LASG advise property owners to obtain valid development permit

The Lagos State Government has asked property owners within Federal Government acquisitions to obtain valid development permit to prevent their buildings from being sealed or demolished.

The General Manager, Lagos State Physical Planning Permit Authority, Mr Funmi Osifuye, said the validation was necessary to prevent disruption or demolition by LASPPPA due to lack of building plan approval.

Osifuye said the agency had begun a post-construction audit of all existing structures in the state to ascertain buildings without development permit as well as those distressed.

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He added that all landed property and housing developments within the official land of Lagos, irrespective of private or Federal Government acquisitions fell under the purview and control of the state government.

The GM stated that the misconception by residents of Federal Government acquisitions within the state that their property fell under the purview and administration of the Federal Government was wrong.

Osifuye said that the state government through LASPPPA in conjunction with the Lagos State Building Control Agency had the authority and control over all buildings within the state.

He said, “As a result, every developer or property owner in the state must comply with the specifications of the state government’s Ministry of Physical Planning and Urban Development. Every property or building in the state must be validated and regularised in line with the specifications of the agency.

“This can be done by submitting `As built Design Drawings’ to LASPPA’s District offices or submit electronic format of the drawings online through Electronic Planning Permit platform.”

Osifuye said that the state had the statutory right to issue development/building permit since 2003 when the Federal Government stopped the issuance of such permit.

He added, “In line with the Lagos State Urban and Regional Planning and Development Law 2010, it was established that every property certification issued by the Federal Government before 2003 remains valid, while subsequent certification, validation and regularisation will be done through the state government.

“This implies that state governments have the responsibility to safeguard lives and property in their jurisdiction, irrespective of private or Federal Government acquisition and will also collect the revenues therein.”

Osifuye told the News Agency of Nigeria that the Land Use Act of 1978 stated that every land in a state solely belonged to the governor of the state.

Greek property market outlook 2019

Due to the Greek economic slump, which began in 2008-2009, Real Estate faced a huge decline. For almost a decade prior to the global financial crisis of 2007–2008, the real estate market and property values increased with an impressive ratio. The main reason for this incredible performance of the real estate sector was the unlimited and easy access to cheap finance which was available both to developers, investors, and buyers. In reality, the Greek economy could not, in any possible way, sustain the level of prices and could not absorb the huge number of new properties that were constructed all over the country with a super-fast pace.

Seeking luxury standards of living and hoping for easy profits, Greeks rushed to participate in that irrational market. All interested parties and stakeholders dazzled by the amazing performance of the sector were not prepared for the downward part of the cycle and definitely not for a global recession. The 2008 financial crisis is considered by many economists as one the worst financial crisis since the Great Depression of the 1930s. It has affected each and every market around the world.

Markets backed by strong economies such as Germany or the UK faced the side effects of the global crisis but in a soft manner and recovered fast. Other countries such as Greece, Cyprus or Portugal had to face the harsh reality. Overspending citizens, weak banks, impoverished economies, heavily indebted households, and governments had to face the ugly ruthless face of the financial and capital markets.

In Greece where property traditionally was considered as one of the safest, almost risk-free investments, the impact of the property market crash was destructive, dragging almost all the sectors of the economy including the banking system into an incredible swirling fall. After several assessments on the internal and external debt of Greece, the huge increase of unemployment, the collapse of the stock market, still, no one has presented the real loss in nominal value of the real estate in Greece as an asset class during this period of recession.  By providing temporary and futureless protection of property ownership, all the governments is doing is to try and cover the huge losses of the property assets.

This temporarily stops the processes of forced liquidation but property owners who cannot sell their properties won’t understand the losses they will have to face upon the sale or confiscation of their assets. It is human to forget and adjust to the new established environment in order to survive. After ten years of real estate inactivity and annual price declines, Greeks have become used to the new levels of the market. Only after a bank or a fund will auction their properties for a fraction of what they initially paid will they realize that not only they lost the asset but they still owe a fortune to the lenders.

