News

Construction 2009-2010 through the Prism of the Anti-Crisis Law

22/12/2009

On December 16, 2009, Building.UA Press Center hosted a workshop on Construction 2009-2010 through the Prism of the Anti-Crisis Law

The workshop was held by a senior associate of Vasil Kisil & Partners Law Firm Mrs. Natalia DOTSENKO-BELOUS and Chairman of the Internal Audit Committee of the Foundation of Intensive Technologies of Microeconomics, a member of the Editorial Board of «Bukhgalter» Magazine Mr. Ivan CHALY.
 
The workshop featured two 2 sets of key issues:

Module 1. Land and Construction Aspects.

This module of the workshop focused on the following aspects of land law:

  • Simplification of the procedure for the acquisition of title to land: analysis of Law of Ukraine No. 1066-VI “On Amending Certain Laws of Ukraine in Respect of the Title Documents to Land Plots and Procedure for Land Division and Combination,” dated March 5, 2009;
     
  • Land auctions: practice vs. law;
     
  • Voluntary and involuntary termination of title to land plots in the light of the Law of Ukraine “On Alienation of Privately Owned Land Plots, Other Immovable Property Located on Them for Public Needs or for Reasons of Public Necessity";
     
  • A “moratorium” on payment of land tax and rent: from legislative inability to practical application;
     
  • Renewal of Land Lease Agreements.
     
The speakers highlighted the following key legal issues directly related to construction:


  • Legalized status of construction standards: applied relevance of the Law of Ukraine “On Construction Standards";
     
  •  Public hearings: practice improved by crisis;
     
  • Town-planning rationale: analysis in the light of State Construction Standard 1.1.-4-2009;
     
  • Town-planning conditions and restrictions - the practice of issuance and preparation;
     
  • State construction expert examination and projects exempt from the examination: in search of new opportunities;
     
  • The procedure for obtaining the permit for construction works: a step-by-step action algorithm;
     
  • Opportunities to use the permits for construction preparation works for retaining the titles to land plots;
     
  • The status of the general contractor - new insights into old requirements (Letter No. 12/14-728 of the Ministry of Regional Development and Construction of Ukraine, dated July 9, 2009);
     
  •  New action algorithm related to the commissioning of completed construction of property: Certificate of Compliance vs. Certificate of Conformance;
     
  • Simplified procedure for location of small architectural forms: Analysis of the Procedure for the Location of Small Architectural Forms for the Conduct of Business Activities, which was approved by CMU Resolution No. 982, dated August 26, 2009;
     
  • Ways to legalize unauthorized construction through the prism of the Temporary Procedure for Accepting into Operation the Completed Construction of Private Mansion-Type Dwelling Houses, Country Houses and Garden Houses with Household Structures and Buildings Constructed without any Permit for Construction Works, which Procedure was approved by CMU Resolution No. 1035, dated September 9, 2009.
 
Module 2. Construction: Problems of Accounting for Business Transactions and Latest Explanations of State Authorities.


  • VAT exemption for sale of newly built dwelling houses: a new set of contradictory explanations from the State Tax Administration of Ukraine;
     
  • Construction: tax credit without any limitation period;
     
  • Cottage village in the form of a horticultural society: registration of a not-for-profit organization, land sale;
     
  • A new form of sale of the newly built dwelling houses: lease buyout/purchase, traps you should know about;
     
  • Limitation of gross expenditure by projected indices - malpractice or regularity;
     
  •  The problems of the system of investment through Construction Financing Funds:

  1. Developer replacement - accounting for the transfer of construction-in-progress;
  2. What are the reasons for the developer's refusal to issue tax invoices to principals;
  3. Property rights accounted for by trustors.
     
  • The Ministry of Construction, Architecture and Housing and Utility Sector of Ukraine vetoes the set-off of the general contractor’s allocations;
     
  • Primary housing construction - problems within current practice:
     
  1. the consequences of improperly completed essential details of acts/certificates;
     
  2.  the use of unconventional forms of business activities;
     
  3. workflow peculiarities when a Contract is terminated and the contractor terminates its works ahead of schedule; and
     
  • Construction-in-progress: accounting for conservation operations.
     
The participants of the workshop received detailed comments and professional expert advice and had an opportunity to debate on pressing practical problems by taking advantage of an open dialogue with experts to discover new opportunities for construction projects. All of the attendees acknowledged that the issues discussed were undoubtedly relevant and materials presented by the workshop authors were highly valuable for direct hands-on application.
 
Vasil Kisil & Partners holds, from time to time, industry-specific legal workshops in various fields of business and invites all interested persons to participate. The workshops will be announced at Vasil Kisil & Partners’ corporate web-site at  www.kisilandpartners.com.