The proposed law on construction, which is expected to be adopted by the Parliament soon, represents the codification of regulations related to spatial planning, construction and legalization of buildings. The proposed law is on the agenda of the parliamentary session that began on Friday and is expected to be debated this week. Since the adoption of the current law in October 2017, policies in the construction sector have not yielded the expected results. Given that construction is a key driver of the country’s economic development, it has been estimated that construction policies need to be significantly reformed and improved, leading to the decision to introduce a special law in this field, said the Ministry of Spatial Planning, Urbanism, and State Property (MDUP).
A special focus of the new law is on easing procedures for the construction of family residential buildings, where procedures have been simplified, and administrative requirements reduced.
Increased control
According to MDUP, the proposed act increases the system of quality control in construction, combats illegal building, and ensures the presence of inspectors in the field, i.e., in local governments.
“The problems arose because the solutions in the Law on Spatial Planning and Construction, regarding building, have proved inadequate in practice. This primarily concerns building where the investor’s application for construction, along with the required documentation, was the condition for construction, and the control mechanism through administrative and other supervision was ensured by the urban planning and construction inspection. Auditors, who were responsible for the quality of technical documentation and obtaining approvals, did not have adequate control in the system, and there were frequent malpractices affecting the quality and control of construction,” said MDUP officials.
The consequences of these problems, as highlighted, stem from the fact that the existing legal solution concentrated public authority in the construction sector on urban planning and construction inspection, and the existing solution in terms of meeting building conditions did not provide the expected contribution in combating illegal construction.
“The state’s control mechanism in this field has been almost negligible. Due to a reduced number of inspectors, who were controlling construction applications, they were unable to perform on-site inspections, which is actually their job. As a result, the territory of Montenegro has been most harmed by uncontrolled illegal construction and the manner of building, where many structures are being built contrary to the revised main project, with investors deviating from what was approved by the competent authority in terms of size or intended use,” MDUP officials emphasized.
According to them, the primary reason for redefining the policy is to improve the construction sector, mainly by introducing a building permit for all structures, as a condition for construction, issued by an administrative act and subject to administrative and judicial protection.
Decentralization
The issuance of building permits is decentralized by distributing responsibilities between the Ministry for State-Owned Objects of General Interest (for structures over 3,000 square meters) and local government bodies (for structures up to 3,000 square meters and local objects of general interest).
“A building permit is issued only for the main project for all structures. A mandatory technical inspection has been introduced, except for family residential buildings. It is also important to mention that this legal solution simplifies procedures for constructing family homes, which means that these structures are not subject to the revision of technical documentation, professional supervision, or technical inspection. Instead, a statement from the designer confirming that the project complies with the law, specific regulations, and professional standards will suffice,” said MDUP.
Employees in local governments will now have the opportunity to actively participate in the quality control of technical documentation and construction of buildings up to 3,000 square meters within their municipality.
“Additionally, when issuing building permits, special attention will be paid to the quality of the technical documentation. If it is not in accordance with the law and professional standards, measures will be taken to punish those responsible, increasing the accountability of all involved parties and improving the quality of technical documentation. A technical inspection will determine if the building has been constructed according to the revised main project or the issued building permit, which has not been the practice until now,” MDUP clarified, adding that this law also introduces penalties for officials who fail to comply with the law.
Responsibility
With this legal solution, control mechanisms in the building process are strengthened, and the responsibility of those involved in the preparation and revision of technical documentation, construction, and professional supervision is increased.
MDUP officials believe that this law encourages the establishment of small businesses, which are not required to have all four employees from different professions (architect, civil engineer, electrical engineer, mechanical engineer) to obtain a license for performing technical supervision or construction oversight.
“Additionally, this regulation offers security for investors, who will be able to proceed with their investments based on an administrative act or a building permit, which will allow them to secure financing from banks. This was not possible with the previous construction registration process. The construction and removal of temporary and auxiliary buildings will be regulated by the local government, with prior approval from the Ministry,” MDUP emphasized.
According to this law, investors must complete the construction of a building within five years of receiving the building permit.
“If construction is not completed within the specified period, the law provides for revenue for the budget, as investors will be required to pay an annual fee for each year beyond the deadline, the amount of which will be determined by the Government, as well as to continuously maintain the construction site until the occupancy permit is obtained,” concluded MDUP.
Introduction of electronic permits
By introducing the electronic building permit, a better business environment is created, increasing interaction between the three main societal stakeholders: government bodies (both state and local), individuals, and legal entities.
“The key objectives of the e-permit are: transparency, reducing the potential for subjective influence on the process, saving time, increasing productivity and efficiency, and reducing public expenditure—paperless offices,” said MDUP.
