STATE REGULATION OF THE CONSTRUCTION INDUSTRY OF UKRAINE TO ENSURE A SUSTAINABLE DEVELOPMENT MODEL

Abstract

This article is devoted to a comprehensive scientific investigation of the theoretical, methodological, and practical foundations of state regulation in the construction industry of Ukraine, specifically focusing on the imperative transition towards a sustainable development model. The construction sector is critically recognized as a system-forming pillar of the national economy that significantly determines macroeconomic dynamics, including gross domestic product and employment rates, while simultaneously exerting a profound impact on environmental quality, life safety, and overall social welfare. In the context of Ukraine, this issue acquires exceptional relevance and urgency due to the unprecedented scale of post-war recovery and infrastructural reconstruction required under martial law and beyond. The research meticulously analyzes the existing multi-level institutional and legal architecture of the regulatory framework, categorizing the current regulatory instruments into five distinct functional groups: administrative and legal (command-and-control), economic and financial, informational and certification, spatial planning, and procurement-contractual instruments. A critical diagnosis of the current state regulation practices reveals a complex of systemic dysfunctions. These include the fragmentation and internal inconsistency of the normative-legal framework, institutional instability and frequent reorganizations of state control bodies, the persistent dominance of short-term capital cost criteria over life-cycle costing approaches, the critical weakness of the ecological component in technical standardization, and a severe deficit of professional capacity at the local self-government level regarding spatial planning. Taking into full account Ukraine’s strategic obligations in the process of European integration and the mandatory approximation of national legislation to the acquis communautaire of the European Union, the article scientifically substantiates priority directions for the profound transformation of the regulatory model. The proposed comprehensive set of measures includes the codification of urban planning legislation, a paradigm shift from prescriptive requirements to performance-based regulation, the gradual introduction of ecological and carbon footprint standardization for buildings, and the fundamental reform of public procurement systems to prioritize green criteria. Furthermore, the study emphasizes the necessity of developing a circular economy model for managing construction and demolition waste, accelerating digital transformation through the Unified State Electronic System in Construction, and establishing a robust financial architecture for sustainable building practices.