that the various norms for amortization deductions take into account

the wear and tear and to a certain degree the obsolescence of those resources

(capital) for which these norms were intended. It would seem that under these

condt&tions the total amount of the amortization deductions would be adequate

for the expanded reproduction of that capital for Which they were computed.

And actually a comparison of the data reveals that a considerable portion of

the amortization for renovation in industry, transport and communications was

employed for the expanded reproduction of fixed capital. Moreover, this is

the portion which testifies to the fact that amortization for renovation is

aimed not so much at completely restoring worn out fixed capital (resources as

it is at reproducing completely different fixed capital of a production or

non-production nature.

As a result of such manipulations, a devaluation takes place in the very forms

of amortization, the amount of which is practically impossible to evaluate in

the process of expanded reproduction.

Several methods are available for improving the work. For example, a return

to the past and abolishing the amortization norms generally and establishing

their overall amount in the financial plans as a mandatory type of expenditures

and sources for the reproduction of fixed capital.

If we take into account the degree of wear and tear and obsolescence of the

means of labor using amortization, then the norms should be differentiated not

only by types but also depending upon the time of use of the means of labor.

In this instance a flexible norm scale should be established which becomes

greater as more use is made of a particular type of equipment or installation.

Such an approach is justified owing to the fact that with the passage of time

fixed capital (resources) loses its quality characteristics and ability to

ensure the thrifty production of high quality products. At the same time, the

more these resources are used, the greater the expenditures required, with the

passage of years, for maintaining them in the condition required for operation.

Under modern conditions and owing to the absence of flexible norms, technical

resources are quite often held too long, since the expenditures for their

maintenance in the form of amortization deductions are negligible.

However, for any solution variant, the amortization deductions should either

be taken into account in the computations of the effect of capital construction

or they should be abolished altogether. In the latter case, the country's

amortization fund should be defined in the plan for the redistribution of

profits, since this is considerably more simple and more convenient than the

present accounting method.

An analysis of management practice reveals that under modern conditions the

accepted system for evaluating the effect of capital investments, reinforced by

34
the standard method, is in need of further improvements. Emphasis upon

evaluating effect based upon production profitability or upon individual

capital investments has not proved its worth,, despite the fact that it made,

it possible to regulate somewhat the distribution of the limits for capital

investments. Moreover, in some instances this method of evaluation led to

irreversible consequences. In particular, complications developed in

agricultural production and its efficiency declined. To a certain degree, this

occurred owing to the use of an incorrect approach being employed for evaluating

the effect of agricultural capital investments.

COPYRIGHT: Izdatel'stvo "Kolos", "Skonomika sel'skogo khozyaystva", No 9, 1983

7026

CSO: 1821/14

35
AGRICULTURAL CONSTRUCTION

GROWTH OF RURAL HOUSING FACILITIES NOTED

Tatar ASSR

Moscow SEL'SKAYA ZHIZN» in Russian 16 Sep 83 p 2

[Article by M. Nagavev, first secretary of the Zainsk gorkom of the CPSU, Tatar

ASSR: "Quite a Lot Has Been Done, But We Need to Do More"]

[Text] Our rayon is close to the giant motor vehicle plant, KamAZ. New cities

have grown up alongside it, industry is developing rapidly, and there is no end

to the advertisements: "Wanted," "Come to work for us," "We are training

specialists" and others like these. In short, the advertisements are attractive to many people. The rates of migration from nearby towns and villages

far exceed the natural rates defined by the demographers. There was a time

when the rayon lost more than 1,300 residents in a year, mainly young people.

Can you imagine? Every able-bodied individual was especially important on the

kolkhozes and sovkhozes. And there was a special need for the development of

agriculture in the suburban areas!

We began building livestock complexes, expanded the area of irrigated land and

obtained additional modern equipment. In other words, it became realistically

possible to industrialize and intensify agricultural production, and the youth

began taking a different view of farm work. However, ... construction rates

for housing, cultural and personal service facilities lagged far behind the

construction of production facilities. Only 16 percent of all capital investments on the rayon farms was applied for these purposes during a 10-year period.

The CPSU gorkom was concerned about all of this, of course, especially since

party decisions directly indicated the need to eliminate the disproportion as

rapidly as possible.

We began our effort to attract and retain personnel in the rural area by stepping up housing construction. The task was of concern to everyone, but it was

somewhat difficult to accomplish. We lacked experience, and there was no clearly

conceived system for developing the communities. Many of the farms lacked plans

for laying out the settlements. On some kolkhozes and sovkhozes, it should be

frankly stated, they began to build any way they could. A total of 7,000 square

meters of housing was built in the rayon towns during the 10th Five-Year Plan,

and most of that lacked municipal conveniences and engineering development,

heat was frequently provided by ovens, and there were at best only communal

storage units.

36
This was not a thorough solution to the problem. The people did not develop

private plots—the situation did not permit this. While working*on a kolkhoz or sovkhozs they continued to obtain their food from the public stocks.

The matter was extensively discussed in the collectives of kolkhozes, sovkhozes and the construction organizations with specialists and planners invited

to take part. It was then brought up for discussion at a plenum of the party

gorkom and a session of the rayon soviet of people's deputies. It was firmly

decided that further development would proceed only in a comprehensive

manner according to general plans, which specified the most efficient distribution of housing, roads, cultural and personal service facilities, medical

and trade services, schools, children's establishments and public service facilities. The "Tatkolkhozproyekt" institute in JCazan and its Nizhnekamsk branch

developed plans for laying out the central settlements of all the rayon farms.

The headquarters headed by the secretary of the party gorkom took on the operational supervision and coordination of the work of all the construction organizations and the monitoring of the program's fulfillment.

We began^ with one of the most backward and unfertile farms—the "Krasnyy partizan" sovkhoz. The comprehensive development was carried put by contract subdivisions, sponsored by city enterprises and by the sovkhoz itself. The

central settlement was literally transformed in 2 years. A new street of welldesigned and outfitted, single houses and duplexes with several rooms, a large

kitchen-diningroom, a basement and other household areas, came into existence.

Next to them were 10 hundredths of a hectare for private plots and outbuildings

for livestock and poultry. Heat was delivered to each apartment from a central

boiler room. The apartments had hot and cold water, a sewage system and gas.

There were street lights. The street and the sidewalks were covered with bituminous concrete, and trees were planted along both sides. The town and the

dairy complex were linked to the city with a concrete highway. A cultural

center, a dinning hall, a kindergarten, a general personal-service facility,

a medical center, stores and a communications section were built.

"Eating brings on the appetite" as they say. We now see that we can and must

continue the development work. The large amount of work already accomplished,

however, has rapidly produced a practical effect. Suffice it to say that the

sovkhoz is now totally provided with personnel in the leading occupations. The

youth return here after serving in the army.' People have also moved here, who

at one time preferred working in industry to farm work. Some individuals are

hesitant to use the words "yours" and "ours" when discussing changes in their

native village, which they abandoned at one time and which they did not help

to restore. That is all past, however,.».! can say with satisfaction, however,

that this sovkhoz has gone from a lagging farm to a progressive sovkhoz in 5

years.

The comprehensive renewal of central settlements under general plans, strictly

observing prescribed proportions for housing, cultural and personal service and

production facility construction..has also become the basic policy in the construction of towns in our rayon. At the present time this work is underway on

the "Rossiya" kolkhoz and Kolkhoz imeni Lenin. We shall then begin working

on another 4 farms where preparatory work based on planning estimate documentation is already underway.

