On May 13, 2020, the Cabinet of Ministers of Ukraine announced a reform of the construction sector.
In the previous years, the construction industry lost billions annually due to corruption schemes of state architectural and construction control bodies. Developers had to pay huge amounts of money for permits to start construction, as well as for putting buildings into operation.
On the 1st step Cabinet of Ministers will liquidate the State Architectural and Construction Inspectorate and replace it with the three new central urban planning bodies.
"We bring the structure of the industry in line with the best developed countries in the world," said the Prime Minister of Ukraine Denis Shmygal.
According to the information provided by Cabinet of Ministers of Ukraine, the following bodies will be established:
-State urban service, which will perform registration functions in construction;
-State Agency for Technical Regulation, which will provide technical regulation of the industry, updating of state building codes and Eurocodes;
-State Inspectorate for Urban Development, which will perform the functions of supervision and control in the industry.
The reform of the construction industry is planned to be implemented not only through the liquidation of the State Architectural and Construction Inspectorate (GASI) and creating three new bodies in its place, but also through the introduction of a number of digital projects. So, in the future they will create a Unified State Electronic System and a new register of construction activities.
On October 17, 2019, Ukrainian parliament adopted a law that provides for the creation of the Unified State Electronic System in the field of construction. According to the law, the system is a public data portal, which will consist of a register of construction activities, a developer’s electronic cabinet and an electronic system portal.
Among the key functionality of the e-system: the ability to search for objects according to different criteria, a registry with data on all objects at all stages of construction, electronic document management and regular updating of information on changes in legislation in the industry.
In addition, the e-system should provide online interaction with resources such as the land cadastre, state register of rights to real estate, state register of court decisions, etc.
Thus, the portal will contain all the available information related to the construction industry. And with perfect execution, it will become the link between the state, the developer and the investor.
According to the Minister of Digital Transformation of Ukraine, the Cabinet of Ministers approved a plan for the introduction of an electronic system in the construction sector, and a new register of construction activities will begin work in June.
The Cabinet of Ministers also plans to cancel licensing of construction companies. Instead, the only requirement for construction work will be to hire certified professionals. Construction managers must also be certified to ensure quality construction and compliance with public construction standards.
It is expected that the process of issuing permits should become more transparent through the further introduction of electronic registration of CC2 and CC3 objects, filing documents and their initial verification through local Administrative Service Centers (according to checklists), clear “checklists” for permits, separation of control and permissive functions.
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NAZALI TAX & LEGAL |