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Dealing with Construction Permits in

Czech Republic

Below is a detailed summary of the procedures, time and costs to build a warehouse in Czech Republic. This includes obtaining necessary licenses and permits, completing required notifications and inspections and obtaining utility connections.

This information was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 190 economies. The most recent round of data collection was completed in June 2016. Read the methodology.

Compare Czech Republic to 189 other economies.

  • Measure of efficiency
    No. Procedure Time to Complete Associated Costs
    1

    Hold a preliminary meeting with the Environmental Department

    Agency: Environmental Department (Municipality of Prague)

    The Environmental Department encourages builders to meet with them before notifying them of the project. The department will provide them with all relevant information on how to complete the form and the type of information to be provided. This preliminary meeting has been implemented to reduce the back and forth between this department and the builders due to lack of information.

    1 day no charge
    2

    Obtain project clearance from Hygienic Authority in the Municipality of Prague

    Agency: Municipality of Prague (Hygienic Department)

    The Hygienic Authority clearance is based on the preliminary project design drawings. This is mostly to assess the impact that noise and the construction itself can have on pubic health, if any.

    30 days no charge
    * 3

    Obtain project clearance from local provider of water and sewerage services

    Agency: Prazske Vodovody a Kanalizace, a.s.

    The water and sewerage provider clearance is based on the preliminary project design drawings.

    30 days no charge
    * 4

    Obtain project clearance from local electricity provider

    Agency: ČEZ a.s.

    The local electricity provider clearance is based on the preliminary project design drawings.

    20 days no charge
    * 5

    Obtain consent of the project from the Environmental Department of the Municipality

    Agency: Municipality of Prague (Environmental Department )

    The builder informs the Environmental Department that the project is a sub-limit construction by completing a specific form, which can be obtained online. This form can range from 1 to 60 pages, depending on the size of the project. The Doing Business case study is considered low risk and a small project. The department will assess the impact of this sub-limit construction and decide whether the request should be granted or not. It is not automatic that all sub-limit constructions do not require a full Environmental Impact Assessment.

    This notification will be sent to several departments (pollution, waste, arable land/forest if applicable) to make sure that this project will not have a negative impact on the environment.

    The statutory time limit is 15 days, but in reality the average time is around 30 days. By law, construction under 6000 sq.m. is considered sub-limit (Environmental Impact Assessment Act 100/2001). This is also a harmonization of the EU regulations.

    30 days no charge
    * 6

    Obtain project clearance from Road Management Agency

    Agency: Municipality of Prague (Road Management Agency)

    This clearance is based on drawings from the preliminary project design.
    This procedure is required by law – it is for safety reasons. The Road and Management Agency will check that the builder is respecting all the requirements when connecting to the public road and will verify if the project will have an impact on traffic. Even if it is just a small connection to the public road, BuildCo will still require the clearance.

    The statutory time limit for completing this procedure is 30 days. The fee for obtaining a decision to connect the site to a first-class road is CZK 1,000.00. The fee for obtaining a decision to connect the site to a second- and third-class road or to a local road is CZK 500.00.

    20 days CZK 500
    * 7

    Obtain project clearance from Fire Department

    Agency: Fire Department

    The Fire Department clearance is based on preliminary project design drawings. The statutory time limit for completing this procedure is 30 days.

    10 days no charge
    8

    Obtain zoning permit

    Agency: District Authority

    A zoning permit grants only the right to build the warehouse on a plot; it does not authorize construction. In order to obtain the location permit, BuildCo must submit the clearances of the preliminary project design by the various agencies.

    The zoning permit is valid for 2 years, and it is a prerequisite for construction and building permits. The statutory period for completing the procedure is 60 days. In particular, the District authority should take a maximum of 30 days to assess all the clearances and provide an opinion. Then there is a statutory time limit of 15 days for the participants to receive the opinion from the District authority. Since it is a registered mailed, if the person does not pick it up immediately at the post office , it will be considered received after 15 days, whether or not the person has the letter physically in their hands. Then, the participants ( such as the neighbors) have another 15 days time-limit to appeal this zoning opinion. If no appeal is received within these 15 days, then the zoning permit is considered final and indisputable. However, in more complicated cases that require oral proceedings or local investigations, the statutory period for completing the procedure is 90 days.
    The zoning permit must be issued for simple structures, installations, and maintenance. However, if a regulatory plan (a more specific document than the master plan) is issued for the area (location), this plan replaces the zoning permit within that area. The regulatory plan is procured and issued by the Local Authority. It determines the detailed conditions for the use of the grounds, for the location and spatial arrangement of structures, for the protection of area’s values and character, and for creating a favorable environment.

