Dealing with Construction Permits in
Estonia
Listed below is detailed summary of the procedures, time and costs to build a warehouse —including obtaining necessary licenses and permits, completing required notifications and inspections and obtaining utility connections.
The information appearing on this page 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 183 economies. The most recent round of data collection for the project was completed in June 2011.
-
Building a warehouse
-
Estimated Warehouse Value:
EUR 664,988
- City: Tallinn
| No. |
Procedure |
Time to Complete |
Associated Costs |
| 1 |
Obtain design criteria from Municipal authority
The company must obtain the architectural and structural criteria for the construction from the local authority.
Agency: Municipality
|
30 days
|
no charge
|
| 2 |
Obtain project clearance from fire department
According to the Rescue Act of 1994, 10 days are required to obtain fire safety clearance for the building project from the national rescue service agency or a local government rescue service. However in practice it takes 30 days. If the building project does not conform to the fire safety rules then applicant has five workdays to eliminate deficiences from the project.
Agency: Fire Department
|
30 days
|
no charge
|
| * 3 |
Submit Environmental Impact Assessment
The Environmental Impact Assessment and Environmental Management System Act does not establish a term for submitting an environmental impact assessment report. Local municipality is the agency which decides whether it is necessary to assess the environmental impact of the project or not (if this is to be decided in the course of applying for a building permit, the matter of assessing the environmental impact of the project is decided in 20 days). The environmental impact of the project will also be assessed if a person wishes it to be assessed in the course of drawing up a construction project.
Agency: Environment Department
|
7 days
|
no charge
|
| * 4 |
Obtain project clearance from Environment Department
The Environmental Impact Assessment and Environmental Management System Act entered into effect on April 3, 2005, providing legal bases and procedures for assessing likely environmental impact, organization of eco-management and audit schemes, and the legal bases for awarding eco-labels to prevent environmental damage.
The environmental impact shall be assessed upon application for, or application for amendment of, a development consent (a building permit or a permit for the building use), if the proposed activity, which is the basis for the application for, or the amendment of, the development consent, potentially results in significant environmental impact. The impact shall also be assessed if activities are proposed that alone or in conjunction with other activities may potentially significantly affect a Natura 2000 site. A person who proposes an activity and intends to carry it out shall organize an environmental impact assessment and carry all the resulting expenses.
It is up to the local municipality to decide whether it is at all necessary to assess the environmental impact of the project. There are two types of grounds for requiring an environmental impact assessment to be carried out. First of all there are instances in which it is obligatory to conduct environmental impact assessment. The hypothetical warehouse project should not qualify under this category. The second category is such that the local municipality is required to consider whether an environmental impact assessment is needed or not and if the local municipality decides that it is necessary, it must give reasons for such a decision. The hypothetical warehouse project might qualify under this category if for example considered to be (a part of) an industrial area development. Besides the fact that it is in hands of municipality to make a decision, there are no clear definitions on what does not exactly fall into category of projects that do not qualify for Environmental Impact Assessment (EIA). It is likely BuildCo would need to obtain a clearance but not the full scale EIA approval.
The Environmental Impact Assessment and Environmental Management System Act established a term of 30 days for issuing a decision to approve the environmental impact assessment report. The time may vary from 30 days to 1 year for actual EIA approval both from Municipality and Environmental Supervisory Authority. It would also include a period of public hearing. However, that we are just getting a project clearance and our case is simple the procedure should be completed within 30 days.
Agency: Environment Department
|
29 days
|
no charge
|
| * 5 |
Obtain project clearance from health care department
A clearance for the building project from the Health Board is not required. However, this authority may be consulted by the local government before granting or refusing the building permit. In practice, the local government may ask the applicant to personally communicate with these authorities. There is no time limit for such communication. Further, Health Board has the right to perform state supervision over compliance with occupational health requirements when the warehouse is put into use.
