Government approves package of measures to accelerate construction and reconstruction: details on the adopted decisions
A comprehensive package of measures initiated by the Ministry for Communities and Territories Development has been approved, designed to simplify construction regulations and accelerate the implementation of reconstruction projects.
These are practical changes aimed at removing systemic barriers that have hindered the sector’s development and at making the rules of operation clear and predictable for all market participants.
These decisions are part of a broader reform and improvement of legislation in the field of urban planning. In the first phase, approaches are being updated through government resolutions, and the next step will involve legislative changes, particularly in the areas of community spatial planning and ensuring legal certainty in the construction sector.
“A strong construction sector is the foundation for the rapid and high-quality recovery of communities. Our task is to ensure that permitting procedures are clear, predictable, and do not hinder project implementation. The adopted package of decisions changes the very logic of the sector’s operations and responds to modern challenges. The main goal is to create conditions for accelerating reconstruction, reducing risks for businesses, attracting investment, and developing the construction sector as one of the key drivers of the economy,” emphasized Oleksii Kuleba, Deputy Prime Minister for Restoration, Minister for Communities and Territories Development of Ukraine.
One of the key innovations is the introduction of a new approach to procurement in construction projects funded by public funds.
This refers to a framework agreement mechanism that allows for the creation of a pre-approved list of contractors who meet clearly defined qualification requirements, enabling the rapid selection of a contractor for a specific project. This approach significantly reduces the time required for procurement procedures and allows for the faster launch of reconstruction projects for housing, infrastructure, social facilities, and more.
At the same time, the approach to pricing in construction is changing. The new rules are intended to bring cost estimates closer to real market conditions, particularly by updating methods for determining wage levels. For the first time, regulations are establishing the principle that wages in cost estimates must reflect the actual market, while calculations will be made based on actual costs. This is intended to reduce shadow practices and increase transparency in the industry. Simultaneously, we are launching a database of construction material prices as part of the Unified State Electronic System in the construction sector.
Significant changes also apply to permitting procedures. Construction clients will get the opportunity to choose where to receive administrative services— at the local authority (SACC - State Architectural Construction Control) or at State Inspectorate for Architecture and Urban Planning of Ukraine.. This creates an alternative in a system that previously often left applicants with no real choice, and is expected to shorten the time it takes to obtain documents and reduce the risk of delays. The mechanism is being introduced on a pilot basis, with a subsequent effectiveness assessment.
A separate decision established a mechanism for appealing denials of urban planning conditions and restrictions. Today, this process takes an average of over 9 months, and more than a third of applications, according to the Unified State Electronic System in the Construction Sector (USESCS), are denied. At the same time, there was practically no effective mechanism for appealing such decisions, and even a formal or unfounded denial could block a project indefinitely. The introduced changes make it possible to appeal such decisions. If the decision is found to be unfounded, the client will be allowed to continue the design process in compliance with the requirements of urban planning documentation without obtaining urban planning conditions and restrictions.
The issue of development in areas adjacent to airfields, which became particularly acute during the war, has also been addressed. Due to the war, many civilian airfields and related services lack valid certificates confirming their operational capacity to assess the impact of planned facilities. The adopted amendments introduce a clear mechanism for accounting for such restrictions even in the absence of standard approvals. An updated procedure for coordination between urban planning, aviation, and defense authorities has also been established. This allows construction near airfields to proceed without compromising safety requirements.