Dealing with Construction Permits in
Ukraine
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.
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Building a warehouse
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Estimated Warehouse Value:
UAH 9,582,356
- City: Kiev
| No. |
Procedure |
Time to Complete |
Associated Costs |
| 1 |
Hire a Private Design Institute to develop a pre-project city planning justification
The contents and scope of the pre-project city-planning justification must be prepared according to the State Construction Regulations (ДБН Б.1.1.-4-2002). The justification is prepared by a private and independent organization licensed for such an activity. The private firm can be chosen by the applicant.
In accordance with provision of Law No. 509-VI, effective as of 15 April 2009, customers should obtain pre-project city planning justification only if there are no local rules of building up the area or if customers’ intentions to build new construction are not corresponded with existing local rules of building up (Rules of Construction in City of Kyiv, approved by the Decision of Kyiv City Council, dated 27 January 2005, No. 11/2587). However, due to early stages of reforms all companies must obtain this pre-project city planning justification.
According to provision of Law No. 509-VI, the pre-project city-planning justification is to be approved only by the following authorities:
- the state authority of city-planning and architecture (the Chief Department of Town-Planning, Architecture and Urban Environment Design of the Kyiv City State Administration),
- the state authority of land resources (the Chief Department of Land Resources of the Kyiv City State Administration (Kyivzem),
- the state authority of cultural heritage protection (the Chief Department of Cultural Heritage Protection of the Kyiv City State Administration),
- the state nature conservation authority (the Department of Natural Resources Protection of the Kyiv City State Administration),
- the state sanitary and epidemiological authority (the Kyiv City Sanitary and Epidemiological Inspection)
The cost of the pre-project justification may vary from one company to another, but ranges from USD 4 and USD 10. Assuming an average price, the total cost would be: USD 7 x 1,300.6 sq. m. = USD 9,104.2.
Agency: Private Design Institute
|
1 day
|
USD 9,104
|
| 2 |
Request and obtain certificate of approval from the Kiev Center of City Planning and Architecture
The Kiev Center of City Planning and Architecture provides its conclusions on the pre-project city-planning justification in connection with the requirements showing the expected parameters of the warehouse, general plan, cost estimates, and legal justification.
Agency: Center of City Planning and Architecture
|
30 days
|
no charge
|
| 3 |
Request and obtain architectural and technical objectives/ conditions from the Chief Department of Town-Planning, Architecture and Urban Environment Design of the Kiev City State Administration
The architectural and technical objectives/conditions are part of the input data needed for designing the project.
The maximum official cost for obtaining of the architectural-planning task should be calculated as: UAH 237.4 x 7.01= UAH 1664.17.
Resolution 489 of the Cabinet of Ministers "On Approval of the Procedure for Issuance of the Benchmark Data for the Designing of TownPlanning Objects"
dated 20 May 2009 develops provisions of Law of Ukraine No. 509-VI dated 16 September 2008. Under Regulation No. 489, the benchmark data include: (a) city
planning conditions; (b) technical conditions; and (c) design assignment.
The city planning conditions and restrictions are based on the respective city development rules (Rules of Development of Kiev City). These should not interfere with the engineering and architectural solutions of the project, unless only required by the need to protect the existing architectural, historical or cultural environment. The form of the city planning conditions and restrictions has been approved by the same Regulation No. 489. In order to obtain the city planning
conditions and restrictions, BuildCo should submit to the Main Deparment of the City-Planning, Architecture and Urban Environment Design of the Kiev City State Administration the application together with the notarized copies of its foundation documents and of the documents confirming its land title as well as predesign documents, if any. The documents are checked for compliance with the city development rules (Rules of Development of Kiev City) within 10 days upon receipt of the documents. In case of the positive outcome of such compliance check, the city planning conditions and restrictions are issued to the developer (BuildCo) within a two-week. If, however, the outcome is negative, the respective conclusion and recommendations on elimination on incompliance is issued within a one-month term. If the developer's intention to construct the property does not comply with the city planning documentation, it can initiate the proceeding for the amendment of such documentation by filing a respective application with the Main Deparment of the City-Planning, Architecture and Urban Environment Design of the Kiev City State Administration which decides on the matter within 2 weeks in coordination with the relevant bodies (land resources, environmental and cultural protection authorities, sanitary and epidemiological stations) and submits its respective proposals to the Kiev City Council for the final approval. The implementation of the relevant practice of issuing city planning conditions and restrictions to developers has already started in Kiev. Upon obtaining of the city planning conditions and restrictions, the developer should apply for the technical conditions.
