In line with GRATA Law Firm’s practice of keeping clients informed of important legal developments, we would like to draw your attention to the review of the Law mentioned above.
On 10 July 2012, the Law of the Republic of Kazakhstan 'On Amendments to Some Legislative Acts of the RK concerning the Reduction of Permits and Approvals and Optimisation of Controlling and Supervisory Functions of State Authorities"(hereinafter - the 'Law') was passed, coming into force from 7th August 2012.
This brief review describes the changes made by the Law to the legislative acts of Kazakhstan on licensing, as well as architecture, urban planning and construction activities.
1. Abolition of licensing for a number of activities in the area of industry, as well as architecture, urban planning and construction
Perhaps the most significant change was the abolition of licensing for certain activities and/or sub-activities, which previously required a license.
Now more than 5 activities in the field of industry, design and constructioncan be performed without licenses. ( please see attachment to the Client Note)
2. Expanding the scope of the compulsory design and technical supervision
Earlier, the Law 'On Architectural, Urban Planning and Construction Activities', dated 16 July 2001, stipulated obligatory design and technical supervision only for facilities which require approval from state acceptance committees in order to come into operation. Now, design and technical supervision is also required for objects to be accepted by the acceptance committee (which is not part of the State).
3. Replacement of the permits for construction and installation works with arequired notice for the commencement of such works
According to the Law of the Republic of Kazakhstan 'On Architectural, Urban Planning and Construction Activities', dated 16 July 2001, (new version), to perform construction and installation works the developer is now required only to notify the authorities of architectural-construction supervision upon the commencement of works (at least 10 business days prior to the start date), instead of obtaining the respective permit.
In this case, the State Architectural and Construction Inspectorate is entitled to visit the site within five business days of receiving the notice and check the validity of the information specified in the notice.
4. Upgrading of administrative liability for violations in the construction areas
Monetary sanctions for violation of several articles of the Code of Administrative Violations (hereinafter - the 'Administrative Code') were increased.
For example according to Article 235 of the Administrative Code, construction without design documents or without examination of the project shall entail fines: for legal entities which are small or medium business entities, - from 190 MCI (before amendments it was from 20 to 50 MCI), and for legal entities which are large business entities - 280 MCI (before amendments it was from 100 to 200 MCI).
Repeat violations of Article 235 of the Administrative Code occurring within one year of the imposition of an administrative sanction will result in dramatically increased fines and the suspension of construction.
In addition, two new articles were added to the Administrative Code
In connection with the introduction of the notification procedure for the commencement of construction works the concept of liability for performing such works without having provided notice to the authorities responsible for architectural and construction supervision was inserted into the Administrative Code5. Findings
The Law aims to both reduce administrative barriers in the industry and construction area, and to improve the quality of design and construction. This is expressed in the tightening of requirements for the construction process, as well as the assessment of projects and provision of engineering services.
1. Abolition of licensing for a number of activities:
A) in the field of industry:
B) in the field of design:
C) in the field of construction:
Any questions regarding the matters herein may be addressed to:
Leila MakhmetovaCounselGRATA Law Firmlmakhmetova@gratanet.com
Link to the article at Hieros Gamos
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