Construction license: procedure for obtaining, problem points, practical experience

Construction License (permit for construction works) is a decision taken by the licensing authority that a specific economic entity has the right to carry out construction works.

The licensee may be both a legal entity of any organizational and legal form, and an individual entrepreneur. However, LLCs or joint-stock companies (JSC) more often apply for the Construction License.

In this publication, we will use the case from our practice to elaborate on the kinds of construction works and most common problem points the applicants face when obtaining the License. 

What construction objects shall you obtain the License for?

Construction of not all objects is subject to licensing in Ukraine. There is a number of strictly defined types of them. In particular, as provided by the License Terms, the license must be obtained for construction objects with the following classes of consequences:

• Medium class of consequences (СС2);
• High class of consequences (СС3).

It is not required to obtain the Construction License for the objects with the low class of consequences (CC1).

Related article: Difference Between Classes Of Consequences CC1, CC2, CC3: How To Determine Them

So, before you start collecting documents to apply for the Construction Licence, you should first define the class of consequences of the object.

Procedure for obtaining the Construction License

Pursuant to the provisions of the License Terms and the existing practice of obtaining licenses, the procedure for obtaining a Construction License involves the following steps:

• Step 1. To determine the class of consequences for the specific construction object.
• Step 2. To select the types of construction works to be carried out during the construction (according to the approved Classifier).
• Step 3. To prepare a set of documents and to submit it to the licensing authority.

You can find the full list of the required documents here.

Our service: Construction License

License Issuing Procedure

After the documents are submitted to the licensing authority, they are processed at several stages:

1. The submitted package of documents is first reviewed by the specialists of the regulatory authority within 10 days, and then they transfer documents to the Licensing Commission. 
2. Within the following 10 days, the Licensing Commission thoroughly analyzes the received documents for compliance of the information stated therein with the License Terms. Based on the results of the review, they issue a corresponding conclusion.
3. In case of a positive conclusion, the licensing authority makes a decision to issue a license within 7 days (indicating the declared construction works in the Annex) and notifies the applicant of its decision on the official website.
4. The applicant pays the state license fee that amounts to one minimum subsistence level (for an able-bodied person). 
5. After the applicant provides the regulatory body with a documentary proof of payment of the state fee, the license is issued in hard copy.

Related article: Our Lawyer Helped To Obtain A Construction License, As Well As High Risk Works Permit And Declaration.

Problem points in obtaining the Construction License

Despite the rather clearly defined procedure for obtaining the License, it is not so easy to get it in practice. The thing is that there is no any regulatory enactment that would clearly stipulate the requirements for each particular type of works specified in the Classifier.

Today, the members of the Licensing Commission are guided solely by their own subjective point of view on these issues.

Due to this situation, the licensing authority has almost unlimited number of reasons to refuse to grant the License. And its decision cannot be challenged.

The most common problem points in obtaining the Construction License include:

• Insufficient regulation of requirements for certain types of works under the Classifier;
• Statements to be submitted to the licensing authority must contain a large amount of information. The slightest omission will result in a refusal to grant a license;
• Registration of the above statements and other license documents requires qualified knowledge;
• The process is often money and time consuming.

Our practical experience in obtaining the Construction License

Case. We were contacted by a Client from the Dnipropetrovsk region with a request for assistance in obtaining the Construction License. We explained him the rules of cooperation with our firm and advised on obtaining the required License.

In the past, the Client had negative experience of working with several companies, which, having taken the money in advance, did not fulfill their obligations. But our extensive experience and a large number of successfully obtained licenses convinced the Client to trust us.

It is also worth noting that the Client wanted to be ready for the earliest meeting of the commission of the State Architectural and Construction Inspection of Ukraine, so we had only a few days to fully prepare and submit documents.

Our actions. Our lawyers managed to collect and professionally execute the entire package of necessary documents within one day and sent them to the Client by e-mail for signature. On the evening of the same day, the Client sent all signed and certified documents to Kyiv, and the next day our lawyer submitted the entire package of documents to the licensing authority.

Outcome. The Client obtained the Construction License on a turnkey basis in the shortest possible time. We received a grateful Client and one more case with a positive decision of State Architectural and Construction Inspection of Ukraine.

Related article: Our Company Provided A Subsidiary Of A Large Chinese Construction Company In Ukraine With Comprehensive Legal Support. 

Conclusion

As you can see, the abovementioned licensing procedure is complex and requires specific knowledge, as well as extensive experience of cooperation with the licensing authority.

Due to the inadequate legislative framework in the sphere of construction licensing, complex nature of License Terms and widespread practice of delaying the licensing procedure, obtaining the License without legal assistance and support becomes an extremely difficult task.

In order not to spend much time and avoid refusals, we suggest you to use our company’s services. Our lawyers have extensive experience in communicating with the State Architecture and Construction Inspectorate of Ukraine and successful cases of obtaining Construction Licenses for objects of different classes of consequences under their belt.