These include the data on engineering and utilitity servicing of the to-beconstructed property (the warehouse), including the sources of supply, connection points as well as the basic engineering parameters of the property.
The city planning conditions and restrictions as well as the technical conditions are valid until completion of construction, but for the term not less than 2 and not longer than 5 years and they can be extended at the request of the developer. The design assignment should comply with the city planning conditions and terms and refine the benchmark for design, with account for the specific features of the project. The design assignment is developed and approved by the developer and is provided to the general designer for the project.
Agency: Chief Department of Town-Planning, Architecture and Urban Environment Design of the Kiev City State Administration
|
30 days
|
UAH 1,664
|
| * 4 |
Request and obtain technical terms and conditions from the sewage authority
The application must include the plan, information on the expected volume of sewerage system use, and basic characteristics of the building.
Regulation 489 does not include any official fee. An unofficial fee estimated to UAH 2895 might be paid by BuildCo. A new regulation with a fee schedule might be passed in the coming future.
Agency: Kyivvodokanal Joint Stock Company
|
15 days
|
UAH 2,895
|
| * 5 |
Request and obtain technical terms and conditions from the water supply authority
The application must include the plan, information on the expected volume of water use, and basic characteristics of the building.
Regulation 489 does not include any official fee. An unofficial fee estimated to UAH 2895 might be paid by BuildCo. A new regulation with a fee schedule might be passed in the coming future.
Agency: Kyivvodokanal Joint Stock Company
|
15 days
|
no charge
|
| * 6 |
Request and obtain technical terms and conditions from the electricity distribution authority
The application must include the plan, information on the expected rate of electricity consumption, and basic characteristics of the building.
Regulation 489 does not include any official fee. An unofficial fee estimated between UAH 500 and UAH 957 might be paid by BuildCo. A new regulation with a fee schedule might be passed in the coming future.
|
15 days
|
UAH 700
|
| * 7 |
Request and obtain technical terms and conditions from the fixed telephone line provider
The application must include the plan, information on the expected level of telephone service, and basic characteristics of the building.
Regulation 489 does not include any official fee. An unofficial fee estimated to UAH 697 might be paid by BuildCo. A new regulation with a fee schedule might be passed in the coming future.
Agency: Ukrainian State Telecommunications Corporation (Ukrtelecom)
|
15 days
|
UAH 700
|
| * 8 |
Request and obtain technical terms and conditions from the Fire Safety Department
Project drawings are verified against the fire safety requirements.
Regulation 489 does not include any official fee. A new regulation with a fee schedule has to be developed by the Fire Safety Department
Agency: Fire Safe Department
|
15 days
|
no charge
|
| * 9 |
Request and obtain technical terms and conditions from the Department of State Auto Inspection, Main Office of the Ministry of Interior Affairs of Ukraine in Kiev City
The Department of State Auto Inspection at the Main Office of the Ministry of Interior Affairs of Ukraine in Kiev City compares the general plan of the building with the traffic safety requirements.
Regulation 489 does not include any official fee. A new fee schedule has to be developed.
Agency: Department of State Auto Inspection, Main Office of the Ministry of Interior Affairs of Ukraine in Kiev City
|
15 days
|
no charge
|
| * 10 |
Contribution to the city social and engineering-transport infrastructure
As of 27 January 2007 according the Resolution of the Cabinet of Ministers of Ukraine, No. 40 which updates the Decree of Kiev City Council from 27 February 2003 "On shared participation (shares) of investors (Building Owners) creation of city social and engineering-transport infrastructure in Kiev City", the building which is set into operation will be approved only after paying the obligatory share of participation fees of investor into development of social, civil, engineering and traffic infrastructure of the city of Kyiv. The amount of such contribution is defined by the Chief Department of Economics and Investments of the Kyiv Municipal State Administration in certificate on approval on the stage of elaborating the project documentation.