    60 days CZK 20,000
    9

    Obtain technical conditions from Hygiene Authority of the Municipality of Prague

    Agency: Municipality of Prague (Hygienic Department)

    Technical conditions are based on project design drawings made by an authorized designer.

    30 days no charge
    * 10

    Obtain technical conditions from Road Management Agency of the Municipality of Prague

    Agency: Municipality of Prague (Road Management Agency)

    Technical conditions are based on project design drawings made by an authorized designer.

    30 days no charge
    * 11

    Obtain technical conditions from local provider of water and sewerage services of the local service provider

    Agency: Prazske Vodovody a Kanalizace, a.s.

    Technical conditions are based on project design drawings made by an authorized designer. There is no statutory period for completion of the procedure. However, the service providers usually complete the procedure in 30 days.

    30 days no charge
    * 12

    Obtain technical conditions from Fire Department

    Agency: Fire Department

    Technical conditions are based on project design drawings made by an authorized designer. The statutory period for completing the procedure is 30 days (Act. No. 500/2004 Coll., Code of Administrative Procedure, and Act No. 183/2006 Coll., Building Act). In practice, it usually takes one week longer than what the law prescribes.

    20 days no charge
    * 13

    Obtain technical conditions from local electricity provider

    Agency: Prazska Energetika, a.s.

    Technical conditions are based on project design drawings made by an authorized designer.
    The statutory time limit is 30 days, but in practice it can be done within 20 days.

    20 days no charge
    14

    Obtain building permit

    Agency: District Construction Authority

    The company must submit to the municipal authority the documents specified in the preceding procedures, project design drawings made by an authorized designer, and additional documents requested by the building authority. The building permit is valid for 2 years. Under the new Building Act (2006), the land planning and the building permit applications can now be submitted simultaneously. Under the new code, the investor may apply for both the land planning permit and the building permit applications, simultaneously, on condition that the regulatory plan for the area was approved. The regulatory plan is procured and issued by the local authority and determines the detailed conditions for the use of the grounds, for the structural location and spatial arrangement, for protection of the area’s values and character, and for creating a favorable environment.

    Most local authorities in the Prague area have already approved a regulatory plan. Thus, in practice, the planning and building permit applications can now be submitted simultaneously.

    As stated in the Czech Building Act (No. 183/2006, Coll. Section 78), pursuant to the rules of administrative procedure, the building office may merge the planning permission proceedings with the building permit proceedings, if the conditions within the area are clear, especially if there is an approved regulatory plan for the area.

    The building permit application must include, in triplicate :
    • Documents proving the right of ownership
    • Design drawings and an accompanying technical summary report, and situation of the building
    • Construction schedule for inspections
    • An estimate of the cost of the building
    • Any binding opinion or decisions by the authorities or other documents required by specific legislation
    • The opinion of the owners of public transport and technical infrastructure of the possible methods of connection, or the conditions of the trade and safety zones

    37 days CZK 10,000
    15

    Request private geodesic to survey the land after building is constructed

    Agency: Authorized Geodesist

    An authorized engineer/geodesist will survey the land and draw a new map showing the building and its position on the land.

    30 days CZK 15,000
    * 16

    Request final inspection and occupancy permit

    Agency: The District Building Authority

    To obtain the occupancy permit the builder provides the authorities with the design sketches, as well as the binding opinion of the authorities as required by specific legislation. The final inspection will be scheduled within 15 days of the application.

    Under the Building Act (No. 183/2006 Coll.), effective January 1, 2007, certain buildings that are not used by the public can be used on the basis of a simple occupancy notification, indicating that the investor intends to start occupying it, 30 days in advance. Since the warehouse is used for industry, however, the occupancy permit would likely be required.

    1 day no charge
    17

    Receive final inspection from the Special Commission of the District Authority

    Agency: The District Building Authority

    This is a joint inspection done with all the participants: hygiene, fire, sewerage/water, road management. The district will organize this final inspection.

    1 day no charge
    18

    Receive occupancy permit

    Agency: The District Building Authority

    Consent is issued on the basis of final inspection during which the building authority examines whether the building was carried out in accordance with the decisions issued by the planning and building permit documentation, in accordance with the decisions of relevant authorities and whether the general requirements for the construction were complied.

