Faster approval for construction projects

The government has improved procedures for timely approval of construction projects and their expert review by amending "Procedure for approval of construction projects and their expert review" (Resolution of the Cabinet of Ministers of Ukraine № 560 dated 11.05.2011), the Information-analytical Bulletin of the Cabinet of Ministers of Ukraine informs.

The measures gives construction clients using budget or local community funds (central and local executive authorities) a capability to review individual sections of design documents, instead of the entire design. Experts say the measure should reduce the cost of review and construction, as well as to accelerate schedule of preparation and review of construction documents.

Minister of Regional Development, Construction and Housing and Communal Services of Ukraine Gennady Temnik said the current "Procedure for approval of construction projects and their review" does not include a stage-by-stage approval of the Cabinet of Ministers for designs of a total estimated cost over 100 million UAH. The updates introduced onn Oct. 17 give the government the right to approve construction project by stages that should be identified at the preliminary design stages (feasibility study, technical and economic assessment, preliminary design).

Experts say this will allow for phased implementation of construction projects and use of funds, which is especially important for large-scale and long-term projects.

The changes do not rule out a compulsory review of design documents for entire construction projects. They enable the client to get a confirmation of correctness of the design solutions in a single section.

Changes to the "Procedure for approval of construction projects and their review" will help use in construction a high-quality design documents that are compliant with building codes and regulations and make operation of facilities that have been built safe for public.

Local authorities will also be able to approve construction projects for a total estimated cost of 30 million UAH. The executive bodies of villages, towns and city councils will be authorized to approve construction projects for a total estimated cost of 30 million UAH using the funds of public enterprises, institutions and organizations.

Experts note that construction industry is one of the leaders of the administrative reform in Ukraine. Over the past two years, the number of licensing procedures in construction has been reduced by 6 times, the approval review delays have also been cut. Today, the design package for most common types of construction may get approved in 5 steps that take about 20 days. Previously, to obtain construction permits one had to undergo 32 procedures in a complicated procedure that lasted almost 12 months.

The government intends to increase the development rate of the industry through simplification of licensing procedures for construction, while raising requirements for its quality and safety. Government experts say Ukraine can achieve these goals and meet the high demand for housing by making good quality local building materials available and using the latest technology and experienced builders.