Setting-up a Business

Construction Process

Assessment of Urban Conditions

This assessment is being done based on the extract from the Urban Plan or the Act on Urban Conditions, not older than 6 moths. Both documents are issued by the competent city, or municipal authorities, or the ministry competent for urbanism affairs.

Acquiring Construction Land

Construction land can be acquired by leasing land, obtaining the “right to use” land, or converting agricultural land into construction land.

Obtaining a Construction Approval

Prior to the construction of a structure, a potential investor is obliged to obtain the construction approval and prepare the technical documentation for the construction (general project, conceptual project, main project, execution project and as-built project).

As part of the application, the following should be submitted:

  1. An excerpt from the Urban Plan or the Act on Zoning Conditions, not older than 6 months;
  2. A conceptual project, in compliance with the excerpt or the act referred to in the point 1 of this paragraph;
  3. A proof of ownership, or leasehold rights to the construction land, or property rights in an object, or the right to use non-developed construction land;
  4. Other proofs required in the Urban Plan or the Act on Zoning Conditions.

The construction approval is issued within 15 days from the date of submission of the application. The approval for infrastructural works is issued by the ministry in charge of the construction industry (the Ministry of Capital Investment), while the issuance of the approval for other structures is the responsibility of the municipality.
The construction approval expires 2 years after being issued, if the construction hasn’t been started. The approval is not obligatory for the construction of auxiliary structures, nor is it necessary for adaptation or renovation, but it is necessary for the reconstruction of premises.

Notice of the Start of Construction

The investor is obliged to provide the office in charge of issuing the construction approval with the name of the contractor, construction start date and completion target date within a period of 8 days before the construction starts. Also, an investor shall submit the confirmed main project, report on completed technical control, construction approval, proof of payment of compensation for the development of construction land, and proof that the administrative fee has been paid. In addition, an investor shall also report to the municipality office in charge of inspection that the construction of the structure has started.

Construction

Throughout the construction phase, the investor must have construction documents (if the main project does not contain details required for the construction process) and provide supervision.

Technical Inspection

A technical inspection of a structure is done upon the completion of construction i.e. the completion of all the works specified in the construction approval and defined in the main project, or upon the completion of a part of the structure for which an occupancy permit may be issued in accordance with the Law.
Upon the request submitted by the investor, a technical inspection may also be carried out simultaneously with the construction process, if it would not be possible to verify the actual condition of certain parts of the structure after its completion.

A technical inspection includes the control of compatibility of as-built conditions with the construction approval and technical documentation on the basis of which the structure was constructed, as well as with the technical regulations and standards applicable to certain trades or materials, equipment and installations.

Probation Occupancy

To ensure the suitability for the use of a structure, an assessment and verification of installations, devices, machinery, stability or safety of structure, devices and equipment for environmental protection may take place. If envisaged by the technical documentation, the commission in charge of technical inspection may propose to the relevant office to approve probation occupancy, provided the conditions are met. The probation period that cannot last longer than 1 year. Upon the expiration of a probation period, an investor is obliged to submit the results of the probation occupancy to the relevant office.

Obtaining an Occupancy Permit

To obtain an occupancy permit, the investor must submit the main project (with possible changes made during construction) which is compatible with the construction approval and the technical inspection of a structure.
Structures may be put in operation only upon obtaining the occupancy permit. The office competent for issuing the construction approval issues the occupancy permit within 7 days from the date of receiving the commission’s findings which have established the structure to be suitable for use.

A structure is suitable for use: if it is constructed in accordance with the construction approval and technical documentation that served as the basis for construction, if evidence of the required quality of works and materials, installations and equipment is provided by an authorized organization, if a survey of the structure has been provided, and if other prescribed conditions have been fulfilled.
Registration in the Cadastre

The final stage in the construction process is the registration of a structure in the real Estate Cadastre, after the occupancy permit is obtained.

 
 

Contact our Experts

Mirjana Dimitrijevic
Legal Advisor
Phone: +381 11 3398 545
E-mail: Mirjana Dimitrijevic

Jovan Miljkovic
FDI Advisor
Phone: +381 11 3398 629
E-mail: Jovan Miljkovic

 

Related information

Full version of the Law on Planning and Construction (pdf, 586 Kb)

 

 

Top of page