According to Law of Ukraine "On Alteration of Some Legislative Acts of Ukraine Regarding Assistance of the Construction", dated 16 September 2008, No. 509-VI, there is a new order on paying the contribution to the city social and engineering-transport infrastructure. This amends the relevant Law of Ukraine “On the Planification and Building-up of the Territories”, dated 20 April 2000, No. 1699-III. Under this amendment the following main features are introduced:
- BuildCo should sigh agreement with local municipal council (the Kyiv City Administration), where the terms of paying contribution to the city social and engineering-transport infrastructure (hereinafter – “contribution payment”) is to be stipulated; such agreement should be signed before building permit obtaining;
- BuildCo should pay contribution payment after finishing the warehouse construction, but not later than one month after it;
- contribution payment should not exceed 10% of warehouse construction budget (4% for residential buildings), excluding expenses related to obtaining the land plot for construction, installation building utility facilities and transport communications;
- if technical terms and conditions establish need for building new utility facilities outside of the land plot, the amount of contribution payment should be decreased by the cost of such expenses;
- contribution payment should not be charged for rendering services, performing of works or transferring of any assets for benefits of local authorities.
The Decision of Kyiv City Council, dated 17 January 2008, No. 3/4475 stipulates special conditions for calculating contribution payment:
Si = Nbe * S * Iz * Ii, where:
Si - amount of share of investor
Nbe - normative for certain branch of economy, which depends on functional use of a new building. In BuildCo’s case this is "other non-residential premises", so Nbe = 52,5
S- square of an object, in our case S = 1300,6
Iz - index of zone of Kiev. In our case we'll take one for peri-urban area of Kiev, Iz = 2,0
Ii- inflation index from 01.01.2003 to present. Periods to be captured are from 2003 to 2009 = 8,3 +9,9 + 12,1 + 15,5+22,3+12,3 = 80,4 % or Ii = UAH 1,804
Si = 52.5 * 1300.6 * 2,0 * 1,804 = UAH 246,359.65
Agency: Kiev City Administration
|
1 day
|
UAH 246,360
|
| 11 |
Request and obtain approval of project design drawings and estimates by comprehensive state expertise
Approval of project design drawings and estimates is granted by the State Enterprises “Special-purpose State Organization – Central Service of Ukrainian State Construction Expertise”(hereinafter – SE “Ukrderzhbudexpertyza”). The agency operates as a one-stop shop. It obtains all the approvals and pays the fees to the relevant agencies within 30 days. However, in practice, this agency is not functional, and the company must gather all the information itself.
The relevant agencies are the municipal architecture and construction department; the road traffic safety department; the fire safety department; the fixed telephone line provider; the electricity distribution authority; the water supply authority; the water and sewerage authority; the sanitary and hygienic department; and the labor safety department.
According to the Resolution of the Cabinet Ministers of Ukraine No.1269 as of 31 October 2007 effective January 1, 2008 the procedure related to obtaining the state expertise from Ukrainian Expertize Authority “Ukrderzhbudexpertiza” has been modified. According to it now there is a timelimit for issuing the expertise between 45 and 120 days. However, the time for the expertise may be prolonged from 45 to 120 days due to environmental aspects of the project. The final clearance is granted after the project is discussed at the next session of the city construction board. It is also stipulated that the authority will be subordinate to to Ministry of Regional Constructions. The fees have been reviewed and vary from 0,05% to 0,7% (depends on normative construction cost), but in all cases such cost may not be higher UAH 180,000.