37
The developemnt of a unified policy and the active involvment of city and rayon

organizations in this matter helped to considerably accelerate the construction

and development. A total of 11,550 square meters of housing was ready for occupancy in the rural area during the first 2 years of the 11th Five-Year Plan.

Housing construction by individual builders—the kolkhozes and the sovkhoz workers themselves—have stepped up. The farms helped them. A total of 43 such

homes have been built during the past 2 years. This is only the beginning, however.

On the rayon scale,I could cite some fairly impressive figures for the construction of clubs, cultural centers, hospitals, schools, kindergartens, stores,

and dining halls. All of this, along with the housing construction, has entailed

the expansion of various services and COncern for the development of the communities. The central settlements of all 20 kolkhozes and sovkhozes in the rayon

have now been linked to the rayon center with good roads for dependable yearround travel.

In the decree passed by the CPSU Central Committee and the USSR Council of Ministers "On Measures to Further Improve Housing, Municipal and Personal Service,

Social and Cultural Living Conditions for the Rural Population" an important

role is assigned to construction industry enterprises and to city and rural

housing construction combines. Subdivisions of "Kamgesenergostroy" are operating

in our rayon. During the past 10 years these leading organizations have applied

14.4 million rubles worth of capital investments in rayon towns. Only one

seventh of this is being used for the construction of housing and social and

cultural facilities. During this entire period not a single home of the type

designed for central settlements has been erected in the rural area. We have

a great deal of difficulty concluding contracts for housing construction,

and when we do it is ordinarily for multistorey housing. I do not need to point

out that high-rise apartments are not suitable for the rural resident.

Unfortunately, the situation in our "Tatkolkhozstroy" construction combine in

Zainsk is not much better. It has a capacity of 85,000 cubic meters of reenforced concrete products and has mastered the production of totally prefabricated duplex houses of the type designed for central settlements with outbuildings also manufactured at the plant. Last year it turned over 110 of these

houses, more than 40 of which were for our rayon. People are very anxious to

move into such farmsteads.

But there are not enough of them! The combine's capacity and-its production

area would make it possible to increase the output of such homes to 300 a year

within the near future and without additional special outlays. This would be

600 convenient apartments. The rate of the increase is such that it has taken

the combine almost five years to reach today's level, however. There is not

enough equipment or rigging, and funds for metal and cement ordinarily do not

exceed two thirds of the need. Keramzit is the most "unfortunate". A total

of more than 28,000 cubic meters is needed. I believe that "Tatkolkhozstroy"

and "Roskolkhozstroyob"yedineniye" could devote more attention to this promising

undertaking.

38
On the other hand, we need to take a self-critical look at our own affairs,

at local possibilities for the use of construction materials. It is a simple

but thankless matter to complain about a shortage of metal and cement with

construction being carried out on such a grand scale in the nation. Let us

take a look at our own failings. We have not yet faced up to the task of accelerating the construction of new housing for all of the leaders of kolkhozes

and sovkhozes, city and rayon organizations and enterprises. There are still

farms on which the reconstruction of the villages has-not been seriously undertaken, where only one or two apartments are built each year by the farms using

their own materials and labor. The- party gorkom and the primary party organizations are now performing a certain amount of work with this category of leaders and specialists. We cannot rely entirely upon contract organizations. In

many places housing can and must be built by the farms with their own construction teams, however small.

Chuvash ASSR

Moscow STROITEL'NAYA GAZETA in Russian 9 Oct 83 p 3

[Article by TASS correspondent V. Ivanova, Batyrevo, Chuvash ASSR; "The Heat

From One's Own Hearth"]

[Text] The fact established by the sociologists that people are attached to the

land most strongly by their own home has been convincingly confirmed in Batyrevskiy Rayon, Chuvashia. The youth are not leaving from there.

Never before have there been so many housewarmings in this remote rayon as we

have recently celebrated. The state and the farms are building a great deal

of housing for the young specialists. Most of the Batyrevskiy Rayon people like to

build their own houses, with their own means, in the ancient peasant tradition.

A total of 450 new houses have been built in this way during the past 2 years.

These are well-built, spacious stone houses with outbuildings.

A great deal of credit goes to the kolkhoz workers. They issue long-term loans

under good terms to the builders of new houses. They help them with construction

materials and provide transportation. Specialized teams have been created on

some farms to help the builders.

The ancient Chuvash custom of "Nime,^'Mor mutual assistance, has been revived

in the communities here. The walls of the houses are erected by the entire

community working together. Kolkhoz joinersr carpenters and painters, therefore, got involved in the work. They are paid at fixed rates. This is less

expensive'for the rural residents, and the work is.performed more rapidly.

The kolkhoz municipality sees to it that the new homes has electricity, gas,

heat and. water, help to maintain housing in proper condition and to make prompt

repairs. The rural soviet sees to it that the village streets are developed

properly.

The custom by which Batyrevskiy Rayon residents build their own houses has saved

the state around 33 million rubles over the past five-year period. The kolkhozes

39
and sovkhozes have also benefited. During this period more than 2,000 young

families have planted their roots firmly here in their native area.

It was stated at the June 1983 Plenum of the CPSU Central Committee that measures directed toward the social restructuring of the villages are an organic

part of the Food Program. The example of Batyrevskiy Rayon and neighboring

Yal'chinskiy Rayon is confirmation of this.

11499

CSO: 1821/05

40
HOUSING CONSTRUCTION

BLOW METHOD ADVOCATED TO ACCELERATE HOUSING CONSTRUCTION

Moscow BYULLETEN* STROITEL'NOY TEKHNIKI in Russian No 10, Oct 83 p 2-5

[Article by V. F. Illarionov, deputy director of the Central Committee Section

of the Professional Union of Workers in Construction and Industrial Construction

Materials: "Building Housing by the Flow Method"]

[Text] The 26th CPSU Congress named the scope 'of residential construction

which has unfolded In the country as our great social achievement. This is

confirmed by the entire course of implementing this most important social

program of the Soviet people. In the past two years alone, over 213 million

square meters of overall residential housing have been introduced;into

operation, general education schools for over two million students have

been built, as well as pre-school institutions for 1.1 million pupils,

hospitals with 127,000 beds and a number of other cultural-domestic facilities.

The mastered capital investments in residential construction In the past two

years have Increased by 15.6 percent as compared with 1980.

The provision of overall area per single resident comprises 13.5 square meters

in the cities and 14.6 square meters in rural areas. By 1985 the housing area

will be brought up to 13.9 square meters in the city and to 14.9 square meters

in rural areas for each resident.

The resolution of the CPSU Central Committee adopted in the current year, "On

Measures for Ensuring Fulfillment of Plans for Construction of Residential

Houses and Social-Domestic Facilities", is directed toward the solution of

this complex social problem. Complex and crucial problems are facing builders

in the current year. The plans call for the operational introduction of

residential houses with overall area of 106.6 million square meters, schools

for 795,000 students, hospitals with 52,000 beds, and a number of other

facilities of cultural-domestic function.

In order to realize these projections and to prepare a broad front for subsequent years, it is necessary to eliminate the significant shortcomings,

to mobilize the available internal reserves, and to make broader use of the

experience acquired by leading collectives.

