Dealing with Construction Permits in Bosnia and Herzegovina

The table below summarizes the procedures, time, and costs to build a warehouse in Bosnia and Herzegovina.

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Building a warehouse

Data as of: January 2009
Estimated Warehouse Value: BAM 1,013,350
City: Sarajevo

Requirement Details

Procedure 1.
Obtain excerpt from the cadastre plan showing status of the land plot
Time to complete:
1 day
Cost to complete:
BAM 15
Name of Agency:
Municipality
Comment:
To obtain a copy of the cadastre plan, BuildCo must submit a request on a form available at the municipality. Due to internal reorganization and automatization of the process in cadastre office of Municipality the process can be completed in 1 day.
Procedure 2.
Obtain excerpt from the land registry book showing proper registration
Time to complete:
1 day
Cost to complete:
BAM 4
Name of Agency:
Municipal Court (Land Registry Department)
Comment:
The excerpt is available from the Land Registry Department of the Municipal Court. The company representative must take a queue number at the office counter in the morning and make a written or oral request. The excerpt will be provided on the same day (usually within 1 hour).
Procedure 3.
Obtain urban planning consent from the municipality (urban planning department)
Time to complete:
30 days
Cost to complete:
BAM 30
Name of Agency:
Municipality (Urban Planning Department)
Comment:
BuildCo submits a request to the municipality for an urban planning consent with the following required documents:
- Reason for the request, including the project data and documentation required for the Urban Planning Department’s assessment.
- Program sketch.
- Preliminary (or first draft) project design, two examples (or depending on the level of construction complexity, project proposal or program sketch).
- General schemes for power installations, heating installations, fire prevention and security systems, water supply and sewage systems.
- Excerpt from the cadastre plan, showing right to build and ownership of plot (not older than 6 months).
- Excerpt from the land registry book, showing proper registration.
- Environmental consent, if requested.
- Other data, if requested.
- For insurance purposes, consent for fire and explosion protection, issued by a competent company.
- Consent for the heating installations, issued by a competent company

Once issued, the urban planning consent is effective for a year, during which time BuildCo may submit a construction permit request.

UNDP training and governmental administrative reform has reduced the time required.
Procedure 4.
Obtain preliminary verification of the heating and electricity installations
Time to complete:
29 days
Cost to complete:
BAM 88
Name of Agency:
Elektroprivreda Bosnia and Herzegovina
Comment:
BuildCo must submit to the municipal electricity provider (Elektroprivreda) the description of the main project plan, which consists of
- Book 1, Architecture Project: Contains a site plan (scale: 1:200), all special features, at least two detailed characteristic cross-sectional plans, the façade (scale: 1:50O), characteristic design details (scale: 1:10), carpentry and locksmith plans, and technical description and premeasurements.
- Book 2, Building Project. Contains all cost estimates, a technical description and report, as well as a description of all phases of construction, including:
-- Electrical installations (IT, lightning rod) and fire prevention technology and video surveillance with premeasurements and technical descriptions.
-- Heating installations (including premeasurements and technical descriptions).
-- Water supply and sewage system installations (including premeasurements and technical descriptions).
-- Information on the geotechnical and civil engineering aspects of the project.
-- Study on waste management and environment protection (if business activities impact the environment), if required.
-- Study on fire and explosion prevention.
Procedure 5.
Obtain preliminary verification of water supply and sewage system projects
Time to complete:
28 days
Cost to complete:
BAM 117
Name of Agency:
Vodovod i Kanalizacije
Comment:
BuildCo must submit the description of the main project plan to the municipal water and sewage authority (Vodovod i Kanalizacija).
Procedure 6.
Obtain preliminary verification of study on fire and explosion prevention
Time to complete:
4 days
Cost to complete:
BAM 150
Name of Agency:
Institute for Fire Protection
Comment:
BuildCo must submit electronically the description of the main project plan to the Public Institute for Fire Protection, an independent agency.
Procedure 7.
Obtain validation of the technical audit of the main project
Time to complete:
5 days
Cost to complete:
BAM 28,180
Name of Agency:
Auditing Entity
Comment:
BuildCo must undergo a technical audit, showing that the project was designed in compliance with the urban permit and the provisions of the Law on Spatial Planning. The auditing entity must have at least one engineer who passed the state exam and has 5 years of experience. The signature of an authorized auditor is required to confirm that the project has been revised in its entirety. The total fee for technical audits varies across municipalities, according to municipal decisions on the fee schedule for the technical audit of construction. The above-stated fee applies to the Sarajevo municipality.
Procedure 8.
Apply for Building permit with the municipality
Time to complete:
30 days
Cost to complete:
no charge
Name of Agency:
Municipality
Comment:
The company must submit a request to the Department for Spatial Planning, Urbanism and Communal Matters with the following documents:
- Valid urban planning consent.
- Cadastre excerpt: land plot and proof of right to build.
- Proof of payment for purchase of the construction land.
- Proof of rent payments for the paid rent compensation.
- Consents obtained during the issuing of the urban planning permit.
- Consent for stated building; any other enclosures as requested by the authorities.
- Verified development project (two copies) and consents for the project documentations (Project Books 1 and 2, including the preliminary verifications applied for in Procedures 4 to 7).

