Abstract: one of the tasks in the field of economic development is to reduce the corruption capacity of the construction sector. Corruption significantly harms the state and the economy, negatively affecting the construction sector and housing and communal services. Corruption factors lead to an increase in the cost of investment and construction projects and the timing of their implementation. The most destructive is corruption in construction in Russia at the level of providing various types of public services and applying current legislation. The article examines the main manifestations of corruption in the construction sector in modern conditions of economic development, as well as shows the manifestations of corruption in various types of public services and current legislation in the construction sector. The analysis of the impact of corruption in construction to the implementation of investment-construction projects, authors developed the mechanism of state regulation reduce corruption capacity in construction on the basis of the systematization of methods of direct and indirect state regulation reduce corruption capacity of public services, depending on the stages of realisation of investment construction projects. Systematic, improved and supplemented methods of direct and indirect state regulation of the process of reducing the corruption capacity of all types of public services and the current legislation of the Russian Federation in the construction sector are proposed to be considered at various stages of implementation of investment and construction projects, in which certain methods demonstrate the highest effect. For the primary stages of the life cycle, the methods of state regulation of reducing the corruption capacity in the framework of solving individual tasks are applied. The authors also suggest ways to modernize the methods of direct and indirect state regulation in construction to reduce corruption.
Keywords: direct state regulation, indirect state regulation, public services, corruption, investment and construction sphere