Builders have someone^to set the example and someone to learn from. Tens of -

house building combine collectives and trusts have completed their assign41
ments for the first two years of the five-year period ahead of schedule and

are performing outstanding work in the current year. A brilliant example of

selfless labor on the pre-schedule fulfillment of plans and socialist responsibilities in the third year of the five-year period is being exhibited

by the Communist Labor Collective of the Belotserkovskiy House Building

Combine under Kievoblpromstroy [Kiev Oblast Industrial Construction Main

Administration]. It reported completion of the two-year program ahead of

schedule. In addition to the plan, residential housing with overall volume

. of almost 22,000 square meters was introduced into operation. Based on the

further development of technical progress and the introduction of leadinp

labor methods and progressive technology, the combine has completed its

transition to,the flow system of organizing building production. Instead of

small non-eoordinaged work brigades, large effective collectives have been

created at the enterprise and a method of planning and supply with materials

and structures for an enlarged work crew has been introduced after the example

of the Viimitsapromstroy Combine.

The assembly of housing at the Belotserkovskiy House Building Combine Is

done on a conveyer according to the "plant—transport—construction site

method. . The open flow order has made it possible to introduce precise work

at all segments of the technological flow and to avoid idle time and work

stoppage. The assignments for operational introduction of housing are overfulfilled every month. The construction start program is apportioned equally

by months. The graphs on work production are strictly observed.

For over 20 consequtive years the collective of the country's well-known Tallin

House Building Combine has been working rhythmically, achieving not only

fulfillment, of the ongoing construction progräm, but also the reduction in

cost of one square meter of housine area. Reconstruction is presently being

done at the combine in Tallin. Upon its completion, the enterprise will be

able to manufacture houses of n«w, Improved series. There is also much to be

learned from the organization of labor and Increased effectiveness of capital

investments at the Leningrad and Moscow house building combines, at the Kharkov

House-Building Combine, at the combines in Donetsk, Alma-Ata, etc. This

positive experience is being generalized by the ministries and administrations,

and by the Central Committee of the Professional Union for Workers in Construction and the Building Materials Industry. New beginnings and valuable

initiatives are being engendered in the course of socialist competition. The

collectives of the Minvostokstroy [Ministry of Construction in the Far East

and Transbaykal Regions] subsections are competing under the motto "Leading

Pace to Housing Construction!" in the current year. The responsibilities of

the labor collectives are confirmed by engineering computations corresponding

to organizational-technical measures. Last year the builders of Transbaykal

and the Far East successfully realized the task of housing introduction and

are today working at an increasing pace. Their patriotic Initiative on

housing construction ahead of schedule has been praised by the Minvostokstroy

collegium and the professional union Central Committee.

The Professional union Central Committee in conjunction with the ministries

and departments has praised the initiative of leading collectives in the

sector on the accelerated construction of residential.housing. For the first

42
time in the current year, socialist competition has been organized among the

collectives of the largest glavks [main administrations] engaged in residential housing construction in Moscow, Leningrad, Kiev, Alma-Ata, Tashkent,

and Baku. The generalization and promulgation of the experience of these

leading collectives will facilitate the development of mass socialist competition and increased effectiveness of residential-civil construction in the

country.

This year new conditions for All-union Socialist Competition have been

ratified, where the basic indicator includes plan fulfillment on the introduction of housing and social-cultural-domestic facilities. Without ful-'

fillment of this indicator, the economic managers and professional union

committees will not present the collectives for consideration for firstclass awards. This will even more greatly"increase the role of socialist

competition in mobilizing the collectives for the fulfillment and overfulfillment of plans for residential-civil construction.

As before, in achieving the best results in labor with the least expenditures,

an important role is given to such a specific form of production management

determined by the builders themselves as the brigade contract,,r Self-supporting

brigades have become true laboratories for leading methods of labor and

schools for training the working man. At the present time, over 82,000

brigades are working in the sector according to the method of N. A. Zlobin.

This progressive method last year fulfilled 42.1 percent of the overall

volume of construction-installation work. It is notable that this method

of organizing construction is most widely used in erecting housing and socialcultural-domestic facilities. In the second year of the five-year period,

self-supporting brigades realized 62 percent of the work. This included

brigades of the USSR Minstroy [Ministry of Construction]—72 percent, Minvostokstroy—57 percent, and USSR Minsel'stroy [Ministry of Rural Construction]

—56 percent.

The brigade contract makes it possible to seek out and boldly introduce internal reserves into production. And wherever the matter is approached with

initiative and creativity, success is invariably achieved. For example, the

brigade of I. D.' Ganchev from the Nikopol'stroy Trust of the UkSSR Mintyazhstroy [Ministry of Construction of Heavy Industry Enterprises] which is wellknown in the sector last year submitted for operation 18 residential houses

with total area of around 100,000 square meters. The construction time was

reduced by 13 days. The brigade's output per worker was over 95,000 rubles.

A savings of 47,000 rubles was achieved. Both the wages and the prizes are

higher in this collective than in the others. Here they are directly associated

with the end results of the work.

Nevertheless, the possibilities of the brigade contract in residential construction are still insufficiently utilized. It is much easier to introduce

the brigade contract for the construction of housing, children's pre-school

institutions and cultural—domestic facilities which as a rule take no more

than a year to build than it is to apply it at large industrial facilities.

Therefore economic .managers and professional union committees must give this

work sector primary consideration. It is necessary to create all the conditions

43
for highly productive and effective labor according to the method of brigade

cost accounting and to not permit the transfer of brigades from site to site,

particularly at the end of the year, as well as the disbanding of brigades.

The task consists of bringing the relative share of construction-installation

work performed in housing construction by the method of brigade cost accounting

to 80-85 percent by the end of the five-year period and of transferring house

building combines in general to a flow brigade order. The recently ratified

new position on open brigade cost accounting will facilitate this end.

The introduction of achievements in scientific-technical progress, the improvement of organization of building production and the application of

modern achievements in architecture and the rich legacy of folk architecture

have allowed, our urban builders to achieve significant success in comprehensive

building of new cities and microregions and in reconstruction of historic

centers. In the current year, a large group of urban builders has been

awarded the prize of the USSR Soviet of Ministers for their outstanding

projects and construction. Among these works are "Large-Panel Residential

Houses Made of Block-Sections of the Regional Series '111-121 Ch'" in the

Chuvash ASSR based on the example of construction in Cheboksary, "The Complex

of Structures for Water Supply to the Southwest, Southeast and Southern Rayons

of Moscow",. "The First Order of Building in the City of Kirishi, Leningrad

Oblast", "The Public-Residential Complex '305' in Murmansk", "The Vtoraya

Rechka [Second River] Residential Region in Vladivostok" and:others.

Undoubtedly, much has been accomplished, but there are also still significant

shortcomings in the organization of residential construction. The construction

ministries and departments are slow in implementing the transition of housing

construction to progressive series of houses. In the current five-year period,

approximately 96 percent of the houses are erected annual according to standard

projects. Of these only 53 percent are built according to new projects. In

a number of areas efforts are being made to build more houses of increased

story height according to individual projects, which increases the cost of

construction by 10-15 percent. Thus, for example, last year 25 percent of

the houses were built according to individual projects in Pavlodar, and 22

percent of the total number of houses in Kalinin. This percentage is also

high in construction in Sevastopol and a number of other cities.