Agency: State Enterprises -Ukrderzhbudexpertyza
|
74 days
|
UAH 17,248
|
| 12 |
Request and obtain the building permit from the State Inspection of Architecture and Construction Control in Kiev
The application for a building permit is submitted to the State Inspection of Architecture and Construction Control Supervision in Kiev, and should include the location permit, the plan, the state comprehensive expertise opinion, proof of proof of authorization to carry out the construction project, and proof of land title.
The provincial law on construction of buildings was revised: The Kiev Development Regulation was adopted by Kiev City Administration Council Decision No. 11/2587 (dated January 27, 2005). According to this regulation, the time to issue a permit is 7 days.
The company must provide notification of the start of construction to the state inspectorate 7 days in advance and in writing (either by fax or by letter).
As provided by Law of Ukraine "On Alteration of Some Legislative Acts of Ukraine Regarding Assistance of the Construction", dated 09 September 2008, No. 509-VI the procedure of obtaining the building permit has been modified. In particular these changes concern the documents to be submitted along with application:
(1) a document of land title (the State Act on the Right of Ownership to the Land Plot, lease agreement or superficies),
(2) a project documentation for construction with all certificates of approval,
(3) the information about field and technical supervision and
(4) documents proving contractor’s capacity (statutory documents, registration certificate, building licenses, contractor's agreement etc.).
Additionally, these changes provide for a possibility to execute preliminary works on the construction site without permit for construction of a city-planning object (building permit). For such reason applicant should submit to the State Inspection of Architecture and Construction Control in Kyiv the following documents:
(1) a document of land title (the State Act on the Right of Ownership to the Land Plot, lease agreement or superficies),
(2) a city-planning conditions and restrictions for building up of the land plot from local authorities,
(3) a project documentation for execution preliminary works approved and confirmed in compliance with state construction rules,
(4) a document about assigning contractors.
The term for issuance of mentioned permit is 10 working days and it is free of charge. Constructors should execute preliminary works upon the expiration of 7 days from the day of obtaining the permit. However, this option has not been fully implemented in practice.
The scheduled and unscheduled inspections take place during the construction. The inspection procedure during the construction is regulated by Regulation of the Cabinet of Ministers of Ukraine “On Approval of the Regulation on the State Architectural and Building Control”, dated 25 March 1993, No. 225. According to the Regulation the architectural and building control and supervision should be exercised by the State Architectural and Building Inspection and its territorial branches (hereinafter – “Build Inspection”). For this reason Build Inspection has free access to the construction sites and is entitled to execute selective examination. Build Inspection is also authorized to demand the elimination of construction legislation breaches and even to terminate the construction works once they don’t meet the requirements of legislation.
Nevertheless, Law of Ukraine “On the Fundamental Bases of the State Supervision (Control) in the Economic Activity Sphere”, dated 05 April 2007, No. 877-V stipulates the restrictions for state inspection in general.
The unscheduled inspection should be carried out in particular cases which are stipulated by the abovementioned law, namely: (1) on request of BuildCo, (2) on queries of other entities to Build Inspection with information on construction legislation breaches by BuildCo, (3) breaches of the terms and conditions for submission of obligatory reports or submission of such reports with false dates. In any way, scheduled or unscheduled inspections should be executed only in presence of the BuildCo authorized person.
Build Inspection is obligated to send to BuildCo notice on the scheduled inspection in 10 days before examination.
Agency: State Inspection of Architecture and Construction Control in Kiev
|
30 days
|
no charge
|
| 13 |
Request and obtain order on city layout modification from the Main Department of Control for the Improvements in Kiev City
In accordance with Decision of Kyiv City Council, dated 31 October 2006, No. 118/175 the Main Department of Control of City Layout and Design in Kyiv City was reorganized to the Main Department of Control for the Improvements.
The company must obtain an order from the Main Department of Control for the Improvements in Kiev City, clearing it to dig culverts and post road signs for construction work.
Agency: Main Department of Control for the Improvements in Kiev City
|
40 days
|
no charge
|
| 14 |
Request and connect to water and sewage services
The Agency is Kyivvodokanal Joint Stock Company.