Property owners will not understand exactly what happened and how irreversible the situation is. According to the Bank of Greece, at the end of 2017, real estate in Athens was 44% cheaper compared to its peak of 2008. However, the fall in property prices is slowing down. In 2015, the price per square meter fell by 5.3% in 2015, by 1.8% in 2016, and by only 0.9% in 2017. In quarterly terms, prices have even stopped falling – they remained constant in the last quarter of 2017. House prices finally showed a marginal increase in the first three quarters of 2018, after declining since 2008. It is true that this is a very positive sign.  There are two important elements that the report of the Bank of Greece and other reports cannot display.

First, the fact that all the figures and numbers would be completely different if the market was allowed to operate properly without government intervention. That means allowing auctions to happen without any restrictions. Secondly, the last three years have seen a lot of real estate investment related to the increase of tourism. This is affecting the numbers and the market dynamics, which is not representing the correct market outlook for the residential and commercial/office properties around the country.  Another reason that we are observing a small positive change in the market is the mandatory increase of the tax values which has been implemented over the last few years. This increase is completely artificial and does not change or affect positively the market values.  The reality of the Greek property market remains misty.

There are some areas such as popular islands where holiday houses show an increase in demand based on the impressive current status of Greece as a popular tourist destination in the region as well as the golden visa program. In reality, the core section of the housing and commercial market around the country is still suffering from low demand and lack of affordability as the average purchase power of the Greek family has been weakening year after year since the beginning of the recession.

Source: Property Investment News

Expert says market research will reduce vacant houses

Vacancy rate would continue to be on the increase except stakeholders decided to engage in pre-investment market research before mobilizing to construction sites, Professor Olugbenga Nubi, Director, Centre for Housing and Sustainable Development, University of Lagos, has said. With the research, Nubi said investors would be able to decide ahead the housing types that would be the market would need and be able to take.

Vacant houses dotted the skyline of many major cities in Nigeria including Lagos, Abuja and Port Harcourt, Rivers among others. Commenting on the matter recently, Nubi said, it was dangerous and counter-productive to draw a conclusion on reasons for vacant properties without a scientific research.

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He pointed out that most property’s investors were building 4 bedroom duplexes where the need was for studio and 2 bedroom apartments.

“People who need just a room ended up renting houses that they do not really need,” he said, adding that in developed economies, the advent of Airbnb has helped resolve this problem.

Besides, the professor stated that it has been established that in most part of Lagos and Abuja, properties have been used as a means of preserving  ill-gotten wealth.

He said: “Since both local and foreign banks are no longer a good option for money laundering, properties were bought with the intention of future sales.

“Our recommendation to government should be balanced with strong research support.”

He pointed out that all over the world, tenants were vulnerable and were often protected.

According to him, government must change policy that made land to be as expensive as N100 million and high cost of construction.

He said: “If we reduce cost of procurement to less than N75 million for a building of six flats -which is possible in Abuja with it’s stable and high load bearing capacity soil, rent will drop and default will disappear.

Nubi urged institution to sponsor researches, pointing out that the  future is for nations driven by knowledge (information), technology and competition.

According to him, if developers were encouraged to do pre investment studies, they would become more relevant and respected. “We will have few failed projects,” he said.

Corroborating Nubi, another professional, Dr. Joshua Egbagbe, said government and stakeholders should start taking decisions and formulating policies using well researched information that are timely, adequate and concise.

Currently, report from Tayo Odunsi-led Northcourt Real Estate Limited said that vacancy rates in the standard residential apartments hovered around their first quarter’s 2018 figures with Ikoyi hitting 30 per cent, Ikeja GRA -26 per cent and Oniru -33 per cent among the highest.

“GRAs 1, 2 and 3 in the oil city of Port Harcourt recorded vacancy rates of 6 per cent, 11 per cent and 20 per cent respectively and continue to show potential principally for their security advantages when compared most of the city,” the report said.

However, vacancy rates have remained low for the more popular Gwarimpa – 3 per cent, Katampe -21 per cent and Wuse -10 per cent areas of Abuja.

Source: Emmanuel Badejo

FCTA cautions property owners against patronizing touts in AGIS

The Federal Capital Territory Administration (FCTA) has called on all property owners in the territory that have any transaction with the Abuja Geographic Information Systems (AGIS) or the Land Administration Department of the FCTA to desist from patronising touts.