We have the necessary capacities for realizing the program for residential

housing construction envisioned by the party. Presently in the country there

are around 500 enterprises engaged in industrial house building in operation,

with a total capacity of approximately 60 million square meters of overall

area of fully prefabricated houses per year. However, only 219 enterprises

are in operation within the system of house building combines. Here the

available capacity of large-panel house construction is utilized by only

76 percent. In a .number of organizations this indicator is significantly

lower. Thus,, the Large-Panel House Construction Plant of the Ryazan House

Building Combine under the USSR Minpromstroy [Ministry of Industrial Construction] is working to 38 percent capacity, the Dushanbinskiy House Building

Combine of the USSR Minstroy—to 55 percent. And there are many other such

examples. According to the data of the USSR Gosstroy [State Committee for

Construction Affairs], already in the current five-year period the increased

44
utilization of large-panel housing plants to 85-90 percent will make it

possible to place into operation additional fully prefabricated residential

houses with overall area of 7-8 million square meters per year. This problem

is fully soluble. The necessary aid to the contracting organizations must be

given by Minstroydormash [Ministry of Construction, Road and Municipal

Machine Building], which manufactures equipment and outfitting for the house

building combines.

We must say that to the present time we still have no clear technical policies

on "planning house building combines. There are no standard decisions for

the foremost technology, which has recommended itself so well in practice.

Labor expenditures and fuel and power consumption for the production of the

same products at different house building combines vary by 2-3 times. There

are tens of methods of product heat processing in plant production. The

situation with industrialization of construction on a mass scale in culturaldomestic buildings is extremely poor. Their degree of prefabrication over the

past years has undergone almost no growth and remains at a level of 20 percent.

A faster transition should be made to the construction of fully prefabricated

children's pre-school institutions, professional-technical schools and other

facilities of social and domestic function, with provision made for comprehensive flow construction of blocks and microregions.

As before, the inhibiting factor In the realization of comprehensive, programs

of residential housing construction is the unrhythmic character of the operational introduction of facilities. As we know,"the USSR Soviet of Ministers

as early as 1981 adopted a resolution for increasing the effectiveness of

capital investments allocated for housing construction. It was established

that beginning in 1982 no less than 40 percent of the annual program of

housing introduction must be planned for the first six month period. However,

this Order is not being implemented by numerous planning organs and economic

managers, which leads to rush work and to disruption in the plans for residential housing construction". It is no secret that in the current year around

half of the operational introduction program for most organizations building

housing falls in the fourth quarter, and strictly speaking—in December. Whereever it is possible,-the plans and graphs for housing introduction, should be

reviewed in order to maximally hasten their construction time and create the

necessary stock for rhythmic work in the fourth year of the five-year period.

It is also time to end the faulty practice of accepting houses for operation

with major items left unfinished and with inoperable systems of engineeringcommunications. Unfortunately, there are many such examples. In the Tyumenskaya Oblast in 1982, unfinished houses were accepted for operation with overall area of 70,000 square meters, four children's pre-school institutions for

1,200 pupils, and a surgical unit. In many of these, work had not been

completed on laying floors, hanging doors, finishing the rooms, installing

sanitary-technical facilities, and other operations left unfulfilled. In

Baku, 23 multi-story buildings were not occupied for two months due to unfinished work.

Construction defects in new houses in the Ts-14 microrayon in Tashkent were

not corrected for five years. Many decisions were made by various organs on

45
this question, but the position remained unchanged until most recently, when

an order was issued by the directive organs.

Strict order must be established in the existing system of accepting facilities

submitted for operation. The role and responsibility of the construction

organizations, professional union committees and operational organizations

must be increased. The single customer service must also find itself and

determine its place in this important state matter. It has been created in

only 125 large cities throughout the country, and does not operate effectively

everywhere at that.

In recent years, a tendency has been noted toward a certain improvement in the

quality of residential-civil construction. This has been facilitated by

stricter controls, the transition to comprehensive goal-oriented quality

checks with the participation of society and with examination of these results

at collegiums of construction glavks and republic ministries, as well as

professional union committee presidiums. The problem of quality is not only

an economic problem, but a social one as well. We can no longer put up with

the fact that new residents often experience disappointment and annoyance upon

receiving their apartments because of poorly performed work or defects.

Even though in many cities work quality has become the subject of particular

concern by builders as well as operators, there are still many complaints of

defects. Many state funds and personal savings of citizens are spent on

correcting defects, and material means are overexpended. Only 60 percent of

our houses are accepted with good or excellent ratings. Eleven thousand

people are constantly engaged on correcting defects in construction. Last

year over 8,500 inspections of work quality were performed in 1,224 cities and

1,575 rural rayons of the country. As a result, work was interrupted at a

number of facilities and financing was revoked at 162 construction sites.

Over 600,000 square meters of overall residential housing area were excluded

from reports on operational introduction due to defects and unfinished work.

This was primarily in Krasnoyarsk and Altay Krays, in Kemerovo 0blast, in

Latvia, Uzbekistan, Kazakhstan, the Ukraine, and a number of other places.

According to the resolutions of state architectural building control organs,

a number of engineering-technical workers at construction sites and house

building enterprises have been fined. Over 100 persons have been brought

to judicial responsibility for their disruption of plans, construction norms

and standards. And is it normal that for reasons of not knowing the standards

and regulations of work production, engineering-technical workers were dismissed from work or demoted according to the results of inspections by the

state architectural building control organs? This is evidence of the fact

that in a number of organizations, serious work is not being performed on

improving the level of training of workers and supervisory line personnel.

Improving the quality of housing construction is today becoming one of the

most acute problems. In connection with this, extensive work*is being performed

in the sector on introducing the experience of Moscow house builders working

under the motto "To High Quality Construction—a Working Guarantee!". This

patriotic initiative is directed at increasing responsibility for high work

46
quality by each labor collective at the country's construction sites. It

is also necessary to activate the movement of Moscow and Leningrad workers who

submit houses for exploitation with guarantee passports.

As we see, the organization of housing construction has considerable reserves.

In.order to rationally bring them to action and better utilize them, it is -•

necessary to improve planning and rationally combine centralized sectorial and

territorial programs. The experience of leading collectives shows that already today it is possible to everywhere set up flow-line construction and

to scientifically resolve prospective questions on urban construction. Longterm construction flows may facilitate the elimination of unnecessary overloads in construction and installation organizations at the end of the year

and the ordering of a system of equipment manufacture and delivery to facilities under construction. The faster the emerging problems are solved and the

shortcomings eliminated, the more significant will be the economic gain and

the more successful the implementation of the extensive program of housing

construction in the country as envisioned by the party.

COPYRIGHT: Stroyizdat, 1983 J

12322

CSO: 1821/26

47
CONSTRUCTION MACHINERY AND EQUIPMENT

MECHANIZATION TO INCREASE IN CONSTRUCTION INDUSTRY

Moscow MEKHANIZATSIYA STROITEL'STVA In Russian Noll, Nov 83 p 2-4

[Article by V. V. Semkovskiy and Yu. S. Vostrikov, USSR Gosstroy [State Committee for Construction Affairs]: "On a Comprehensive Program for Reducing

Manual Labor Expenditures in Construction"]

[Text] The June (1983) Plenum of the CPSU Central Committee defined the

general reduction of manual labor expenditures and the cardinal increase in

labor productivity as the key task in the sphere of economics.