The exact total price and other terms for connection the warehouse to water and sewage services should be stipulated in the agreement between the BuildCo as the customer and Kyivvodokanal Joint Stock Company as the supplier on the basis of project documentation elaborated for the purpose of connection. Therefore the cost provided above should be deemed as an average and approximate.
Agency: Kyivvodokanal Joint Stock Company
|
4 days
|
UAH 700
|
| * 15 |
Request and connect to phone services
The Ukrainian State Telecommunications Corporation (Ukrtelecom) is the monopolistic organization in this sphere, but not the only one. The other licensed enterprises can provide the communicational services.
The terms and conditions for connection the warehouse to phone services should be stipulated in agreement between the BuildCo as the customer and Ukrtelecom as the supplier. On May 18, 2009, Decision Number 1491 of the National Committee on Telecommunication of Ukraine, entered into force and set the cost for phone connection to UAH 720 without VAT. The former cost was UAH 692. (http://www.ukrtelecom.ua/services/business/cityphone/tariff)
Agency: Ukrainian State Telecommunications Corporation (Ukrtelecom)
|
4 days
|
UAH 720
|
| 16 |
Obtain Act of Readiness for Exploitation of Warehouse from the State Inspectorate
Agency: State Inspectorate
|
14 days
|
no charge
|
| 17 |
Receive Inspection from State Inspectorate
Agency: State Inspectorate
|
1 day
|
no charge
|
| 18 |
Obtain Certificate of Compliance from State Inspection of Architecture and Construction Control in Kiev
The Act of Readiness for Exploitation of Warehouse should be submitted to the State Inspection of Architecture and Construction Control in Kyiv. Certificate of warehouse compliance with the project documentation, state standards and construction regulations (hereinafter - the “Certificate of compliance”) by State Inspection of Architecture and Construction Control in Kyiv is then issued within 2 working days. However in practice it may take up to 2 months.
The date of issuance of mentioned certificate is the date of setting the warehouse into operation.
The customer of construction should enter into contract with electricity, gas, water, heating etc.
Since 14.01.2010, the cost of this certificate has been estimated between 0.1 and 5.2 of the minimum wage. Considering a 1300 m2 warehouse and the current amount of minimum wage (UAH 864), the cost will be 2.5* 864 = UAH 2160.
Agency: State Inspection of Architecture and Construction Control in Kiev
|
30 days
|
UAH 2,160
|
| 19 |
Request and obtain warehouse architectural and technical passport approval from the Chief Department of Town-Planning, Architecture and Urban Environment Design of the Kiev City State Administration
Agency: Chief Department of Town-Planning, Architecture and Urban Environment Design of the Kyiv City State Administration
|
30 days
|
no charge
|
| 20 |
Register the warehouse with the Main Department of Municipal Property of the Kiev City State Administration
The procedure of registration of ownership rights to the warehouse consists of the formalization of ownership rights by issuance of the Certificate for the Right to Ownership to the Immoveable Property (ownership certificate) by the Main Department of Municipal Property of the Kyiv City State Administration. The registration of the ownership rights with the Technical Inventory Bureau by means of making the respective record in the Register of the Ownership Rights for Immoveable Property.
To register the warehouse, BuildCo must present the acceptance certificate, the technical passport approval documents, proof of ownership of the land, and the building permit. BuildCo is then granted the warehouse ownership certificate.
The timeline for issuance of the certificate of ownership by the Main Department of Municipal Property of the Kiev City State Administration should not exceed 20 days. However, if additional information or documents are required, the term can be extended to up to 45 days.
Agency: Main Department of Municipal Property of the Kiev City State Administration
|
90 days
|
UAH 325
|
| * 21 |
Register a ownership title over the building with Main Department of Municipal Property of the Kiev City State Administration
Then, the Building Company has to register a ownership title over the Building with the Technical Inventory Bureau by means of making the respective record in the Register of the Ownership Rights for Immoveable Property.
Agency: Technical Inventory Bureau
|
30 days
|
UAH 51
|
* Takes place simultaneously with another procedure.