Thu, Nov
65 New Articles

New Amendments to Construction Law: Enhancing Development and Energy Efficiency

New Amendments to Construction Law: Enhancing Development and Energy Efficiency

  • Smaller Small Medium Big Bigger
  • Default Helvetica Segoe Georgia Times

The Serbian parliament has adopted new amendments to the Law on Planning and Construction (“Construction Law”), introducing a series of novelties expected to significantly impact the construction industry, urban planning, and energy efficiency.

The most important amendments are:

  • abolishment of the land conversion fee,
  • mandatory energy passports for all buildings,
  • mandatory installation of chargers for electric vehicles,
  • obligation for investors to have third-party liability insurance policies, and
  • improving the electronic system for issuing construction permits.

One of the primary changes pertains to the abolishment of the land conversion fee. In practice this is expected to allow the current land users to convert their usage rights into ownership rights with no compensation, enabling further development and trade with no restrictions. Entities which have been the subject of privatization, bankruptcy or enforcement procedures as well as their legal successors will need to obtain the information on location issued by the soon-to-be-established Urban Planning and Urbanism Agency. In order to complete the conversion procedure, this information on location must verify that the purpose of the subject land is not intended for the construction of public purpose facilities or public areas. Additionally, all ongoing disputes regarding ownership rights on the land must be resolved before the conversion procedure can be finalized.

In the area of energy efficiency, the amendments to the Construction Law introduced requirements for all buildings to obtain mandatory energy passports. These passports will serve as a certification of a building’s energy efficiency and environmental impact and will be a mandatory requirement for all sales going forward. Owners of existing commercial buildings are similarly obligated to obtain energy passports for buildings or their separate units within five years from the date of implementation of these amendments.

Another key addition in this area is the mandatory installation of chargers for electric vehicles in all new buildings and parking areas. With the growing popularity of electric vehicles and the increasing need for accessible charging infrastructure, this amendment aims to promote electric mobility and reduce dependence on fossil fuels.

Moreover, the new amendments prioritize accountability and protection for all parties involved in construction projects. It is now mandatory for investors to have third-party liability insurance. This measure aims to safeguard the interests of stakeholders and provide financial security in case of unforeseen incidents.

The amendments also focus on improving the electronic system for issuing permits by introducing more accountability for meeting prescribed deadlines.

In conclusion, the new amendments to the Construction Law mark a progressive step forward in the construction sector and are expected to create a more resilient and environmentally conscious environment.

The information in this document does not constitute legal advice on any particular matter and is provided for general informational purposes only.

By Ana Lukovic, Partner, Nikola Siljegovic, Senior Associate, and Dordje Filipic, Associate, Karanovic & Partners

Serbia Knowledge Partner

Committed to redefining a law firm's role in an emerging regional market, Gecić Law is a full-service law firm that advises international and local clients from the public and private sectors in navigating the complex legal landscape of the region across multiple practice areas. Members of the Gecić Law team have graduated from leading universities in the US and Europe. They have extensive local and international experience, with a particular focus on EU regulatory frameworks and international trade and a proven track record in providing innovative and practical solutions in the most complex of matters.

Gecić Law is an exclusive member of two leading global alliances, TerraLex and TAGLaw, extending its international footprint. The firm and its lawyers have continuously been recognized in several practice areas by elite global directories, including The Legal 500, Chambers and Partners and Benchmark Litigation. Gecić Law was named Law Firm of the Year: South Eastern Europe 2021 and Law Firm of the Year: Eastern Europe and the Balkans 2020 at The Lawyer European Awards and was repeatedly nominated in other practice areas.

For more details, please visit geciclaw.com.


Our Latest Issue