According to the data of a one-time survey, in construction on 1 August 1982

the portion of workers performing manual labor comprised 61.2 percent, including 48.6 percent performing work by hand without any machines. In the

past 10 years the level of manual labor has dropped insignificantly. As

before, the most labor consumptive jobs remain masonry work (89.4 percent of

the workers working by hand without machines), joiner-carpentry work (75 percent), and plastering, painting and resurfacing work (71.3 percent). In this

period, the number of workers engaged in manual labor on the repair of machines

Increased by 11 percent.

The reduction of manual labor expenditures is a comprehensive and complex

task. Construction ministries and departments systematically provide for

measures directed at reducing the application of manual labor due to Improvements in project planning decisions, increased volumes of production,

application of progressive building materials and constructions, development

of fully prefabricated house building, transfer of work operations from the

construction site to plant conditions, creation of new machines and mechanized

tools, development of comprehensive mechanization and automation of construction and assembly work, and improvement of construction and labor organization.

This has been reflected in the five-year plan for economic and social development of the USSR for 1981-1985, and In the annual plans, as well as In the

plans, standards and other documents developed by the USSR Gosstroy in conjunction with interested ministries and departments.

For the 11th Five-Year Period, the USSR Gosstroy together with the ministries

and departments have developed and are realizing nine' important scientifictechnical programs and one target comprehensive program in the sphere of

construction, construction materials, and construction and road machine

48
building. The programs provide for the creation and mastery of new building

materials and building structures (reinforced concrete, metallic, wood, asbestos

cement, etc.), automated technologies for their production which would meet

the requirements of further industrialization of construction and ensure

economy of labor resources, development and Introduction of new methods for

organizing construction, comprehensively mechanized technologies for production of the most mass-produced types of construction-installation work

(earthwork, "concrete, installation, finishing work) and new highly productive

machines and tools ensuring a sharp increase in labor productivity.

The USSR Gosstroy has ratified a plan for the comprehensive mechanization and

automation of construction-Installation work for 1981-1985, and annual plans

are being developed and ratified. Realizing the tasks set in these plans

made it possible in 1982 to reduce the volumes of manual labor computed per

one million rubles of construction-installation work, as compared with 1980

for construction as a whole, for earthwork—by 15.2 percent, for concrete

work—14.2 percent, for plastering work—9.1 percent, for painting work—

7.6 percent, and for cargo handling operations—12 percent. The level of

mechanization for roofing work increased from 49.8 to 56.4 percent, and the

relative share of container and packet shipments from 23.7 to 28.4 percent.

The level of automation in preparing concrete mix and mortar also increased.

Based on an analysis of the state of mechanization in construction-installation

work, the USSR Gosstroy with participation of the Minstroydormash [Ministry

of Construction, Road and Municipal Machine Building] and the construction

ministries developed and ratified a system of machines for the comprehensive

mechanization of construction for 1981-1985. In accordance with this system,

the enterprises of Minstroydormash and other ministries have mastered the

production of mechanized instruments for installing partitions made of gypsumcardboard slabs, of mechanized perforators, safety pneumatic jackhammers,

concrete grinders and impact wrenches, and electrical instruments with electronic control. The production of plastering and painting stations, machines

for roofing work, and other building technology has been introduced.

Work is being done on improving project-estimate documentationrand standards

documents whose quality and technical level greatly determine the degree of

application of manual labor. Provision is being made for expanding the application of the brigade contract, introducing mandatory work production technology with application of standard sets and charts on labor processes, and

introducing work production plans everywhere.

Nevertheless, despite the measures being taken for industrialization and

mechanization of construction, the portion of manual labor, particularly in

finishing and post-installation work, at small dispersed facilities and certain

auxiliary operations is still great. The existing rate of edging out manual

labor, particularly in recent years, has been insufficient for its sharp reduction.

The positive experience of the RSFSR, Belorussian SSR, KazakhSSR Gosstroys

and others deserves attention. Based on predictions for the development of

the sector for 1981-1985, these organizations working together with the construction ministries and departments of the republics have developed and

49
ratified comprehensive programs for reducing the application of manual labor

(TsKPRT) in construction organizations for the 11th Five-Year Period. The

programs make it possible to concentrate resources on solving this important

problem, to successfully resolve intersectorial questions, and to overcome

departmental barriers. The tasks envisioned in the programs for development

and introduction of new engineering and progressive technology create the

necessary prerequisites for the significant reduction of heavy and lowproductivity manual labor. In working out the programs, the construction

organizations utilized various methodological directives, forms and indicators..

0n~20 July "1982, the USSR Gosplan [State Planning Committee], GKNT [State

Committee on Science and Technology], USSR Gosstroy, USSR Goskomtrud [State

Committee for Labor and Social Problems], and VTsSPS fAll-Union Central Soviet

of Professional.Unions] adopted a,resolution on the development of a target

comprehensive program for reducing the application of manual labor in sectors

of the USSR national economy for the period to the year 2000.

For purposes of ensuring a-singular methodological approach to the preparation

oftheprogram and .determining its. basic indicators "in all sectors of the

national economy, the USSR Goskomtrud and USSR Gosplan worked out and ratified a number of standard methodological documents.

Based on these standard methodological directives, the USSR Gosstroy, in

cooperation with the Central Committee of the Professional Union for Workers

in Construction and the Building Materials Industry, prepared and ratified

methodological directives, forms and indicators for performing an accounting

(passportization) of^manual.jobs -and for developing a comprehensive program

on reducine the application'of manual labor :in construction organizations.

Tn accordance with these methodological directives, the basis for compilation

of the program in the construction mintstr+es and denartments and the territorial probrams are the programs developed within the construction organizations (associations, trusts, house-building combines : and their equivalent

organizations) and at enterprises of the construction industry. Here,, special

permanently operating commissions are formed, headed by the managers of these

organizations and including, aside from the sector and section directors,

also professional workers, mechanics, standards workers, work brigade leaders,

production innovators (in administrations), directors of functional sections

and services, chief specialists (in the higher ranking organizations), as

well as representatives from party and social organizations.

The development of the target comprehensive program includes an analysis of

the mairaal labor expenditures in construction, a determination of the reasons

for its application, and a development of specific measures for eliminating

the processes and operations presently performed by hand.

To obtain data on the application of manual labor and to determine the initial .

level of its expenditure, the construction administrations and their equivalent

organizations perform total accounting (passportization) of the actual labor

expenditures for all the types of work and professions of workers in each

construction work brigade, unit or individual worker performed from 1 July

1982 through 30 June 1983. The number and professional make-up of workers

engaged in manual and heavy physical labor are determined in the course of

50
the reporting. Manual and heavy physical operations are clarified, as well

as the time expenditures.for their implementation. " Labor expenditures are

determined according to orders- and calculations, while the actual time worked

by"brigade (unit) workers Is determined by tables.

The documentation of labor expenditures for the annual time *nterval makes

: it possible to/consider the, specifics, of^ building production: the seasonjality.of work, -the^transitional character of the work site, the broad combination of construction worker professions, and other factors. The specialists

of OTiZ [Labor and Wage Section], PTO [Technical Production.Section], and

OGM [Chief Mechanic's Section] at construction organizations, NIS [ScientificResearch Sector], TsNIB [Central Normative-Research Bureau] and the "Orgtekhstroy" trusts (institutes) must be attracted to the solution of this

problem.

