National Building Policy in Lithuania. Presentation by State Territorial Planning and Construction Inspectorate under the Ministry of Environment

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1 National Building Policy in Lithuania Presentation by State Territorial Planning and Construction Inspectorate under the Ministry of Environment

2 ACHCIEVEMENTS Economy Rankings Competitiveness Rankings

3 STATISTICS Foreign direct investment flows Construction industry adds for about 7.5 percent of value to Lithuania GDP; 3% 3% 9% 13% 25% financial and insurance activities manufacturing real estate operations wholesale and retail trade information and communication About 6763 construction companies operates in Lithuania; The construction sector employs more than 5 percent of the total number of employees in the Lithuanian economy. construction 12% 21% logistics 14% other

4 Changes in legal framework A NEW VERSION OF THE LAW ON CONSTRUCTION* REDUCTION OF REGULATORY BURDEN ON BUSINESSES NEW REQUIREMENTS ENSURING QUALITY OF THE CONSTRUCTION WORKS AND THIRD PARTIES GUARANTEES The Law on Construction establishes all essential requirements for construction works which are being built, reconstructed and repaired within the territory of the Republic of Lithuania, and inter alia the minimum requirements for energy performance of buildings. The Lithuanian Law on Construction was first published on March 3, 1996 by the Parliament of the Republic of Lithuania (Seimas) * will enter into force on 1 January 2017

5 Application checking 3 days SHORTER TERMS Issuing building permit now Announsing institutions responsible for project checking 3 days Project checking 35 days Decision to issue a building permit 3 days Issuing building permit after 1 January 2017 Application checking 3 days Announsing institutions responsible for project checking 2 days Project checking 20 days Decision to issue a building permit 3 days Construction works of exceptional significance means construction works in which potentially dangerous equipment is situated or potentially dangerous works are performed; a building used for public purposes in which more than 100 people are present at a time; buildings of historical importance. In Lithuania construction works of exceptional significance may be constructed, reconstructed, only upon obtaining a permit from the municipality, in some cases from inspectorate.

6 Other improvements in the ease of dealing with construction permits - The number of institutions involved in issuing building permits reduced to 10; Presently, in most cases approval for designs must be received from 17 separate institutions before the issuing building permit. - Voluntary special architectural requirements for construction works; Presently, architectural requiremensts are mandatory: - for all overground construction works and those underground (underwater) construction works which are intended for living or working of individuals; - if requirements are not set out or specified comprehensively in the physical planning documents. - Lower-risk constructions exempted from requirements for final inspection by State Territorial Planning and Construction Inspectorate.

7 Digitized processes 16 e-services have been introduced that are provided in a portal based on one-window principle Place your screenshot here e-completion docs

8 New requirements for quality assurance The inspectorate works hand in hand with construction industry anually performs over inspections in the field of supervision of construction; carries out over 800 documenntary checks; annually investigates over 3000 complaints annually identifies more than 400 cases of unauthorised construction during the inspections detects a significant number of offences, committed by technical supervisors, heads of construction, expertise contractors and contractors

9 Procedure for certifying managers of the main areas in the construction technical activity bound to change Residential buildings (more than 5 floors) Public building (foreseen with more than 100 people) qualification certificates are granted for a manager of design and construction works presently from 2018 Petrol and gas stations Undergrounded structures (other sophisticated technology structures) 1 or 2 apartment houses Residential buildings (less than 5 fl.) Public building (foreseen with less than 100 people)

10 Construction defects To build To buy Defect What next? Compulsory Civil Liability Insurance for designer of a construction works, technical supervisor of construction and contractor; the insurance object is the policyholder s liability for the damage, caused to the third persons; The defects of construction works should be defined in a period not less than 5 years after issuing of completion certificate; New. Requirement to allocate funds for three years in order to ensure the defect removal. The amount cannot be less than 5 per cent of the construction cost of the building.

11 Challenges facing the construction sector: Skilled labour shortages Sustainability concerns Next steps: preparing for the digital future

12 THANKS Any questions? You can find me at