Chamber: Work on the Building Act should continue

Prague – To revive construction after the current measures against the spread of the coronavirus are lifted, it is essential that the government does not interrupt the work on approving the new building law. Moreover, it is possible to prepare it using insights from the current crisis. Investors should primarily utilize joint territorial and building proceedings to expedite approvals. In an open letter to Prime Minister Andrej Babiš (ANO), which ČTK has at its disposal, Pavel Křeček, the chairman of the Czech Chamber of Authorized Engineers and Technicians (ČKAIT), writes this.

The Chamber further recommends that all entities involved in the approval of buildings adhere to the deadlines set by laws. This applies to building authorities, concerned bodies, and participants in the proceedings. According to Křeček, the parameters for determining exceptionally low bidding prices should be established in tender processes.

"Public investments will also be important. Accelerating the construction of transport infrastructure in line with applicable laws is crucial. If the government has an investment plan, we can discuss priorities based on that. It should also support other public investments, for example in the technical infrastructure of municipalities, to bridge the anticipated shortfall in the private sector," Křeček stated.

He also sees the establishment of conditions for the operation of foreign workers as essential, for example, by presenting a certificate of health safety from their home country or by ensuring accommodation is provided only in specific facilities.

"To support investment, we propose the possibility of accelerated depreciation for investments started during this crisis period. Additionally, other incentive tools in the tax area should be introduced to accelerate the launch of construction. State contracts will definitely be the most important, where the issue of preparedness is a problem," Křeček added.

The new building law aims to significantly simplify and accelerate construction proceedings. It is currently in the commenting phase. Initially scheduled for the end of January, this has been postponed to the end of March. The Ministry for Regional Development (MMR) has asked Babiš to extend it to the end of April due to the current measures. According to MMR, three-quarters of the comments have currently been addressed. As stated by the Minister for Regional Development Klára Dostálová (for ANO), it is necessary to fine-tune the agreement with large cities, which wanted to take into account specifics, especially regarding spatial planning documentation and deviations in building regulations.

The regulation has many critics. Among the most common complaints are that it favors developers and does not protect public interests. According to some opponents, it is even unconstitutional.

Dostálová said last week that the planned schedule for the approval of the law is still valid. However, given the current situation, it cannot be ruled out that the deadlines will change. The law should come into effect at the beginning of next year, gradually taking effect until mid-2023.