In less than five months, a new set of construction regulations will replace the current Construction Act of 1976 in the Slovak Republic.
Ján Falath, Managing Partner
In this article, Falath & Partners, an esteemed law firm, highlights three pivotal changes that will significantly impact anyone considering construction projects in Slovakia after April 1, 2024.
REGULATED CONSTRUCTION: NO MORE FREE TRADE LICENSES
Under the current legal framework, construction activities are classified as free trade licenses and require no specific educational or expertise-related conditions for business entities. Quality assurance is primarily dependent on the site manager and construction supervision personnel, who must possess the necessary qualifications for their roles.
The impending change in construction legislation will transform construction into a regulated activity. Businesses will now need to register a “responsible representative” with the required certification and substantial professional education in the field of construction. If their education falls short of an engineering degree, the representative must also demonstrate significant practical experience.
Vladimír Sedliak, Real Estate Specialist
This change may pose challenges for smaller construction companies accustomed to using ad hoc individuals for specific projects. Site managers, construction supervisors, or individuals with similar education may seem like the ideal candidates for this “responsible representative” role. Yet, these professionals often prefer a more flexible approach to choosing their contractors. Because the new regulations necessitate an official declaration of the responsible representative by construction company owners, said representative would be officially tied to one specific company.
A two-year transitional period is provided for entrepreneurs who obtained a free trade license for construction before April 1, 2024, allowing them to continue based on their existing license until March 31, 2026. Beyond this period, there is an expected demand surge for qualified “responsible representatives.”
STRENGTHENED STATE CONSTRUCTION SUPERVISION
The new construction legislation also strengthens the competencies of state construction supervision. The goal is for state construction supervision to effectively inspect construction projects during their execution. Provisions are particularly clarified to authorize state construction supervision to take samples to conduct quality tests or to issue expert opinions in case of the suspected use of inappropriate construction materials or improper installation of construction materials. Furthermore, the construction authority may order the owner of the construction to provide a structural assessment of load-bearing structures if there is suspicion of their instability or visible wear and tear.
Additionally, the performance of duties imposed by the construction authorities is streamlined. If a responsible party (e.g., contractor or owner of the building) fails to fulfill their obligations, the construction authority can assign those duties to other business entities. The costs associated with carrying out these obligations will then be recovered from the party that failed to fulfill them. In practice, there has often been a problem with enforcing decisions made by a construction authority that impose duties on the builder. To facilitate this process, the new legal framework introduces elements to improve the enforceability of obligations imposed by construction authorities.
Individuals performing construction supervision can impose a fine to gain access to the construction site, to access project documentation and documents regarding the suitability of construction materials, qualifications of individuals performing construction work, and construction supervision. In addition to the order fine, they can withhold documents authorizing individuals to perform construction supervision and construction work to prevent further unauthorized activities.
Furthermore, the State Building Inspection is abolished, and its competencies are transferred to construction authorities. This move is generally perceived positively since there have often been uncertainties regarding whether the State Building Inspection or the construction authority should be responsible for inspections. This has led to situations in which both entities wanted to act or, in the worst cases, neither acted.
THE INABILITY TO LEGALIZE ILLEGAL BUILDINGS
Undoubtedly, one of the most significant changes is the elimination of post-construction permits, which previously allowed builders to construct buildings without or in violation of their construction permits and apply for a post-construction permit later. This approach was often more advantageous for builders than going through the entire process of applying for and acquiring a permit before construction.
Under the new legislation, such a procedure will no longer be possible. The new legislation also strengthens the tools to enforce orders for the removal of unauthorized constructions effectively. In addition to fines, the owner of the building may be required to provide a security deposit to cover the costs of removing the building in case the owner does not voluntarily remove it and the construction authority orders another authorized entity to do so. Another tool to ensure compliance with obligations and prevent the construction of illegal buildings is providing relevant authorities with the ability to disconnect the building from both water and electricity supplies.
CONCLUSION
The new legislation aims to expedite and streamline construction processes, primarily through the digitalization of the entire process of obtaining a construction permit and the consolidation of multi-stage construction proceedings into a single integrated process in which all relevant parties can participate. Another change is the increased responsibility of other individuals involved in construction, such as site managers and construction supervisors, as the current legal framework primarily targets building owners.
This article has been brought to you by Falath & Partners.