There is no fee associated with the application.
Procedure 9.
Request marking out of the land plot
Time to complete:
7 days
Cost to complete:
BAM 15
Name of Agency:
Municipality (Construction Department)
Comment:
The request for marking out the land plot must be submitted to the municipal construction department with the construction permit and the urban planning consent. The municipal authorities mark out the land plot. The request fee depends on the yearly municipal pricing decisions and on the on-site assessment. An average price is BAM 10.
Procedure 10.
Notify the municipality about the commencement of works
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Municipality (Urban- Construction Inspection Department)
Comment:
BuildCo must notify the municipal construction department of the start of construction no later than 8 days before work begins.
Procedure 11.
Request telephone line connection
Time to complete:
13 days
Cost to complete:
BAM 60
Name of Agency:
BH Telecom
Comment:
BuildCo must contact the BH Telecom to obtain a phone line connection. The request should include the preliminary verification of the phone installation and Project Books 1 and 2. BH Telecom reduced its connection fee to Bam 70.20 to make the service more competitive.
Procedure 12.
Request water and sewage connection
Time to complete:
30 days
Cost to complete:
BAM 500
Name of Agency:
Vodovod i Kanalizacije
Comment:
BuildCo must contact the municipal water and sewage authority (Vodovod i Kanalizacije) to obtain water and sewage connection. The request should include the preliminary verification and Project Books 1 and 2.
Procedure 13.
Request electricity connection
Time to complete:
30 days
Cost to complete:
BAM 750
Name of Agency:
Elektroprivreda Bosnia and Herzegovina
Comment:
BuildCo must contact the municipal electricity provider (Elektroprivreda) to obtain an electrical connection. The request should include the proof of property ownership, the construction permit, and other data, as requested. Cost of connection to electricity is: application fee and inspection fee is BAM 750.
Procedure 14.
Request issuance of the building permit usage
Time to complete:
30 days
Cost to complete:
BAM 7,804
Name of Agency:
Municipality (Construction Department)
Comment:
After the technical review of completed construction, BuildCo must submit a request for the building usage permit, including the following documents:
- Building permit (copy).
- Cadastre plan (copy), including an exact plan of the marked final building position.
- Written statements from each contractor, stating the work has been properly performed according to the project design and future maintenance plans.
- A written report (by the construction supervisor) that all materials were of standard quality (certified as such by the suppliers).