The data on accounting (passportization): of manual labor are the main source

of information in deveropihg measures for its reduction. Upon analysis of

the accounting data, the most numerous professions of"workers engaged in

manual and heavy physical labor are determined, as well as their number and

type and volume of work performed by these workers.

According to the results of-the analysis, construction administrations and

their equivalent organizations, in accordance with the basic directions for

technical progress, are developing measures, while associations, trusts, housebuilding combines and their equivalent organizations are formulating TsKPRT

on the basis of these measures. Here it is necessary to be oriented toward

the maximal application of internal reserves, which do not require significant

material and labor expenditures: improvement in the utilization of available

means of labor machanization and automation and introduction of rational

engineering and organizational decisions.

For manual.labor, whose elimination is hindered during the period of develop* •

ment of programs by organizations, proposals are submitted to the superior

organization on the implementation of scientific-research and experimentaldesign work and the development of project planning decisions, organizational

and economic questions.

In formulating the program, primary consideration is given to measures of a

national economic and general sectorial significance which are capable of

ensuring liberation from heavy physical and manual labor for the greatest

number of workers, primarily women, as well as to measures which may be implemented in a short time and without significant expenditures with greatest

economic effectiveness. Together they must ensure fulfillment of the established tasks for maximal reduction in the application of manual labor.

The development of TsKPRT is planned for implementation In-two stages. At

the first stage, indicators and measures of the preliminary TsKPRT project are

developed on the basis of total accounting, (passportization) of manual labor

and the results of scientific studies by five-year periods as a whole. At

the second stage, the scope of reduction in the application of manual labor ,

is clarified, as is the system of measures determined at the first stage

51
in coordination with the volumes of allocated resources and plan indicators

for economic and social development of the construction organization, ministry or department. At this stage the program indicators for the period

1986-1990 are developed by year.

The ratified TsKPRT will serve as supplements to the five-year plan for the

economic and social development of organizations, ministries and departments.

The development of the program in coordination with the plan for economic

and social development of construction organizations, ministries and departments makes it possible to resolve the task of reducing the application of

manual labor in a comprehensive manner: by maximal transfer of labor consumptive processes from, the construction site to building industry enterprises,

by increasing the degree of plant readiness of structures, by introducing

packet and containerized transport of construction loads, by ordering their

warehousing, and by increasing the level of engineering preparation of work

production. A significant reduction in the application of manual labor and

acceleration of the growth of labor productivity may be achieved by equipping building organizations with highly productive machines, means of small

mechanization, mechanized and hand tools, specialized auto transport, as

well as improving the application of technology due to increased shift application of its work and better utilization during the shift.

Construction is a highly mechanized sector of the national economy which has

at its disposal over 600,000 large construction machines and numerous other

technology. Increasing the effectiveness of utilizing this equipment is the

most important task at the present time.

Since construction organizations are being equipped in recent years with new

earth-digging technology, the possibility has arisen for significantly reducing the expenditures of manual labor in earthwork production. This end

is facilitated by the application of boring machines for pile installation used

foi-: - supports for enclosures, communications and electrical lines and by the

application of various equipment for trenchless laying of engineering communications under the road thoroughfare and along main automobile roads and

rail lines. Each hydraulic excavator with interchangeable equipment at grading

or clean-up work sites, each earth-digging, cutting and moring machine in

the excavation of frozen ground, makes it possible to free 25-30 earth diggers.

Construction organizations should not allow.work to be done by hand in filling

pits and trenches, in digging small excavations and trenches at places of

entry of engineering commuifications into buildings and structures, in loosening

frozen ground and rock, and in backfilling (except for work production defined

in the project plan).

In the last five-year period, the Minstroydormash enterprises manufactured

over 30,000 road construction machines with automated control (motor graders,

asphalt placers, scrapers, trench excavators, etc.). The experience of their

application in the construction organizations of the USSR Minvodkhoz [Ministry

of Land Reclamation and Water Resources], RSFSR Minavtodor [Ministry of Highways] and Latvian SSR Minavtodor shows that the application of means of auto52
mation cm all these machines significantly increases their productivity

while at the same time ensuring economy of construction materials and fuel,

improving the quality of work and facilitating the labor of machine operators.

However, there are often cases where automated machines are not used according

to their function, when the operational personnel are not trained in time,

and when their technical state is poorly controlled. Technical services must

be created at construction organizations for the adjustment, operation and

repair of automated machines. Also, training of personnel in the regulations

of work production with the application of these machines must be organized.

A significant reduction in labor expenditures may be achieved In preparing,

transporting and placing concrete mixture. Preparation of concrete mixture

must be done generally at centralized automated plants and installations.

The production of concrete mixing trucks and concrete haulers is being expanded and provisions are being made for mastering new standard dimensions

of these vehicles for delivering concrete. Builders have at their disposal

a considerable pool of concrete pumping trucks, whose application will make

it possible to significantly reduce the labor consumption of placing concrete

mixture. However, these vehicles are still insufficiently used.

Much has been done in recent years in developing the production of mechanized

tools and finishing machines. The production of IE-4713 hand-held electric

perforators has been mastered. Using these, it is possible to reduce the

labor consumption of making openings in concrete structures and brickwork,

cutting grooves, piercing metal, driving dowels, and performing operations by

1.5-2 times. Equipment is being manufactured for the installation of dry

gypsum plastering of increased quality—an electric drilling machine with

set of fittings, wood-screw driver with magnetic head and electronic regulation, as well as scissors for cutting profiled sheet metal.

The production of new highly effective electric impact wrenches for bolts

ranging in diameter from 18 to 30mm has been organized for the assembly and

packet tightening of threaded connections during the assembly of equipment

and metallic structures.

High pressure painting units are being manufactured in great quantities.

These ensure an increase in labor productivity of 2.5-3 times and up to a

30 percent savings in paint compounds. The S0-126 pneumatic force pump with

productivity of 2.5 m^/hr is being produced for making and transporting

thick mortar for the installation of floor eujhport walls. This pump ensures

mortar supply to a height of up to 40m. The production of plastering and

painting stations, plastering assemblies and other technology is being expanded .

For the purpose of improving the utilization of small mechanization means,

specialized administrations and MM [Ministry of Machine Building] sections

have been created and are successfully functioning in many construction

ministries and departments. They perform a number of special'jobs by their

own efforts, including: hydroinsulation, piercing with trenchless laying of

underground communications lines, drilling holes in reinforced concrete

53
structures using diamond cutting tools, etc. They organize instrumentissue points at construction, sites,.supply the sites of the necessary means

of mechanization, and ensure the work capacity of this technology. With the

creation of MM administrations at the construction organizations, which are

comprised of specialized MM sections, the application of small mechanization

means has significantly improved, expenditures of manual labor have been reduced, and labor productivity has Increased.

Increased labor productivity in roofing, plastering, and painting work has

been facilitated by the application of mandatory technology for their production with work crews being equipped with standard sets of instruments.

The compilation of a comprehensive program requires the determination of the

technically and economically expedient level of mechanization, the creation

of progressive standards, and the selection of optimal methods and'means of

mechanization for each type of work. The engineering-technical workers of

construction organizations, acientific-research and technological institutes,

aHds^Qrgtekhstroy" trusts and institutes must be attracted to the solution of

these problems.

For purposes of effective control over the implementation of the program, it

is necessary to provide for appropriate periodic accounting of labor expenditures according to types of construction-installation work.