    15 days no charge
    19

    Request and obtain evidence number of the building from Municipality

    Agency: Municipality of Prague

    Before registration with the Real Estate Registry the owner of the building shall apply for the evidence number of the building with the Municipality Office. The following documents need to be submitted along with the application: occupancy or building permit, geometrical plan (i.e. document on the building’s location according to which the building is to be newly registered in the Real Estate Registry), and the evidence on the ownership of the building. According to the law the document must be issued in 30 days; however in practice it takes 1 week on average.

    7 days no charge
    20

    Register the building with the Real Estate Registry

    Agency: Real Estate Registry

    BuildCo must apply to register the building and obtain a building identification number with the Real Estate Registry. This procedure is necessary, among other conditions, if the building needs insurance, as would be the case for a new warehouse. The owner of the new warehouse will submit a notification explaining that the building is now part of the plot and should be registered. The owner will submit the geodesic plan as well as the occupancy permit to register the building in the cadaster. This notification can be done online and there is no fees to register the building.

    Under Act No. 500/2004 Coll. Code of Administrative Procedures, statutory time limits of 30 days have been introduced (60 days for complicated cases).

    Under Act No. 256/2013 Coll., Cadastral Act effective January 1, 2014 the building is now registered as part of the land, and not as a separate asset.

    30 days no charge
    * 21

    Request and receive water and sewerage connection with "Prazske Vodovody a Kanalizace"

    Agency: Prazske Vodovody a Kanalizace, a.s.

    The request is made to the local water and sewerage provider. The costs for establishing a (completely new) water connection is about CZK 2,500.00 – CZK 3,000.00 per sq. m. for the excavation works (depending on the surface material), plus the cost of the actual placing of the new water conduct and coverage of the hole, (together, about CZK 4,500.00 per sq. m.). The costs of establishing a new sewerage connection are based on the same criteria, and they can vary substantially, based on the relevant circumstances (surface material, depth). The costs for establishing the new water connection depends on the time and the number of workers needed. The price is about CZK 2,200.00 plus VAT (21%), calculated on an hourly basis for two workers. It is assumed this would take 5 -- 6 hours.

    For the excavation work, a company is responsible for being in contractual relation with the Prague Water Supply and Sewerage Company (Prazske vodovody a kanalizace). The fee for the water and sewerage connection varies, by service provider. However, the approximate cost is about CZK 1,200.00. The cost stated above probably includes the cost for constructing the water and sewerage connection. However, when constructing a warehouse, the constructor also builds a water and sewerage connection.

    30 days CZK 5,500

    * Takes place simultaneously with previous procedure.

  • Measure of quality
    Answer Score
    Building quality control index (0-15) 12.0
    Quality of building regulations index (0-2) 1.0
    How accessible are building laws and regulations in your economy? (0-1) Available online; Free of charge. 1.0
    Which requirements for obtaining a building permit are clearly specified in the building regulations or on any accessible website, brochure or pamphlet? (0-1) List of required documents; Required preapprovals. 0.0
    Quality control before construction index (0-1) 1.0
    Which third-party entities are required by law to verify that the building plans are in compliance with existing building regulations? (0-1) Licensed architect; Licensed engineer. 1.0
    Quality control during construction index (0-3) 2.0
    What types of inspections (if any) are required by law to be carried out during construction? (0-2) Inspections by in-house engineer. 1.0
    Do legally mandated inspections occur in practice during construction? (0-1) Mandatory inspections are always done in practice. 1.0
    Quality control after construction index (0-3) 3.0
    Is there a final inspection required by law to verify that the building was built in accordance with the approved plans and regulations? (0-2) Yes, final inspection is done by government agency. 2.0
    Do legally mandated final inspections occur in practice? (0-1) Final inspection always occurs in practice. 1.0
    Liability and insurance regimes index (0-2) 1.0
    Which parties (if any) are held liable by law for structural flaws or problems in the building once it is in use (Latent Defect Liability or Decennial Liability)? (0-1)  Architect or engineer; Professional in charge of the supervision; Construction company; Owner or investor. 1.0
    Which parties (if any) are required by law to obtain an insurance policy to cover possible structural flaws or problems in the building once it is in use (Latent Defect Liability Insurance or Decennial Insurance)? (0-1) No party is required by law to obtain insurance . 0.0
    Professional certifications index (0-4) 4.0
    What are the qualification requirements for the professional responsible for verifying that the architectural plans or drawings are in compliance with existing building regulations? (0-2) Minimum number of years of experience; University degree in architecture or engineering; Being a registered architect or engineer; Passing a certification exam. 2.0
    What are the qualification requirements for the professional who supervises the construction on the ground? (0-2) Minimum number of years of experience; University degree in engineering, construction or construction management; Being a registered architect or engineer; Passing a certification exam. 2.0