At the session held on December 19, 2024, the Government of Montenegro adopted the Bill of Law on Construction of Buildings and the Bill of Law on Spatial Planning. It was proposed that these laws should be adopted through an expedited procedure.
So far, these areas have been comprehensively regulated through the Law on Spatial Planning and Construction of Buildings. In the event of the adoption of the proposed changes, instead of the current single law, these areas will be separated into two new laws, while the issue of legalization is planned to be addressed through a separate third law.
The Bill of Law on Construction of Buildings is aligned with Directive 2006/123/EC on services in the internal market, Directive 2005/36/EC on the recognition of professional qualifications, Directive 2013/55/EU amending Directive 2005/36/EC on the recognition of professional qualifications, and Annex I of Regulation No. 305/2011 of the European Parliament and the Council on laying down harmonized conditions for the marketing of construction products and repealing Directive 89/106/EEC.
One of the significant changes introduced by the Bill of Law on Construction of Buildings is the requirement to obtain a construction permit and the decentralization of responsibilities regarding the issuance of construction permits between the Ministry and local self-government units.
In the regular procedure, a construction permit will be issued to the investor within 30 days from the date of submitting the application, which must include: the main project; a report on the positive review of the main project; approval from the chief country or city architect; proof of liability insurance for the designer and reviewer of the main project. All other required documentation will be obtained ex officio by the competent authority.
The obligations of the investor before the commencement of construction, the deadline for completing the construction of the building, and the responsibilities in case of a change of investor are also stipulated. The investor is required to complete the construction of the building within five years from the date the construction permit is issued. If construction is not completed within the specified timeframe, the investor must pay an annual fee and continuously maintain the construction site until an occupancy permit is obtained.
According to the Bill of Law on Construction of Buildings, the local self-government authority will issue construction permits for buildings, except in cases involving country buildings of general interest; buildings with a gross construction area of 3,000 m² or more; and hotels or tourist settlements with four or five stars, as well as tourist resorts.
Exemption from the obligation to obtain a construction permit will apply to temporary and auxiliary structures.
A new provision introduces the requirement for a technical inspection to issue an occupancy permit for all buildings, except for the category of single-family residential houses.
The Bill of Law anticipates that the construction permit system will achieve a higher level of safety and security for buildings, as well as increase legal certainty for investors. The Bill of Law also includes new activities in the construction process, prescribes greater responsibility for individuals engaged in construction activities, and introduces enhanced inspection oversight through construction inspectors.
The Bill of Law provides revised conditions for licensing companies engaged in the preparation of technical documentation, including design, review of technical documentation, professional supervision, technical inspections, and designer supervision, as well as other licenses related to activities prescribed by the Bill of Law.
The Bill of Law on Construction of Buildings envisions the establishment of a separate Chamber of Architects, as well as the formation of two chambers: the Engineering Chamber of Montenegro and the Chamber of Architects and Planners of Montenegro, comprising architects, urban planners (from both engineering and non-engineering disciplines), and spatial planners.
The Bill of Law on Spatial Planning defines a new policy in this area, with a primary focus on the decentralization of planning tasks and the allocation of responsibilities between the country and local self-governments for adopting planning documents, in accordance with European regulations and practices. This approach partially restores the authority of local self-governments in the field of spatial planning and development.
The Bill of Law designates and separates planning documents into country-level planning documents and local-level planning documents. These documents are defined in a manner that allows for comprehensive planning assessment and definition of various spaces at both local and country levels, considering their environmental characteristics, significance, and coverage area. Additionally, the Bill of Law redefines instruments for implementing planning documents and addresses construction land. It introduces and defines the concept of urban land consolidation, a process that merges existing cadastral parcels within the consolidation area into a single unit and reorganizes them into urban plots in accordance with the planning document. This process will be conducted by the Urban Land Consolidation Commission.
The Bill of Law also envisions the development of a spatial management program, which will outline the preparation of new planning documents, amendments and additions to existing ones, as well as measures significant for the creation of these documents.
The Bill of Law stipulates that the revision of a country-level planning document will be carried out by the Revision Commission, while the revision of a local-level planning document will be conducted by the business entity responsible for drafting the country and local planning documents.
Of particular importance is the Spatial Plan of Montenegro, as proposed in the Bill of Law. This plan serves as a strategic document and the general basis for the organization and development of Montenegro’s territory. It is adopted for a 20-year period and defines national goals and measures for spatial development in line with Montenegro's economic, social, environmental, and cultural-historical development.
Also of significance is the development of a national architectural development strategy, adopted by the Government of Montenegro. This strategy aims to promote architecture as part of the national culture and identity. Additionally, it establishes conditions for improving the quality of the built environment.
Additionally, the Bill of Law proposes the establishment of the Chamber of Architects and Planners of Montenegro, as well as inspection oversight in this field through an urban planning inspector.
The Bill of Law on Spatial Planning is aligned with Directive 2014/89/EU which is establishing a framework for maritime spatial planning, Directive 2005/36/EC on the recognition of professional qualifications, Directive 2013/55/EU amending Directive 2005/36/EC on the recognition of professional qualifications, and the Protocol on Integrated Coastal Zone Management in the Mediterranean (Madrid, 2008), which was ratified through the adoption of the Law on Ratification of the Protocol on Integrated Coastal Zone Management in the Mediterranean in 2011.
Finally, it is important to highlight the instability of Montenegrin legislation in this area, given the fact that numerous changes have been introduced over the past decade, with several laws being enacted during this period, often with significant differences. Before 2008, Montenegro had a model where this area was regulated by multiple laws, such as the Law on Spatial Planning and Land Development, the Law on Construction of Buildings, and the Law on Construction Land. For the first time in 2008, a unified law was introduced to comprehensively regulate this field - the Law on Spatial Planning and Construction of Buildings - which remained in force until 2017. During its applicability, this law underwent as many as eight amendments.
A similar fate befell the Law on Spatial Planning and Construction of Buildings, adopted in 2017, which has been amended six times to date. Now, without valid justification, there is a return to the pre-2008 model, involving multiple laws regulating this area. This approach reflects a lack of continuity in the legislative framework and creates additional legal uncertainty. Unfortunately, the General Regulation Plan of Montenegro, which was supposed to be adopted more than four years ago, has still not been implemented, further worsening the situation in this field.
Instead of constant changes to the legal framework, it is crucial to focus on the effective implementation of existing regulations. The issue often lies not with the laws themselves but with their enforcement and oversight. Even less-than-perfect legal solutions can yield results if consistently applied. Conversely, frequent legal amendments destabilize the system, discourage investors, and hinder long-term planning, which is not in the interest of a country striving to attract foreign investments and achieve sustainable development.
By Lana Vukmirovic Misic, Senior Partner and Dajana Drljevic and Bojan Rolovic, Associates, JPM & Partners
