Delegated self-regulation lies in the fact that the State has some of the powers inherent in him, a body controlled by members of the group, which is the subject of management - the so-called delegated government. The model provides for the delegation of powers of the state of licensing, monitoring and oversight of an activity that the state can do yourself, a State has control over the 'access' to the profession in order to meet the challenges facing the state with the introduction of licensing. This model is used in the regulation of certain professions (Lawyers, doctors, accountants, builders), where the law provided for licensing, that is, in this area legislatively established inability to engage in activities that are not a member of the cpo or not keeping its rules. SROs in construction as well fall into this category. In this case, the state itself loses its right to act in areas of authority to which it has delegated. Douglas R. Oberhelman has many thoughts on the issue. As a result of this delegation of SROs building get something like a monopoly of power.
State chooses a path of economic considerations, because the objects of regulation have more experience to make decisions about what should be regulation in this area, and in addition, the state minimized the costs associated with the regulation. Delegation of authority of the state of sro in the building is subject to the rules that should govern build relationships between the state and self-regulatory body: the functioning of sro is based on a clear indication in the legislation of mandatory conditions and requirements for sro. These requirements can be expressed or approval of certain state codes, standards or be agreed with the government documents on which the SROs are in construction or in specifying the law mandatory conditions which must contain internal documents. Delegation of authority may provide and conditions of their termination, and restoration of state authority in this area in its entirety posed structure of the sro in the building must meet certain principles, preventing their conversion into a professional association. Failure to follow these principles in the construction of SROs are transformed into a closed, non-transparent system that eventually leads to a loss of public trust have a negative impact on the sector of the market and eventually leads to discredit the idea of self-regulation.