CONSTRUCTION REFORM IN ACTION

The construction reform began six months ago and included a number of novelties.

Now we can analyze the pace of its implementation and the first available results. Please read below what has been already done and which steps are expected in creating a transparent construction industry.

NEW REGISTER

 One of the stages of the construction reform is the introduction of a new register – the Unified Public Online System in the Field of Construction ("Online System").

On July 1, 2020 the Cabinet of Ministers of Ukraine approved Resolution No. 559 On the Implementation of a Pilot Project for the Introduction of the First Stage of the Unified Public Online System in the Field of Construction.

According to this document, the Online system includes:

1) Register of construction activities

Users of the Register of Construction Activities (hereinafter – the “Register”) can receive town-planning conditions and restrictions, a building passport, a report on the results of the examination of the project documentation (including the appendix to it), a construction permit, a certificate or a notice of refusal to provide it, as well as change them etc.

At the stage of entering information about each construction into the Register, such construction is assigned an individual number which remains during the whole period of its existence.

In addition, the Register shall include information on court decisions, bans on the construction site, as well as project documentation for construction, photos of the current stage of construction.

2) Online cabinet

The Online cabinet is designed to submit and receive documents online by the users.

Users of the Online cabinet are: customers; licensees; expert organizations, authorized bodies of urban planning and architecture; bodies of state architectural and construction control and supervision; responsible contractors of certain types of works (services), authorized bodies for protection of cultural heritage, etc.

3) Online System Portal

The Online System Portal provides:

- access for users to the Online cabinet;

- displays the actual status of consideration of applications or submitted documents;

- opens access to information and documents of the Register;

- automated online consulting in real time regarding administrative services in the field of construction;

- access for any individuals and legal entities to public information resources (services) of the Electronic System.

An access to the Online systems is free of charge. The Online System site address is www.e-construction.gov.ua.

The Online system will work in a test mode until November 30, 2020 thereafter the normal operation is to be commenced.

CONSTRUCTION PROJECT NOVELTIES

On August 26, 2020 the Cabinet of Ministers of Ukraine in its Resolution No.752 amended the Approval Procedure for Construction Projects (hereinafter – the “Procedure”), in particular, regarding:

- Expert organizations

The expert organizations that examine construction project documentation shall be included into the list of admitted organizations published by the Ministry of Regional Development. The Ministry is authorized to enter them in the Register.

In the expert organization lost its admission, the information about such organization shall be excluded by the Ministry of Regional Development from the Register.

An expert organization must submit their expert reports in electronic form to the Register.

- Procedure for examination

The examination of the project is carried out under the agreements concluded between the employer and the expert organization. Such agreements may be concluded online through the Online cabinet.

The definitions of "positive" and "negative" expert reports are introduced. Accordingly, only a positive expert report is the basis for approval of construction projects.

If the environmental impact assessment report has been developed, the materials (section) of the environmental impact assessment in the project documentation are developed only regarding measures not included in the environmental impact assessment report.

- Project approval

Construction plans may be drafted online and further approved by a qualified electronic signature.

Construction projects implemented by the transmission system operator or the gas transmission system operator with the involvement of their own funds, budget funds, as well as loans provided under state guarantees, regardless of their cost, are approved by such operators.

- Additional project examinations

If software or computer equipment for creating information, telecommunication and information or a telecommunication system will be used for managing the facilities, the manager (recipient) of budget funds adds the results of the examination carried out in accordance with the Law of Ukraine On the National Informatization Program to the project documentation of these facilities.

Prior to approval of road construction projects that are audited in accordance with the Law of Ukraine № 200-IX On Amendments to Certain Laws of Ukraine on Road Safety Management, a report on road safety audit shall be attached to the project documentation for such facilities.

Construction projects implemented at the expense of state capital investments or loans attracted by the state or under the state guarantees, developed on the basis of the approved or selected investment projects which substantiate the feasibility of such construction, are subject to examination.

Should you have any questions with respect to above or require any additional information, please do not hesitate to contact Mr. Vladyslav Kysil (v.kysil@kpdconsulting.com.ua), Mr. Mykhailo Semka (m.semka@kpdconsulting.com.ua) or Ms. Anastasiia Polishchuk (a.polishchuk @kpdconsulting.com.ua). We will be pleased to assist You. Information contained in this overview is not intended to provide legal advice and should not be relied on or treated as a substitute for specific advice concerning individual situations.