The FCTA Director of Land Administration, Adamu Jibrin Hussaini, made this call in his office after appraising the work of staff interfacing with the public.

In a statement from the AGIS, Hussaini observed that touts had been surreptitiously positioning themselves claiming to be serving as intermediaries between the office and the public.

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The director observed that the illegal activities of the touts were sending negative impression to the public and must be immediately stopped.

He advised the public to disregard any demand for money by anybody who claimed to be an agent to facilitate any kind of transaction; including application for Power of Attorney, Legal Search, Deeds Assignment, Deed of Release and or Legal Mortgage.

He emphasised that processing of applications in AGIS did not attract any other charge except the official processing fees stipulated by AGIS, and therefore, advised property owners and would-be property owners that had anything to with AGIS to be wary of activities of touts because they were impostors.

Source: Daily Trust

Should construction companies learn from their in-house data?

The construction industry involves a lot of data, from pre to post-construction. This involves construction data revolving around the planning stages, construction site information, accounting, workflow, job cost management, project management and much more.

However, while a lot of information exists that contractors could use to save time and money, this information remains underutilized because of the lack of the right tools to collect and analyze data in ways that would have significant project results. Fortunately, this is now all about to change.

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How to get the best out of your construction data

Contractors are now discussing and considering different solutions and visiting construction software conferences, with the entire industry  looking for more efficient ways to get smart about data. So what factors are necessary for subcontractors to get involved in construction data analytics technology and software?
A better overview about your project will naturally save you both time and money on current projects. But it will also help in terms of your future projects. Here are some of the major advantages:

  • Contractors can obtain a comprehensive suite of solutions for the entire company, allowing you to control every step of the process. You can imagine how many project movements take place during the day. But you can reduce these moves to a minimum, saving yourself and others a lot of time in the process.
  • All contractors can benefit from data tracking analysis. True data analytics is more than simply tracking down job costs and cash flow. Data analysis can also prevent future problems and risks to your business, as it allows for far more accuracy in future projects with increased efficiencies. Analyzing data results in better plans and predictive analyses, and being on time and in total control over your budget lends you a good reputation, which in turn leads to a higher number of clients. In other words, while
  • data analytics can solve your project tasks and problems on a current project, it will likewise help to make predictive analyses with more and better insight for the same kind of projects in the future.

To take full advantage of data analytics software, you need to understand the right tools for the job as well as your bottleneck.

A construction management software or ERP solution could be essential in order to stream your data across the company.

From project management to accounting, all processes need to be in order. A software solution or internal ERP system can help to communicate with different parts of company units, thereby using collected and stored data more efficiently. From that data analysis, everyone can work with higher success and provide good values for business models. An ERP system and construction data analytics solution can demonstrate hidden values that remained previously unseen.

One important question remains: what can be done with that data and what can be done to improve overall effectiveness, saving your company time and money? This question is being answered by firms who are hiring professionals to get the most out of the business intelligence process.

These new and highly efficient software solutions and tools link all units with different, often complex operations into one integrated system. The solutions provide excellent support, from small building projects to large, with such an innovative approach ushering in a new era for the construction data industry.


Japan: Construction sector tries to defy demographics with data

Blue-collar workers can afford to be picky when considering job prospects thanks to Japan’s historically tight labor market. That means few enter construction, where the hours are long and the pay is relatively low.

The Fund for Construction Industry Promotion, a trade association, has a plan to draw more laborers to the business. In April it will roll out a new database that will aggregate workers’ experience and qualifications to help match them with employers. In addition to smoothing out personnel transactions, the system’s creators believe it will lead to better pay and working conditions.

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Construction has been particularly hard-hit by Japan’s labor shortage. Manufacturing, which offers higher pay and shorter working hours, attracts more workers.

The construction sector’s problem will only worsen as Japan’s population ages. A government study projects the country’s workforce to shrink 20% by 2040, and few young people are eager to join the trade.

The new database is expected to help workers employed by low-level subcontractors who are stuck with low pay and few benefits.

