A number of new SBC and amendments to the current SBC along with amendments to the Procedure for Developing Project Documentation for Construction Projects came into effect in early July. What has changed for developers, what do amendments to the Procedure for Developing Project Documentation provide for, in what cases must the project documentation be adjusted now and how much will this cost the developers?
How were things before July 2?
Clause 4.8 of SBC А.2.2-3-2014 “Structure and Content of Project Documentation for Construction” provides that project documentation for houses, buildings, structures must be developed subject to building codes and standards in effect as of the date the project documentation is handed over to the developer by the design organization.
The project documentation for completed construction projects or construction in progress as per approved project was not, and is not, subject to adjustment in connection with new regulations put into effect.
An exception to this rule is only where new SBC or other regulations are put into effect providing for more stringent safety requirements and requirements for accessibility by low-mobility population groups – in this case, project documentation must be adjusted and aligned with new building codes.
Any failure to comply with these rules was punishable by a penalty of up to UAH 170 thousand imposed on the design or expert organization – for handing over the project documentation developed under ineffective SBC to the project owner or issuing a positive expert opinion on the same, and by a penalty of nearly UAH 85 thousand imposed on the developer itself – for project construction without aligning project documentation with new SBC.
However, neither the Procedure for Developing Project Documentation, nor SBC А.2.2-3-2014, nor other regulations specified what effects the new SBC would have on the developers if project documentation has already undergone expert examination, has been handed over to the developer and has been approved but the construction has still not been started.
In this context, the Ministry of Regional Development, Construction and Housing and Utilities of Ukraine explained in its Letter No. 7/15.1/9361-18 of September 18, 2018, that the project documentation that had already undergone expert examination in the prescribed manner and had already been duly approved would not be subject to adjustment in connection with new SBC put into effect.
Hence, up until July of this year, project owners who developed or contracted project organizations to develop any construction project had no reason to be concerned about the adoption of new building codes.
What has changed since July 2?
On July 2, amendments to the Procedure for Developing Project Documentation for Construction Projects came into effect – the Procedure was supplemented with Clause 15.5. In addition to repeating the contents of Clause 4.8 of SBC А.2.2-3-2014 “Structure and Content of Project Documentation for Construction”, the said clause stipulates that the approved project documentation shall be subject to adjustment in connection with new regulations put into effect if the developer has not yet obtained documents authorizing to carry out preparatory and/or construction works.
Whom are the amendments applicable to?
All who ordered or developed a project for new construction, reconstruction, restoration, major repair of facilities and complexes at such designing stages as feasibility study, feasibility calculations, sketch project, project, or working project will be obligated to adjust and bring the project documentation in line with the new regulations.
Therefore, such amendments are applicable to all developers, notwithstanding the consequence class of the facility they intend or intended to build, reconstruct or restore.
What are the consequences of such amendments?
Project owners who have approved, obtained a positive expert opinion for, and if necessary agreed with government bodies the project documentation, but have not yet obtained a permit to perform construction works will have to adjust the project documentation to bring it in line with the new building codes.
In view that construction projects must be agreed and re-approved in the same manner in which they were approved, project owners will have to undergo once again all of the stages of project documentation approval should the "new regulations" be put into effect. However, it is not clear from the amendments what "new regulations" may refer to or what they may address in particular. More so as such Procedure provides for no restrictions and exceptions.
Furthermore, considering that construction projects for the facilities belonging, by their consequence classes, to medium (CC2) and high (CC3) consequences require an expert examination, then even if developers have already obtained an expert report for the project, the adjusted project documentation for constructing facilities involving medium (СС2) or high (СС3) consequences will again be subject to expert examination.
Thus, the amendments will result in delaying constructions and rise in real estate development costs.