Penalties in construction

Commercial law
09.02.2022
Law Services - Penalties in construction

  It will probably be no secret that construction in Ukraine today is quite a costly process, and this, of course, requires a lot of effort.
After all, all parties to the construction must adhere to the statutory procedures and procedures for construction work. And in the presence of violations, of course, comes the responsibility with significant penalties.
The responsibility in the field of construction is provided by several regulations, in particular:
– Law of Ukraine “On Liability for Offenses in the Sphere of Urban Development”
– Law of Ukraine “On Environmental Protection”
– Code of Ukraine on Administrative Offenses (hereinafter – the Code of Administrative Offenses) and
– Criminal Code of Ukraine (hereinafter – the Criminal Code).
Art. 2 of the Law of Ukraine “On Liability for Offenses in the Sphere of Urban Development” defines the following entities and fines in the field of urban planning:
1. Urban planning entities that are customers of the construction of facilities (in the case of urban planning activities) or those that perform the functions of the customer and the contractor at the same time, are liable in the form of a fine for the following offenses:
– performance of preparatory works without notification of the beginning of their implementation, as well as providing inaccurate data in such notification – in the amount of 10 subsistence minimums for able-bodied persons (from 01.12.2021 – 1 subsistence level for able-bodied persons is 2481 UAH);
– performance of construction works without notification of the beginning of their implementation, as well as providing inaccurate data in such notification, committed in respect of objects that by class of consequences (liability) belong to objects with minor consequences (CC1), – in the amount of 36 subsistence minimums for able-bodied persons;
– execution of construction works without obtaining a permit for their execution:
a) on objects that according to the class of consequences (responsibility) belong to objects with average consequences (SS2), – in the amount of 370 subsistence minimums for able-bodied persons;
b) on objects that according to the class of consequences (responsibility) belong to objects with significant consequences (CC3), – in the amount of 900 subsistence minimums for able-bodied persons;
– operation or use of construction objects not put into operation, as well as providing inaccurate data in the declaration of readiness of the object for operation or in the act of readiness of the object for operation, committed about:
a) objects that according to the class of consequences (responsibility) belong to objects with insignificant consequences (SS1), – in the amount of 36 subsistence minimums for able-bodied persons;
b) objects that according to the class of consequences (responsibility) belong to objects with average consequences (SS2) – in the amount of 370 subsistence minimums for able-bodied persons;
c) facilities that by the class of consequences (liability) belong to the facilities with significant consequences (CC3) – in the amount of 900 subsistence minimums for able-bodied persons;

failure to provide the customer with technical supervision in cases where such supervision is required by law – in the amount of 40 subsistence minimums for able-bodied persons;
– failure of the customer to carry out copyright supervision in cases where such supervision is required by law – in the amount of 50 subsistence minimums for able-bodied persons;
2. Entities of urban planning that perform construction work are liable to a fine for the following offenses:
– performance of preparatory works without notification of the beginning of their performance – in the amount of 10 subsistence minimums for able-bodied persons;
– performance of construction works without notification of the beginning of their performance in respect of facilities, the construction of which is carried out based on a construction passport – in the amount of 10 subsistence minimums for able-bodied persons;
– construction works
without sending a message
about the beginning of the performance of such works:
a) on objects that according to the class of consequences (responsibility) belong to objects with insignificant consequences (SS1), – in the amount of 36 subsistence minimums for able-bodied persons;
– execution of construction works without obtaining a permit for their execution:
a) on objects that according to the class of consequences (responsibility) belong to objects with average consequences (SS2), – in the amount of 370 subsistence minimums for able-bodied persons;
b) on objects that according to the class of consequences (responsibility) belong to objects with significant consequences (CC3), – in the amount of 900 subsistence minimums for able-bodied persons;
– maintenance of executive documentation in violation of building codes, state standards, and regulations – in the amount of 18 subsistence minimums for able-bodied persons;
– the use of building materials, products, and structures that do not meet state norms, standards, technical conditions, and design decisions, as well as those that are subject to mandatory certification, but have not passed it – in the amount of 90 subsistence minimums for able-bodied persons;
– performance of construction works in violation of the requirements of construction norms, state standards, and rules or approved design decisions – in the amount of 45 subsistence minimums for able-bodied persons.3. Urban planning entities shall be liable in the form of a fine for the following offenses:
– non-compliance with the instructions of the state architectural and construction control bodies regarding:
a) elimination of violations of the requirements of legislation in the field of urban planning, building codes, standards, and rules – in the amount of 15 subsistence minimums for able-bodied persons;
b) suspension of preparatory and construction works – in the amount of 50 subsistence minimums for able-bodied persons;
– non-admission of officials of the state architectural and construction control bodies to construction sites, and enterprises of the construction industry to perform the functions assigned to them – in the amount of 30 subsistence minimums for able-bodied persons.

Note: the fine may be imposed on urban entities within 6 months from the date of detection of the offense, but not later than 3 years from the date of its commission. If urban planning entities commit two or more offenses, fines are imposed separately for each offense committed.

In addition to the above, the Code of Administrative Offenses also imposes penalties in the field of construction. In particular, Art. 96 of the Code of Administrative Offenses provides for liability for violation of the law, building codes, standards, and regulations during construction.
In addition, Art. 96-1 of the Code of Administrative Offenses determines sanctions for violations of the law during the planning and development of territories and Art. 188-42 – for non-compliance with legal requirements (instructions) of officials of the state architectural and construction control and supervision.
According to Art. 283 of the Code of Administrative Offenses, having considered the case of an administrative offense, the body (official) decides on the case.
According to the provisions of Art. 307 of the Code of Administrative Offenses, the fine must be paid by the violator no later than 15 days from the date of service of the decision to impose a fine, except in cases provided for in Art. 300-1 of this Code, and in case of an appeal against such a decision – not later than 15 days from the date of notification of leaving the complaint unsatisfied. Regarding criminal liability in the field of construction, Article 197 of the Criminal Code provides for liability for unauthorized occupation of land and unauthorized construction. Also Art. 275 of the Criminal Code determines the responsibility for violating the rules for safe use of industrial products or safe operation of buildings and structures.
In turn, by Art.51 of the Law of Ukraine “On Environmental Protection” in the case of design, placement, construction, commissioning of new and reconstruction of existing enterprises, buildings, and other facilities, improvement of existing and implementation of new technological processes and equipment, as well as during operation facilities must be provided:
– environmental safety of people;
– rational use of natural resources;
– compliance with standards of harmful effects on the environment.
It should be provided:
– capture, utilization, and disposal of harmful substances and wastes or their complete elimination;
– compliance with other requirements for the protection of the environment and human health.
Enterprises, institutions, and organizations whose activities are related to the harmful effects on the environment, regardless of the time of their commissioning must be equipped with:
– facilities, equipment, and devices for treatment of emissions and discharges or their disposal, reduction of exposure to harmful factors, as well as
– devices for monitoring the amount and composition of pollutants and the characteristics of harmful factors.
Economic and other projects must-have materials to assess their impact on the environment and human health. It is prohibited to put into operation enterprises, buildings, and other facilities where full compliance with all environmental requirements and implementation of measures provided for in construction and reconstruction projects is not ensured.
In addition, Art.68 of the above Law stipulates that violation of the legislation of Ukraine on environmental protection leads to disciplinary, administrative, civil, and criminal liability established by this Law and other legislation of Ukraine.
CONCLUSION.
Thus, liability for violations in the field of construction is quite diverse and is regulated by numerous regulations. Entities in the field of construction must remember what their responsibilities are and strictly adhere to all established procedures and norms. This is the key to protecting the latter from additional costs and paying fines during construction.