These laborers often sign up for temporary, irregular work, making it difficult for other employers to evaluate their expertise. With all of their experience accumulated in one place, companies will be able to actively recruit talented workers at higher pay. Better wages may also help attract younger recruits.

“This system is a great opportunity to get more young workers into the industry,” said Takashi Ueda, who overseas the construction site of an office building in Tokyo.

55 different specialties will be recorded in the system, so if there is a regional shortage of scaffolders, specialists from another area could look for jobs there.

“If we can gather a lot of data, benefits may emerge that we hadn’t even thought of,” said a manager of the database at the trade association.

The system, which is currently operating on a trial basis, has already registered about 17,000 workers. The association hopes to have 1 million registered within the first year of operation, and all of the industry’s roughly 3.3 million workers within 5 years.


Is virtual reality the future of building construction?

40% of architects and designers say technology will have biggest impact on the  industry in next 18 months.In fact, technology was identified by 40% of research respondents as having the biggest impact on the design process in the next 18 months, followed by a renewed focus on fire safety (28%) and new regulations (23%).

The study surveyed 250 architects and designers across the UK to gauge their opinions on the use of technology in the design process, their use of flame in projects, and the overall challenges faced.

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Three quarters (74%) of architects and designers are already using digital technology to visualise projects during the building process, while a further 20% don’t currently use it but seek to do so in future.

Just more than one-third (34%) believe smart technologies are already influencing the industry, 23% said they believed trends like virtual reality would impact in the next six months, and 24% said augmented reality would make its mark in the next 18 months.

“There’s little doubt that technology is making the lives of architects and interior designers easier. But what the research shows is that technology adoption isn’t slowing down, with respondents placing a strong focus on virtual reality, augmented reality, and other technologies such as robotics, 3D printing and modelling and even the use of drones in the short and longer-term future”

“This focus on technology, and indeed the appetite for it, is reflected in our own business, with a lot of demand for flame technology and flame effects as an alternative to real flame installations.”

The majority of respondents (78%) said they had concerns over including flame in their projects, but 53% noted if safer technology was available, they would reconsider.


FCTA gives property owners February deadline to pay ground rent

The Federal Capital Territory Administration (FCTA) has called on all property owners in the territory to pay all outstanding ground rents and sundry bills before the end of February, 2019.

The FCT Director of the Abuja Geographic Information Systems (AGIS), Dr. Isa Ibrahim Jalo, made this call in his office at the weekend.

In a statement from the Information and Customer Service of AGIS and signed by Sule Haruna, Dr. Jalo said the payment of ground rent was statutory for all land and property owners and must be respected or enforced.

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Dr. Jalo said there were stipulated sanctions spelt out by the law for all defaulters of such payment, including outright revocation of titles.

He warned that the law was blind and therefore not a respecter of anybody; stressing that all defaulters would face the full wrath of the law.

He said the FCTA had indeed given one month grace for all property owners in the FCT to pay all accrued ground rents and sundry bills, including arrears, to clear them forthwith.

“There is no basis for plot allottees, property owners, as well as beneficiaries of the sale of Federal Government houses in Abuja not to pay their bills because such payments are being used for infrastructural development and provision of services,” he added.


Source: Daily Trust

Just 9.1% of America’s construction workers are women— Report

Sinade Caroll was on her way home from nursing school one evening six years ago when she saw an ad on the New York City subway for Non traditional Employment for Women(NEW), an organization that trains women for careers in construction, utility and maintenance trades.

“I didn’t know that women were construction workers, or that women were actually in these fields where there are mostly men,” the 26-year-old says. “I didn’t experience that growing up and something told me to call the program.”

Caroll had earned her GED in 2011 and was hoping to find work as a medical assistant after nursing school. But she called NEW to learn more, and says she realized immediately that she had found the right career path for her. She quit nursing school and enrolled in the organization’s eight-week apprenticeship program, where she learned everything from how to accurately read a measuring tape to how to lift heavy materials without getting hurt.When her apprenticeship was done, Caroll joined the New York City District Council Carpenters Union and found a full-time, paid job as a construction worker within two weeks. At her current job, she says, her role is “putting up the sheetrock and framing hardware ceilings.”