The realization of the target comprehensive programs on reduction in the

application of manual labor by the construction organizations and enterprises

will make it possible to solve a number of socio-economic problems foreseen

by the decisions of the 26th CPSU Congress and subsequent Plenums of the CPSU

Central Committee.

COPYRIGHT: Stroyizdat, 1983

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54
BUILDING MATERIALS

MOSCOW BUILDING MATERIALS CHIEF DISCUSSES INDUSTRY

Moscow MOSKOVSKAYA PRAVDA in Russian 5 Oct 83 p 2

[Article by A. Osipov, director•of Glavmospromstroymaterialov [Moscow Industrial

Construction Materials Main-Administration]: "The Base of Construction: On the

25th Anniversary of the Order of Lenin Glavmospromstroymaterial of the MosgorispoUeom" ]

[Text] The Moscow construction materials industry has come far in this quarter

century. The previously uncoordinated totality of minor enterprises with their

morally and physically outdated technology has been transformed into a strong

material-technical base for construction.

Today, when one tries to understand the development of construction in Moscow

or visits construction sites which have essentially been turned into assembly

shops with an industrial work rhythm, one is again convinced how timely the

decision of the party and the government was in regard to transforming the

production of building materials and structures to an Industrial basis and

concentrating it under a single administration.

Today the Glavmospromstroymaterial enterprises turn out over 200 types of

modern materials and structures and supply them to all types of construction

in Moscow. This production ensures the annual introduction of over 3.5

million square meters of residential area, one million square meters of

production area, numerous schools and children's institutions, agricultural

facilities, unique and public buildings, and engineering structures.

Over half of the'fully prefabricated residential houses placed into use in

Moscow are erected entirely of materials and structures (including prefabricated reinforced concrete) manufactured by glavk [main administration]

enterprises. Over 55 percent of the total labor expenditures for the manufacture and construction of these houses are put in at our plants. Thus,

the industry is actively participating In the process of construction using

its human and material resources and fixed capital.

The "Stroyplastmass" Combine, the Kuchinskiy Ceramic Facing Materials Combine,

the Moscow Stone Processing Combine, the "Mosstroyplastmass" Production Association, the Building Materials Combine No 24, the Wood-Processing Combine

No 3, the Lenin Glass Plant and other enterprises are making a great contribution to the industrialization of Moscow construction. Today the glavk includes.

55
over 60 associations and enterprises, construction, scientific-research, designtechnological and project planning organizations employing over 80,000 people.

In the past years the production volume in the main administration has increased by 4.7 times with a 4.1-time growth in production capital. In this

period the labor productivity has increased 4.5 times. Ninety-seven percent

of the production growth was obtained due to the growth in labor productivity.

Over one-fourth of the production subject to certification is produced with

the Seal of Quality. In 25 years, one billion rubles in capital investments

have been spent on the development of industry, and 1,800,000,000 rubles profit

has been obtained. Thus, the capital expenditures invested in industrial

development have been repaid almost two-fold.

A remarkable guard of personnel workers, engineers and technicians has grown

up at bur enterprises, who serve as examples of high-productivity labor. The

names of P. S. Fabrichnov, bricklayer at the Kotel'skiy Plant, 6. F. Novikov,

V. A. Korovkina and A. I. Golubeva, compositors at the Dedovo Ceramic Plant,

V. P. Belozerov, lathe operator at the experimental mechanical plant, and

numerous others are well known for constantly overfulfilling their personal

plans.

Almost 3,200 workers, engineering-technical workers and personnel have been

awarded orders and medallions for their outstanding labor achievements. This

includes 68 receiving the Order of Lenin, 43 receiving the Order of the October

Revolution, and 700 receiving the Order of the Red Labor Banner. The high

honor of Hero of Socialist Labor has been bestowed on workers at the Kuchinskiy

Ceramic Facing Materials Combine A. V. Romanov and S. F. Fedotov, on brigade

leader of the Wood-Processing Combine No 3 and delegate to the 26th CPSU

Congress I, F. Isakov, on operator at the "Stroyplastmass" Combine M. A.

Bogolyubov, on operator at the Reinforced Concrete Products Plant No 7 D. G.

Fotin, and on^shop director at the Reinforced Concrete Products Plant No 5

M. S. Kostash. Fifty-eight workers became Laureates of the Lenin, State and

USSR Soviet of Ministers Prize, and 59 persons bear the honorable title of

"Honored Builder of the RSFSR".

Today the prefabricated reinforced concrete enterprises are manufacturing

sets of structures for a fourth generation of fully prefabricated residential

houses of the Unified Catalog type. Preparations are being made for mastering

17-story buildings of the Pp-70 series, which will subsequently fully replace

the present ones. Catalog products are being mastered for the construction

of industrial and technical structures. The wood-processing and nonmetalliferous industries are developing, as is the ceramics and binding materials industry. The synthetic finishing materials and heat and sound insulation materials industry has been created anew. Important measures have been implemented

in industry on improving working conditions, developing public dining and

trade enterprises, improving domestic services, and strengthening the material

base for public health and children's institutions.

The complex and crucial problems presently being solved by the sector's workers

are associated with bringing to life the plans of the 11th Five-Year Period.

In two years and nine months the production output has increased by 10.2

56
percent»which exceeds the pace envisioned by the five-year plan. One of

the main tasks of the five-year period is being sequentially resolved. This

is the stable development of industry on the basis of intensification of production, economy of all types of resources and improvement of production

quality.

In two years and nine monthsr over 48,000 tons of cement, 9,000 tons of metal,

30,000 cubic.meters of lumber materials,.: 24,000 tons ofconditional fuel,

300,000 gigacalories of thermal energy, and 70 million kilowatt-hours of

electrical power have been saved.

A firm course has been taken from the start of the five-year period for fully

ensuring the growth of production due to increased labor productivity. In

this period it has increased by 13.7 percent, which has made it possible to

fulfill the five-year assignment of its growth rate in 2.5 years *

A system of engineering acquisitions is being perfected in the main administration and methods of setting.up house building combines within Glavmosstroy

for the purpose of their application in our conditions are being studied.

Measures are being realized on improving the quality of production, particularly reinforced concrete, carpentry and hardware products.

The material interest of the workers and engineering-technical personnel in

the output of high quality products is intensifying and requirements for

executives and managers of all ranks are increasing.

Glavk is taking immediate measures to increase production and improve the

quality of non-metalliferous materials and clay-brick» The reconstruction arid

expansion of five major facilities in the nonanetalliferous industry are

being performed to replentish exhausted deposits and depleting capacities.

Twenty-nine million rubles in capital investments are directed toward this

end. Next year a new shop with capacity of 75 million pieces of brick per

year will be introduced at the Gol'tsinskiy Ceramic Plant. The reconstruction

of the Cheremushkinskiy, Ochakovskiy, Nikol'skiy, and Kotel'skiy Brick Plants

is being performed. In the next five-year period, the construction of a

plant with capacity of 150 million pieces of brick per year is being planned,

with subsequent development up to 300 million units per year.

Much attention is being given to the production of keramzit gravel—one of the

basic materials for making outside wäll panels. The introduction of new, improved technological processes has recently made it possible to increase its

output and to fully- provide for the needs of construction. The raw material

base for its production will be strengthened in the next few years. Measures

have been worked out for the development of other sectors and productions

which ensure the leading development of the building materials industry as

compared with the rate of construction-installation work being done in Moscow.

