Meet the Law | Regulation on the Performance of Civil Construction and Public Works, Construction Projects and Works Inspection Activities

Presidential Decree no. 146/20, of 27 May, which enacts a new Regulation on the Performance of Civil Construction and Public Works, Construction Projects and Works Inspection Activities (the "Regulation"), has been published, thus revoking Presidential Decree no. 63/16, of 29 March.

What is the Regulation on the Performance of Civil Construction and Public Works, Construction Projects and Works Inspection Activities?

The Regulation sets forth the technical, financial and good repute criteria required for obtaining registry titles and licences for the performance of civil construction and public works, construction projects and works inspection.

Additionally, it sets out the documentation that must be submitted with the applications for registrations and licenses; the terms for approving alterations of classes in previously granted licences; the application procedure for renewal of licences and registry titles; the inspection of the performance of these services; and respective penalties.

What changes does this new regime bring about?

i.    Municipal Administrations are now responsible for granting registry titles and 1st and 2nd class licences, Provincial Governments are responsible for granting 3rd and 4th class licences and the Instituto Regulador de Construção Civil e Obras Públicas ("IRCCOP") is responsible for granting licences of the remaining classes.

However, the transfer of powers is subject to IRCCOP's positive assessment that the Municipal Administrations and Provincial Governments have the necessary technical, logistical and human resources. Until then, the power to grant registry titles and licences shall remain with the IRCCOP;

ii.    Reputational requirements have been substantially reduced. It is now only required that the applicant is not expressly forbidden to carry out any of the activities in question.

iii.    Municipal Administrations and Provincial Governments now have powers to inspect the activities in question and impose respective penalties;

iv.    Depending on the penalty applied, accessory penalties may now entail additional effects, such as the prohibition of entering into new construction works' contracts and the shutting down of ongoing construction works.

What happens to the pending registry titles and licence applications?

The Regulation is only applicable to future actions required in each pending application and does not jeopardise actions already carried out.
As regards pending applications, applicants have 30 (thirty) days from the entry into force of the new Regulation to amend them in order to be compliant or otherwise applications will be considered ineffective.

What happens to registry titles and licences already granted?

Registry titles and licences that have already been granted must be replaced within 2 (two) years from the Regulation's entry into force.

When will the Regulation enter into force?

The Regulation has been effective since 27 May 2020.