The construction industry is expected to see 12 percent employment growth between 2016 and 2026, according to the Bureau of Labor Statistics, and as the industry continues to face a worker shortage, many state legislators and professional organizations are doing all they can to bring more women like Caroll into an industry packed with diverse opportunities and the potential to earn strong wages.

Currently, women make up 9.1 percent of the U.S. construction workforce, and earn an average 95.7 percent of what their male counterparts make, according to The National Association of Women in Construction (compared with the average 82 percent  women earn of what their male counterparts make across industries.)

The average annual salary for construction workers in the U.S. in 2017 was $38,890 according to the Bureau of Labor Statistics (BLS), though pay varies based on experience, job title and location. U.S. News & World Report found that in other construction roles, including structural iron and steel workers and construction managers, average salaries climbed as high as $101,000.

Of the women currently employed in the construction industry, 45 percent are in sales and office roles, 31 percent are in professional management roles, 21 percent are in natural resource, construction and maintenance roles, 1.5 percent are in service occupation roles (including cleaning and maintenance jobs) and 1.4 percent are in production, transportation and material moving roles.

Schillivia Baptiste, who owns the construction firm Laland Baptiste, says that as a kid who loved STEM classes, she had no idea that she could find a career in construction as an engineer. Her introduction to the industry came in high school when she attended a summer program at Manhattan College and learned about the different type of jobs you could get with an engineering degree.

She earned her bachelor’s degree in civil engineering from New York University Tandon School of Engineering (formerly the Brooklyn Collegiate and Polytechnic Institute). In college, Baptiste interned for the New York State Department of Transportation as a transportation construction inspector and at the Port Authority of New York & New Jersey as a traffic engineer. When she graduated, she worked at a private civil engineering firm in Huntington, New York, for 13 years, doing site development work.

“I think there is not enough introduction at the elementary and middle school grade age of what young girls can be,” says Baptiste, who links the industry’s scant female workforce to a lack of early exposure. “I think it starts there, and before you get to high school you’re choosing a high school that has something you want to study and then by the time you get to college you’re able to make a decision and say, ‘OK, this is what I want to do.’”
Bringing more women into the industry

Professional organizations, vocational training programs and lawmakers all have vital roles to play in bringing more women into industries like construction that have historically been predominantly male.

NEW, the workforce development program that helped Carrol launch her career in construction, was founded 1978 and works primarily with low-income women from the five New York City boroughs. Through partnerships with labor unions, contractors and the government, NEW has helped more than 1,300 graduates find stable employment as electricians, carpenters, plumbers, painters and iron-workers since 2005.

In Massachusetts, the state Gaming Commission has been proactive about the opportunity to build gender diversity on new casino construction projects, passing a legislative mandate for casinos to increase workforce diversity. The mandate requires licensees to put women in 6.9 percent of the construction jobs.

“In order to make this work, you have to have a kicka– champion, and you’ve got to kick these doors down,” Steve Crosby, then-chairman of the commission,said.

The commission has been tough about enforcing the mandate. Crosby said that enforcing the mandate hadn’t been easy, but the commission followed a strict protocol to ensure that organizations were complying.

“We go union by union, contractor by contractor — ‘Do you have that? Have you met the target?’” he says. “If you are an outlier — somebody else is doing 8 percent women and you’re doing zero percent women — we call you out.”

Even as CEO of a company she founded, Baptiste says she’s had several encounters where she had to prove herself as a leader at work.

“Graduating as one of five females in my class, it was the beginning of a world where some males only see you as an assistant to someone, or the secretary to someone else,” she says. “It’s always interesting going into a meeting where they are like, ‘Who’s Baptiste?’ and I’m like, ‘It’s me.’”

“I’ve had opportunities where I’ve had to manage males, and you can sense them being uncomfortable with my authority or sense of knowledge,” she explains. “But my goal stays the same, and that is to train them, share that knowledge and help them be able to function in their position and overall on their team.”

Amanda Gray is a national architectural and commercial account manager for The Dow Chemical Company. She says that as an executive in construction, it’s not uncommon for male colleagues to doubt her credibility.