The workers of glavk enterprises see their task as significantly accelerating

the technical re-tooling and development of production in the second half of

the 11th Five-Year Period based on its intensification, and to strengthen

the responsibility and discipline of workers and increase the quality of the

manufactured product.

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CSO: 1821/24 57
BUILDING MATERIALS

RECYCLED INDUSTRIAL BY-PRODUCTS USED IN CONSTRUCTION

Moscow STROITEL'NAYA GAZETA in Russian 16 Nov 83 p 3

[Article by V. Penkin, chief of the Construction Supply Section, Khabarovsk

Main Territorial Administration, USSR Gosplan: "Over the Beaten Path: A

Second Life for Secondary Resources"]

[Text] An interesting exhibition which will be on permanent display opened

at the Khabarovsk House of Technology. On the display stands are bricks,

tolls of roofing felt, stacks of fiberglass, flasks filled with cement, and

concrete cubes. All these are samples of materials obtained at the kray's

building industry enterprises using secondary raw materials, the by-products

from production. Even the great D. I. Mendeleyev noted that the primary,

task of leading technology is to seek methods of producing the useful from

the useless. Practice has shown that the application of secondary resources

as raw materials for the manufacture of new products is on the average two

times cheaper than utilizing primary materials, and in some cases it is

also 15-20 times more effective.

For example, the inclusion of dumped ash from the city TETs-1 [Heat and Power

Station] into the charge when firing brick at the Khabarovsk Plant No 3 makes

it possible to save 10,000 tons of coal annualls. The use of this additive

has sharply reduced the defects which previously plagued builders and improved

the quality of production. An industry which before was chronically in debt

to the state has become profitable. The overall effect from the introduction

of new technology has comprised about half a million rubles. Meanwhile, the

expenditures for preparing production for the use of ash were only 17,000

rubles. They paid for themselves in the first two years of operation under

the new method.

The exhibit acquaints [the.viewer] with positive experience and promulgates

it.: Even more acutely, however, it exposes the unutilized reserves and tells

of the problems which are awaiting solution.

It seems that there is no particular need to agitate in favor of using ash in

brich production. The technology for it has been worked out and the effectiveness has been proven. However, for ten years since the time of the first

successful tests conducted at the building materials and plastic products

plant, this enterprise and another brick plant remain the only ones in the

kray to utilize these totally free ash additives. A dozen other related

58
enterprises prefers to work In the old manner.

The Central Construction Laboratory of Glavdal'stroy [Heavy Industry Construction in the Far East Main Administration] has performed experiments

on using ash additives in making concrete. In this case also the results

have been impressive: for each cubic meter of production it is possible

to save 60-90 kilograms of rubble and 20-50 kilograms of sand. Both the

concrete and the wall panels made from it turn, out to be of better quality

and take on better heat insulation properties. Thirty to thirty-five kilograms of cement may be saved on each cubic meter of bricklaying mortar by

adding the "wonder-working" ash to it.

However, these undoubted advantages seem to go unnoticed at Glavdal'stroy

and the "Khabarovskstroymaterialy" association. Almost a million tons of

ash goes to residue annually in thekräyls heat and power plants, and of this

truly rich resource builders take only a small portion for themselves—only

seven percent. There is no hope that the situation will change for the better

in the future. Not one construction industry enterprise is installing batchers

for the application of ash or setting up collectors and quarries a* heat and

power station dump sites. This most valuable material blows in the wind.

Is this good economic management?

Sulfite-yeast mash has proven to be a good concrete plasticizer. Also, SYM

additives make^it possible to significantly economize on cement. For example,

S42 tons of binding agent were saved in one year at the ZhBI-2 Plant due to

the addition of mash into the concrete mass. Computations show that the

application of sulfite-yeast mash would save 17,000 tons of cement on the

whole throughout Glavdal'stroy.

The advantage is obvious, and there is more than enough mash. After all, it

is the by-product of the wood-chemical industry. At one Amur timber-cutting

and wood-processing combine, 85,000 tons of it are produced annually. However, for this year the glavk [main administration] has only ordered 120 tons

of the plasticizer. For comparison we will say that the Blagoveshchenskiy

House-Building Combine alone in the neighboring Amur Oblast has requested

600 tons of mash. In Khabarovsk Kray it is not even used by the ZhBI-6

Plant, which is located practically across the street from the Amur HouseBuilding Combine. It is also no longer being used by the ZhBI [Reinforced

Concrete Products] Plant, which has become convinced by its own experience

of the advantages of the "free" plasticizer.

What, then, is the matter? Is the technology too labor consumptive? No.

It is simply the desire not to burden oneself with additional worries, to

look for something, to re-tool production, and to perfect the process. It

is much simpler to "beat out" additional funds for. basic raw materials than

to bother with some kind of by-product.

This standpoint is clearly evident in the example of the Teploozerskiy.Cement

Plant. Last year the cement producers requested 3,000 tons of mash. They

said that this would help increase production output and improve quality.

All-this is true, but when they received the assets at the plant, they began

59
reject them. They found out that it was necessary to develop the technology

and to experiment. Isn't it simpler to follow the beaten track? In any case,

it is calmer.

Such lack of initiative and condescending attitude toward secondary raw

materials have.also given rise to the following situation. In a kray which

has a well-developed lumber and wood-processing industry (and this means

also the presence of a large amount of wood by-products), the manufacture

of wood splint-slabs has not been perfected at building industry enterprises.

The entire amount [of these slabs] required for construction—up to 60,000

squate meters a year—is brought here to this taiga kray from the Transbaykal

region. Moreover, the Transbaykal producers cannot always meet all the orders,

and the Khabarovsk building sites experience a shortage of slabs. And yet

the glavk cannot begin on-site production of wood-splint slabs at its wood

processing combines.

Of course, it is simpler and more reliable to seek Gossnab [State Committee

for Material and Technical Supply] funds. This is an advantage to them, to

those who seek a quiet life. Today we are actively speaking of the formulation of economic thinking. This situation is a good cause for thought and

analysis.

Unfortunately, the practice of carefree economic management with free rein

and at state expense is not contradicted by the existing system of statistical

accountability on the economy of material resources. It turns out that it

is fully possible to "economize" on paper without burdening oneself by seeking

new reserves. Even the No 10-SN accounting form gives room for such creative

paperwork. Oriented not toward the ratified expenditure norms, but toward

the possibility of substituting materials even at the planning stage, it

permits remarkable paradoxes to arise. For example, the Zhelezobeton No 1

Trust last year overexpended 2,909 tons of cement, while according to the

report No 10-SN it seems that it "saved" 6,826 tons of it. Remarkable! Is

it worth burdening oneself with stricter measures of economy.and worry about

replacing basic materials with secondary raw materials when it is possible

to look good due to semantic equilibristics and to manipulations of accounting

graphs?

The accounting form No 14-SN which was introduced this year emjoys much less

good favor. It deals with the application of secondary raw materials at

enterprises. Many building organizations simply ignore it. Understandably,

they have nothing to say on this matter.

The documentation of industrial by-products which is not completed in time,

by 1 July as projected, throughout the country and here in the Far East in

particular, also hinders the operational introduction of secondary resources.

This is a very important task on "inventorizing" the potential raw material

for new production, and should be completed sooner. It will help turn many

materials which are useless today into useful and very much needed materials

at construction sites.

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CSO: 1821/25 END

60