The government approved the plan for the establishment of a central construction administration, which will be completed in 2028

Prague - The government has approved a reform plan that introduces a central state construction administration. The existing 626 building offices are to be transformed into the Office for Land Development with 14 regional directorates and other territorial and detached workplaces. This year, the necessary legislation will be prepared. The new model of state construction administration is expected to start operating in 2028. The Minister for Regional Development, Zuzana Mrázová (ANO), stated this after today's government meeting. The amendment to the building law was submitted in the form of a parliamentary proposal, and its first reading was approved in the Chamber of Deputies.

According to Mrázová, the centralized state construction administration will be introduced in four phases. This year, the amendment to the building law is being prepared and approved, along with the introduction of new conditions into practice. Next year, a new structure, including the Office for Land Development, should be established. Throughout the year, agendas from central government bodies will be transferred to the new office. The new model is expected to start functioning in 2028. The digitization of all tools and processes is to follow after 2030.

Mrázová further stated that an interdepartmental project titled 'Implementation of the New Model of State Construction Administration' will be created. This will have two levels of management - strategic and operational. According to the government, the reform of construction administration in the Czech Republic will introduce a more transparent and efficient building permitting system, shorten the approval time for constructions, and facilitate the process of spatial planning.

"The reform of construction administration in the Czech Republic is absolutely necessary. Due to bureaucracy, projects are prepared for ten years or more, which hinders the construction of housing, infrastructure, and the development of the entire economy. Therefore, we must fundamentally change the system and accelerate the building process. We want to kickstart infrastructure construction, housing for people, and corporate investments. Faster construction will bring faster GDP growth and, of course, additional revenues to the state budget," stated Prime Minister Andrej Babiš (ANO) in a press release from the Ministry of Regional Development.

In an earlier interview with ČTK, Mrázová stated that the state does not plan to lay off officials from building offices with the introduction of the central construction administration. In the context of the reform of construction administration, according to her, it will be necessary, on the contrary, to hire new officials. The specific amount of how much the initial investments in the reform of the construction administration will cost was not specified by the minister, but according to her, they will not be the cheapest. However, according to Mrázová, the investments should subsequently return to the budget due to greater administrative efficiency.

The new building law from 2021 was in preparation for several years. Its current form came into effect on July 1, 2024. The form of the amendment introducing a central construction administration was already prepared by the ANO movement before the elections and builds on the provisions of the law from 2021. The change in legislation has its supporters and opponents among experts. For example, the Union of Construction Entrepreneurs and the Association of Developers support the form of the amendment. However, some parts are problematic for chambers of engineers and architects or representatives of local governments.