Agency: Health Board
|
28 days
|
no charge
|
| * 6 |
Obtain project clearance from labor inspections department
A clearance for the building project from the labor inspections department is not required by law in the stage prior to approval of building permit. However, this authority may be consulted by the local government before granting or refusing the building permit. In practice, the local government may ask the applicant to personally communicate with these authorities. Labor Inspectorate has the right to perform state supervision over compliance with occupational safety requirements during construction and when the warehouse is put into use. According to Occupational Health and Safety Act paragraph 13 lg 1 p 17 employer is obliged to notify local department of Labor Inspectorate in written form or in a format, which can be reproduced in writing before commencing activities. Paragraph 26 lg 3 p 3 provides that after receiving of the notification inspector has the obligation to carry out the inspection. Employee of the Labor Inspectorate ordinarily has to accord the time of inspection with the owner of the building, but in extraordinary situations inspector has the right to commence supervision without informing in advance.
Agency: Labor Inspections Department
|
27 days
|
no charge
|
| 7 |
Obtain building permit
To obtain a building permit from the municipal authority, the company must submit an application for a construction permit and construction design documentation. According to the Building Act, the local government must approve or refuse the issuance of a building permit within 20 days from the date on which the application for the building permit and the building design documentation are submitted. Municipality conducts internal consultations with various departments and agencies. However in practice BuildCo is likely to follow up with these authorities. In practice this increases the timeline since the Municipality starts counting only after all the clearances have been completed.
Since June 2009, an energy certificate for the new building must be included in the application. The energy audit is assumed to be conducted by the engineers of the newly built warehouse.
Prior construction, the builder has to notify the Municipality that the the construction will begin.
Agency: Municipality
|
25 days
|
** EUR 543
|
| 8 |
Receive on-site inspection by municipal authority
During construction, the municipal authority may monitor work to check compliance with requirements. If the work is noncompliant, construction will be stopped.
Agency: Municipality
|
1 day
|
no charge
|
| 9 |
Receive on-site inspection by Estonian Technical Surveyllance Authority
According to the amendment of Building Act from 01.01.2008 Estonian Technical Surveillance Authority may carry out state surveillance on construction sites in addition to the surveillance exercised by municipal authority. Before the building is taken into use or in case of emergency in the building already in use Estonian Technical Surveillance Authority does not have to inform the owner about inspection beforehand. In other situations owner has to be notified at least 24 hours in advance.
The number of inspections is not limited by law – it is in the discretion of the Technical Surveillance Authority, however it should comply with the principles of good administration practices. The costs of the evaluation services, of the expert assessment of building design documentation and of the evaluation of construction works ordered to verify conformity to the requirements are borne by the Technical Surveillance Authority. If it is established that the construction works or building design documentation does not conform to the requirements established thereof the owner of the construction works has compensate the Technical Surveillance Authority for the costs of the evaluation services ordered to verify conformity to the requirements, including the costs of expert assessment or evaluation.
Agency: Technical Surveyllance Authority
|
1 day
|
no charge
|
| 10 |
Apply for permit of use and request final inspection from municipal authority
The local municipality has a discretion on which agencies can be engaged in the inspection before the permit to use the building is issued. According to the law the local municipality issues or refuses to issue a permit to use within twenty days as of the date on which the last document necessary for the issue of the permit is submitted. However in practice it takes longer. BuildCo would have the right to file an action to the administrative court in case 20 days are not maintained. In practice, though few companies file lawsuits against the authorities.
Agency: Municipality
|
25 days
|
** EUR 64
|
| * 11 |
Receive final inspection from municipal authority
The date and the time of the final inspection is agreed between the builder and the municipal authority. The permit for use is not issued before the final inspection is carried out.
Agency: Municipality
|
1 day
|
no charge
|
| 12 |
Obtain sewerage and water connection
The water and sewage connection is to be obtained from AS Tallina Vesi.
Agency: AS Tallina Vesi
|
20 days
|
** EUR 1,118
|
| 13 |
Obtain telephone connection
ELION ( Elion Ettevotted AS) is the largest telecommunication and IT service provider in Estonia, who provides telephone connection. If company subscribes also to the internet connection no affiliation fee shall be required. ELION has to issue technical conditions for establishing telephone connection.
Agency: ELION ( Elion Ettevotted AS)
|
15 days
|
** EUR 97
|
* Takes place simultaneously with another procedure.
** For dealing with construction permit, the data point on cost was corrected. Rankings are adjusted once a year with each published report.