The Law Shaking Up the Construction World: Urban Planning and Authorization Rules Change for the First Time in a Quarter Century

Construction in Romania operates under outdated rules, completely unadapted to current realities. This is the underlying problem for some of the most criticized segments of construction: urban planning and authorization. The norms currently in use were established by the immediate post-communist regime—transitional laws designed to bring some balance to a Romania that was heavily destabilized across all sectors. Twenty-five years later, these same laws, still in effect, cause nothing but problems. Following multiple pressures from professional groups, the moment for change has arrived: the modification and tightening of the urban planning code and construction authorization are being drafted.

2016 appears to be a revolutionary year for the construction sector. At the beginning of the year, control norms were tightened and the value of contraventions was increased, and now a true paradigm shift in the field is being discussed: the modification of laws that have been in effect for 25 years in urban planning and authorization. If these changes are implemented, then city hall directors will also be fined for issues that arise, and the amount of the fines will be up to 50 times higher than the sanctions currently practiced.

“In urban planning and authorization, an acute need for change has been felt for many years. There is a need not just for sanctions, but for discipline, homogeneity, and laws that are clear, applied consistently, and feared by those with ill intentions. Otherwise, we will continue to drive away major investors and wrong those who want to build a home within the limits of the law,” explained Mihai Manea, director of the construction firm Manea Cons, for IMOPEDIA.ro.

Currently, the document is being drafted by the Government and is not in its final form. However, the current content indicates a desire to strengthen discipline in urban planning and construction authorization. To achieve this goal, fines up to 50 times higher than those currently applied could be imposed, along with drastic sanctions for frauds that are common at this time.

“For example, the new set of laws clearly stipulates that if a public institution does not provide public information regarding urban planning and spatial planning, the fine can reach 50,000 RON. In comparison, under the law currently in force, the minimum fine is 1,000 RON,” continued builder Mihai Manea.

The same fine is provided for cases where documentation containing erroneous data is discovered, in which case criminal law may even be applied. Currently, the sanctions provided for the same scenario by the law in force vary between 1,000 and 9,000 RON. At the same time, the new law clearly establishes who must approve and sign spatial planning and urban planning documentation. If the act is signed by someone without this authority, the fine varies between 10,000 and 25,000 RON. Demolition works, whether total or partial, will also no longer be overlooked. In this case, fines were high even until now, but no one applied them. Thus, the fine varied between 1,000 and 100,000 RON. If the law is implemented, the lower limit will increase to 20,000 RON, while the upper limit will be reduced to 50,000 RON.