BuildCo submits these documents to the construction department of the relevant municipality (the same municipal department that issued the building permit). The building usage permit is issued upon completion of technical inspection. It is only after the issuance of such permit that the building may be used.
Procedure 15.
Receive technical inspection
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Municipality (Construction Department)
Comment:
The relevant municipal department that issued the building permit performs the technical inspection within 15 days of receiving a duly submitted request for a building usage permit.

The relevant municipal department must appoint an independent professional inspection board for a technical inspection within 8 days of receiving the duly submitted request for issuance of a building usage permit. The number of board members appointed depends on the type and the complexity of the building; the board will consist of one professional for each type of construction work to be inspected (architectural/engineering, electrical, mechanical, water and sewage system, and so forth).

The relevant municipal department must notify BuildCo and the members of the inspection board about the date and time of the inspection. This must occur no later than 10 days before the scheduled inspection.

No later than on the inspection date, the company must present the following documentation to the board:
- Excerpt from the Commercial Court Register, showing the company is duly registered.
- Details of the project manager for each work phase (if the project is not complex, then one manager may be appointed for the entire project).
- Construction permit and a copy of project Books 1 and 2.
- Performance reports, verified by the designer of the main project plan, to validate compliance with the main project plan, as well as terms and conditions specified in the building permit.
- The construction diary maintained by the company.
- The construction book, a document containing the company-verified quantity of work, in compliance with the main project plan.
- Proof of testing and quality of materials and equipment received from suppliers at the time of purchase.
- The construction mark-out plan and minutes on the performed mark out. This procedure entails transferring the dimensions of the future construction from the plans to the site and marking the edges of the construction surface. The construction mark out is performed by the person (physical or legal) registered to perform geodetic activities.
- The project of the construction-site organization.
- The decision on the appointed engineers and the supervisors.
- Building permit (copy).
- Cadastre plan, including the building position.
- Written statements, from each contractor, that the work has been properly performed according to the project design and future maintenance plans.
- A report written by the construction supervisor that contains the following data: confirmation that the work layout complies with the construction mark-out plans submitted in the main project plan (Book 1 and Book 2); that the construction work is carried out according to the building permit, technical documentation, and applicable laws; that the quality of the work, equipment, and installed products comply with the project requirements; that all materials used were of standard quality (certified as such by the suppliers); that construction was performed regularly as evidenced by the signing of the construction diary, control of the construction book, and any change to the technical documentation.
- Proof that any special condition in the urban planning consent has been fulfilled.
- Project plan of the executed activities if additional construction work was done and not included in the main or design project plan verified by the competent body.

After drawing up a protocol, signed by the president and each board member, the board must forward the signed protocol to the relevant municipal department within 8 days of performing the site inspection. Even if the authorized representatives were not present at the inspection or have not forwarded the written report within this time frame, the building usage permit will be issued.

However, if the technical inspection board’s protocol states that the building is defective and that the defective parts need to be removed, the municipality will set a deadline of up to 90 days to remedy defects.
Once the defects have been removed to the municipality’s satisfaction, the permit for construction use will be issued.

If the technical inspection board’s protocol states that a building usage permit can be issued, the construction department of the relevant municipality must issue the usage permit within 10 days from the day of receiving the protocol on the technical inspection.

If a building usage permit has not been issued for a particular building, that building cannot be registered in the Land Registry Books at the Municipal Court.
Procedure 16.
Register the building into cadastre book
Time to complete:
89 days
Cost to complete:
BAM 180
Name of Agency:
Cadastre (Municipality)
Comment:
Registration of the building in cadastre books can last anywhere between 15 days up to 30 days due to administrative reforms inside the cadastre office. But the procedure is not nearly as lengthy as was before when it would take on average 6 months to 1 year. Documents that need to be submitted are: application sheet available from the municipality, copy of the cadastre plan; construction permit; and excerpt from the regulation plan.

After the cadastre registry the applicant needs to register the ownership status of the newly finished warehouse. The procedure until this year took on average anywhere between 6 months to 1 year. Administrative reforms under broader land reform registry have made it possible to obtain the registry in 2 months.