She recalls a time when she was leading a meeting, the only woman in a group of 14 people at a job site. Gray started talking about the technical details for an upcoming project when a male consultant stopped her and asked, “Ma’am do you even know what the cut section of a building is?”

Gray says she started laughing, because he was challenging her knowledge of one of the most basic aspects of construction. “Everyone around us started laughing as well,” she says. “The good thing is, you know, I had built credibility with these people in the past and someone stepped in and said, ‘I can’t believe you would ask her that question.’”

Though these attitudes about women in construction persist in some corners, Gray, Baptiste and Caroll all say that overall, the industry is becoming more diverse and more welcoming to women. In fact, Caroll says that in her experience in the field, she’s seen a 2:1 male-to-female ratio on some of the construction sites where she’s worked — a significant jump from previous years.

Baptiste says that for women who are interested in entering the field today, there are many organizations that can offer them assistance and mentorship. She notes the support she’s received from the national organization Professional Women in Construction. She says she’s been part of the group for several years, and it’s been an important source of industry contacts and potential clients.

“There are a lot of organizations like Professional Women in Construction that provide mentorship, networking and opportunities for growth and business development to women in the industry,” she says. She advises anyone interested in construction to find a local support group to join. ”[These organizations] are not only for you if you’re an owner, but even if you’re just an intern in college, in high school or just starting out in the industry.”


Uzbekistan Introduce New Reforms For Construction Industry

The construction industry in Uzbekistan is undergoing significant changes following the enactment of Presidential Decree from November 14, 2018 No. UP – 55771 (“Decree”). The Decree introduces new procedures for project appraisal, construction and commissioning processes, and covers issues concerning licenses, certification, land allocation, tax benefits and modification principles of current norms. Some changes have been in force since December 1, 2018. Others will take effect in the nearest future.

Allocation of land

From January 1, 2019, expenses incurred as a result of tardy or undue allocation of land for construction are subject to reimbursement at the expense of local budgets, with subsequent recovery from the person responsible in recourse. Such responsible parties are relevant khokims (heads of local municipality offices). Their personal responsibility is being introduced for the timely and proper allocation of land for construction, as well as for the prevention of construction and installation of objects without reference to the approved master plans for districts (cities) or land allocation schemes (in the absence of master plans). These changes aim to eliminate the cases when objects are demolished and their owners are left with no compensation after the land is regarded as being unlawfully allocated by state organs.

Certification and Licenses

From January 1, 2019, certificates and licenses for engineering and construction activities issued by authorized agencies of member-states of the Organization for Economic Co-operation and Development (OECD) will be recognized in Uzbekistan.

From March 1, 2019, the Association of Consulting Engineers of Uzbekistan (the “Association”) will carry out the certification of specialists in the field of design and construction. For legal entities to render engineering services, they need to have at least two in-house certified engineers in their staff. This requirement does not apply to members of the Association. Moreover, author supervision, technical supervision and construction inspection of buildings will be carried out only by specialists certified in the prescribed manner.

From July 1, 2019, the licensing procedure in the sphere of engineering and construction will exclude the need to sign a license agreement, as an effective mechanism for verifying the compliance of the licensee applicant with the license requirements and conditions prescribed in the law will be formed.

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Tax benefits

After the enactment of the Decree, subcontractors, including foreign ones, and investors fall within the category of entities that are exempted from payment of value added tax on works (services) performed by non-residents (VAT) until January 1, 2021. They are eligible for tax benefits when (i) investors are involved in the implementation of “Business city” projects, including “Tashkent city” project and (ii) subcontractors implement “Business city” projects, including “Tashkent city” project, on EPC basis utilizing “fast-track” method. The Decree expands the existed list of entities enjoying VAT exemption and now, the exhaustive list comprises general contractor, general engineering organization, subcontractors, including foreign subcontractors, and investors

“Fast-track” method

EPC-projects (Engineering Procurement Construction) may be implemented through “fast-track” method since December 1, 2018. This method infers the creation of consortium3 of engineering and construction organizations (where each participant retains its separate legal status) that implements the project by simultaneous engineering, procurement and construction rather than splitting the named processes on subsequent steps. Consortium members share responsibility for the high standard and timely realization of projects. Shared responsibility allows creditors to claim all damages from any consortium member.

