March, 2017

In February 2017, Law of Ukraine no. 1817-VIII “On Amendments to Certain Legislative Acts of Ukraine Concerning Urban Development Activities” was published (hereinafter referred to as “the Law”). The main changes introduced in the Law are that “complexity class of construction projects” (I, II, III, IV, V classes) was replaced with “consequence (liability) class for construction objects”, changes in regards to construction permits, and also increase legal liability for legislative violations in the field of construction. These changes will take effect on June 10, 2017. As stated in the explanatory note to the draft law of this Law, the reason for making such changes is “to bring conciliation and reconciliation procedures in construction in line with the best European practices”. This means the need to harmonize the Ukrainian legislation in the field of construction in accordance with Regulation (EC) 305/2011 of the European Parliament and the Council on the Establishment of Harmonized Conditions for Distribution on the Construction Products Market and the Withdrawal of Directive 89/106 / EEC. In this article, we consider the main changes in more detail:

The most significant changes were made to the Law of Ukraine “On Regulating Urban Development”:

  • Instead of a construction complexity class, the concept “Consequence (liability) class for buildings and structures” was introduced. All objects are divided into three classes of consequences: 1) minor consequences is CC1; 2) mid-level consequences is CC2; and 3) significant consequences is CC3. The consequence class is determined in accordance with building regulations and standards. At present, such regulations and standards are GOS B.1.2-14-2009 “General principles of ensuring the reliability and constructive safety of buildings, structures, structures and foundations” and DSTU-B B.1.2-16: 2013 “Determining the consequence (liability) class and the complexity of construction projects”. In accordance with these regulations, the I and II complexity classes will correspond to the CC1 consequence class; the III and IV complexity class correspond to the CC2 consequence class; and the V complexity class correspond to the CC3 consequence class. As well, the project organization itself (in coordination with the customer) will have the right to attribute the project to this or that consequence class.
  • An exhaustive list of documents has been added and submitted to the client for the purposes of constructing urban planning conditions and restrictions, as well as a list of their contents and conditions for cancellation. It should be noted that urban planning conditions and restrictions can be abolished at the initiative of the chief inspector of the construction authority in the case that they do not correspond with urban planning legislation. In this case, the government officials issuing such urban planning conditions and restrictions shall be the ones held liable.
  • Changes were made to the list of construction projects that are subject to compulsory examination. Thus, in accordance with the changes, the construction projects that are not subject to mandatory inspection are related to objects with minor consequences (CC1), corresponding to the I and II complexity classes still in effect. Thus, after the changes take effect, construction projects of the third complexity class will be subject to compulsory inspection.
  • Also, for construction projects of the third complexity class (according to the current version), it will already be necessary to obtain a permit for construction works, in accordance with the innovations. The declarative commissioning of facilities is also canceled for this class. The notification procedure for the commencement of construction work and the commissioning of facilities, by filing a declaration, is provided only for facilities with minor consequences (CC1) (I and II complexity classes of the current order).
  • The legislator significantly expanded the powers of the state architectural and construction control body. Among other things, for example, permission to perform construction work can be reversed in the event of the systematic (two or more consecutive times) obstruction of an inspection!
  • Simultaneously with authority, there are broad grounds for conducting an unscheduled inspection of the construction site, for example, simply on the basis of an application submitted by any individual.

In accordance with the amendments to the Law of Ukraine “On liability for violations in the field of urban development” and the Code of Ukraine “On Administrative Offenses”, penalties for such violations have increased significantly. Thus, for example, liability for many types of “construction” offenses has doubled! Penalties are calculated based on the size of the subsistence minimum.

Summing up, we conclude that the declared purpose of introducing changes in order to harmonize Ukrainian legislation with the best practices of the European Union, except for “harmonization” itself, has led to significantly strengthening the powers of the bodies of architectural and construction control. While, of course, it is unclear how the aforementioned innovations will be implemented in practice or how they will affect the construction sector, now there are concerns about the procedure for exercising the authority to conduct inspections and cancelling permits previously issued in the construction sector.

Author: Olexandr Larchenkov

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2017-07-07T08:50:40+00:00 03.03.17|Legal practice|