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Unified State Electronic System in the Construction Sector

On November 14, President of Ukraine Volodymyr Zelensky signed Law No. 1081 “On Amending Certain Legislative Acts Regarding Improving the Procedure for the Provision of Administrative Services in the Construction Sector and Creating a Unified State Electronic System in the Construction Sector” dated October 17, 2019.

The law regulates the implementation of the electronic cabinet of the developer, i.e., the implementation of all licensing procedures in the construction in electronic format. In particular, the following is provided for:

  • the creation of a unified state electronic system in the field of construction as part of the urban planning cadastre;

  • the reduction of the list of documents for obtaining administrative services in construction;

  • the introduction of the “single window” principle for interaction between state electron registries;

  • opening access to information through the portal of the electronic system;

  • imposing liability of officials for unreasonably delaying the provision of administrative services (or if they refuse to provide them at all).

As part of the urban development cadastre there will be created a Unified State Electronic System in the Construction Sector. This system should ensure the submission of documents for receiving all administrative services in the construction sector in electronic form 24/7.

There will be reduced the list of documents submitted for receiving administrative services in the construction sector and there will be introduced the electronic interaction on the basis of the “single window” principle.

It will be possible to pay administrative services and fines in the construction sector online.

The construction objects will be assigned identifiers that will remain unchanged during the life cycle of the object.

There will be introduced a unified procedure for assigning and changing addresses of real estate objects.

Also, amendments were made to the Law “On Advertising”, regarding the advertising of construction objects.

Advertising housing projects in order to raise funds for the construction of such objects is permitted only if the developer has:

  • the right of ownership or use of the land on which the facility is being built;

  • the right to perform construction work at a specific object;

  • the licenses for carrying out economic activities (during the construction of objects with medium (CC2) and significant (CC3) consequences);

  • if the developer attracts funds of individuals and legal entities (including into fund management) for the construction of such objects in accordance with the third part of Article 4 of the Law on Investment Activities. I. e., exclusively through construction financing funds, real estate funds, joint investment institutions, as well as through the issuance of targeted bonds of enterprises, the fulfillment of obligations for which is carried out by transferring the object (part of the object) of housing construction.

Such advertising should contain the details of documents and the identifier of the construction object in the Unified State Electronic System in the Construction Sector (for objects that have received the right to carry out construction work after the introduction of the Unified State Electronic System in the Construction Sector).

From 01.06.2020, the State Architectural and Construction Control authorities will lose the right to do the following on their own:

  • to abolish town-planning conditions and restrictions, as well as to issue binding orders to amend the town-planning conditions and restrictions;

  • to terminate (cancel) the right to start construction work, acquired on the basis of a notice;

  • to terminate (cancel) the right to start preparatory work, acquired on the basis of a notice;

  • to annul (cancel) the documents certifying the acceptance of the objects with completed construction.

The right to start construction work, acquired on the basis of a filed message, may be terminated by the relevant state architectural and construction control body in the event of the following:

1) filing by the customer an application for termination of the right acquired on the basis of a notice of the commencement of construction work;

2) obtaining information on the liquidation of the legal entity, which is the customer;

3) based on a court decision that has entered into legal force.

A permit for construction work may be canceled by the state architectural and construction control authority in the event of the following:

1) filing by the customer an application for the cancellation of a permit for construction work;

2) the availability of information on the liquidation of the legal entity, which is the customer;

3) based on a court decision that has entered into force, on the cancellation of town-planning conditions and restrictions and/or the termination of the right to perform construction work.

From 01.06.2020. The state architectural and construction control will not have the right to deprive a person of the right to perform construction work, acquired on the basis of a notice in the event of:

– establishing during the inspection the violations of the requirements of urban planning documentation, urban planning conditions and restrictions, non-compliance of the construction object to the project documentation for the construction of such an object with the requirements of building codes, standards and rules, the violations of urban planning legislation in case of failure to comply with the requirements of officials of state architectural and construction control bodies.

Also, the state architectural and construction control will not have the right to cancel a building permit in the following cases:

  • establishing during the inspection the violations of the requirements of urban planning documentation, urban planning conditions and restrictions, non-compliance of the construction object to the project documentation for the construction of such an object with the requirements of building codes, standards and rules, the violations of urban planning legislation in case of failure to comply with the requirements of officials of state architectural and construction control bodies;

  • the cancellation of urban conditions and restrictions;

  • a systematic (two or more times in a row) hindering the inspection of officials of the state architectural and construction control body.

Changes to town-planning conditions and restrictions may be made by the body that provided them, at the request of the customer or by court order.

The cancellation of town-planning conditions and restrictions is carried out:

  • at the request of the customer;

  • by the court’s decision.

After the implementation of the proposed innovations, a direct communication between the developer and the official will be minimized, which will lead to a more transparent activity of the state architectural and construction control.

The law enters into force on December 1, 2019, and the Regulation on the Introduction of an Electronic Cabinet enters into force on January 1, 2020.

The Unified Electronic System in the Construction Sector will be introduced in stages – from 01.12.2020 to 01.12.2022.