BIM technology

From July 1, 2019, the usage of BIM (Building Information Modeling) technology for all participants (customer, engineer, and general contractor/subcontractors) of the construction process will be obligatory. BIM is an intelligent 3D model-based process that gives architecture, engineering, and construction professionals the insight and tools to more efficiently plan, design, construct, and manage buildings and infrastructure.

Expert appraisal

Since December 1, 2018, the cost estimates for construction projects involving objects being built at the expense of direct investments or foreign direct investments are no longer subject to mandatory expert appraisal.

Current legislation provides for two types of examination: comprehensive examination and examination of town-planning documentation. Comprehensive one is a more complex examination and mandatory only in particular cases of investment and infrastructure projects, while examination of town-planning documentation is the essential part of all construction projects. The Decree alters the examination process in the part of cost estimates expert appraisal. Now, the source of funding becomes the main criterion when deciding whether to apply expert appraisal of the cost estimates. If the construction is financed by the state budget or through a legal entity that has a state shareholding (centralized investments), then expert appraisal of cost estimates is required. On the other hand, the presence of direct private or foreign direct investments excludes such a requirement.

The comprehensive examination is mandatory to projects financed by direct investments or foreign direct investments when:

  • the project is implemented on the basis of Presidential Decree of Uzbekistan that provides for certain tax benefits without the involvement of international financial institution or foreign state financial organization;
  • the project includes the extraction and/or processing of strategic minerals (precious, non-ferrous, rare and rare earth metals, hydrocarbons, coal, uranium).

As the legislation does not explicitly specify the type of examination that shall adopt altered requirements for cost estimates expert appraisal, the supplementary regulations may clarify this issue. If the new regulation extends the application of these changes to the comprehensive examination, the above-mentioned projects will not be obliged to apply expert appraisal for cost estimates.


Prior to the December 1, 2018, the commissioning procedure was exercised in two steps: firstly, by working committee and then, by the state committee that comprised of a number of representatives. Starting with changes, the two-stage procedure is now transformed into single-step and the number of participants in the state committee has been significantly reduced. Now, the following entities are the only participants of the state commissioning: construction verification inspection under the Ministry of Construction, cadaster authorities, the employer (customer) and general contractor.

The commissioning procedure of objects that are built at the expense of entities involved in public procurement is not subject to these changes.

From January 1, 2020, projects for residential objects must foresee the installation of energy-efficient and energy-saving equipment at the engineering (designing) stage. After the construction is complete and objects are equipped, an energy audit passport must be received prior to the commissioning. In order to acquire an energy audit passport, independent private company providing professional energy audit services must be hired. This requirement is not applied to the buildings certified by international BREEAM4 (Building Research Establishment Environmental Assessment Method) and LEED5 (The Leadership in Energy & Environmental Design) standards.

Delegation of Authority

From the beginning of 2019, some powers of the National Agency of Project Management (NAPM) have been transferred to other State authorities:

  • authority for regulating issues concerning the public procurement – to the Ministry of Finance;
  • authority for licensing the activities of the project organizations and for accreditation of individuals performing the examination of construction projects – to the Ministry of Construction;
  • authority for exercising state regulation of the valuation activities and standardization processes concerning property evaluation practice – to the State Competition Committee;
  • authority for implementing comprehensive type of examination – to the Ministry of Economy and Industry.

Further modification of legislation

The Decree also covers issues concerning modification of current norms and standards in the construction industry and stipulates that by 2028 the legislation will be fully changed and modified by the gradual adoption of the foreign experience. Starting from January 1, 2019, the Ministry of Construction initiates development and improvement of building regulatory and technical documents based on the foreign experience. The local and foreign legal entities together with public and international organizations are encouraged to participate in the above mentioned processes. All newly adopted legislation will be published on the official web-site of Uzstandard Agency, which will be responsible for making all construction standards, technical regulations and norms available for public access.


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