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Amendments to the Construction Law

Amendments to the Construction Law
On the 20th of April 2015, a presidential decree was issued[1] amending some provisions of the Egyptian Construction Law.[2] The amendments revolve around recognizing and expanding the powers of the Armed Forces Engineering Authority, an entity with a wide range of engineering and urban planning related responsibilities. The mandate of the Authority includes - among other things: contributing to enhancing development, responding to natural disasters and domestic crises, participating in the construction of infrastructure projects, roads and bridges and schools, participating in tourism development, and in providing economic and distinguished housing for all authorities and syndicates, general planning of cities and establishment of Bedouin villages and Nubians houses. This shows the expansive and diverse powers given to the Armed Forces Engineering Authority. The recent amendment to the Construction Law stipulated that the Armed Forces Engineering Authority should be considered the competent administrative body for planning, regulating and implementing projects in strategic areas of military importance or areas owned by the armed forces. Previous versions of the Law gave the same powers to many public authorities and bodies, such as: the Industrial Development Authority with regards to industrial areas, and the Tourism Development Authority with regards to touristic areas. Consequently, the powers given to the Armed Forces Engineering Authority over such lands conforms with this general trend. In addition, the new amendments stipulated that the terms and conditions of the regulation of construction work are applied to strategic areas or lands owned by the armed forces, and national projects implemented in accordance with decisions made by the cabinet. However, the amendments added a new article that makes an exception to national projects implemented by the Armed Forces Engineering Authority from the provisions of article 39 which stipulates that: it is not allowed to build, expand, or add other floors to any building except after obtaining a license from the competent administrative body of planning and organization. The exception only applies provided these projects have been proven to be safe and are carried out in accordance with construction specifications as per a certificate issued by the Engineering Authority itself.
The Construction Law regulates other activities, such as specifications of advertisements and banners. It also goes beyond pre-construction and construction phases, regulating the post-construction phase, which includes maintenance and demolition.
Background on Construction Law No. 119 of 2008
The Construction Law, known as the "Unified Construction Law", was issued in 2008 and is concerned with the organization of urban planning, construction work, and the preservation of real estate. The Law also specified the places where construction of buildings is prohibited, the competent authorities implementing its provisions, and which is responsible for regulating the construction process in Egypt, the law also mandates the General Authority for Urban Planning to be responsible for drawing up the general policy of planning and urban development. The Law stipulated the establishment of a Supreme Council for Planning and Urban Development, which is headed by the Prime Minister, with membership made up of relevant ministers, heads of public authorities working on urban development, and relevant experts. The Supreme Council is concerned with the following, among other things: 1) Adoption of the general objectives and policies of planning and urban development on the national level; 2) Coordination between ministries and bodies concerned with urban development to furnish and implement the approved plans; 3) Identification of distinguished areas, approval of standards, implementation mechanisms and sources of funding; 4) Providing legal opinion on any relevant draft law; 6) Compilation of all essential requirements needed to obtain licenses set forth in various laws and decisions. The Construction Law regulates other activities, such as specifications of advertisements and banners. The Law specifies terms and conditions for obtaining the licenses, as well as places where the erection of advertisements is permitted. It has devoted a full chapter to regulate the construction works in general; including terms, conditions, fees, and documents needed to obtain construction permits, as well as the follow up procedures and inspections to secure safety of buildings, and to ensure the fulfilment of license requirements. The Law goes beyond pre-construction and construction phases, regulating the post-construction phase. Chapter 4 regulates the preservation of real estate wealth, by organizing a Union of Occupants, maintenance and renovation of buildings, and the demolition of dilapidated facilities. The Law also regulates appeals and challenges to decisions issued by the administrative authorities. Finally, Chapter 5 of the Law stipulates penalties including the following:
  • Fines ranging from EGP 50,000 to EGP 200,000 for introducing unapproved changes to a certified land division.
  • Imprisonment for a period not exceeding five years, or a fine ranging from twice to three times the value of the violation, on any person constructing, extending, adding new floors, modifying, strengthening, repairing, or demolishing buildings without obtaining necessary licenses from the competent administrative authority.
  • Imprisonment for a period of not less than six months, and/or a fine ranging from twice to three times the value of the violation, with a minimum of EGP 50,000, for any person who constructs buildings without following technical specifications, commits fraudulent acts in the use of building materials, or uses materials not conforming to specifications. If this act results in total or partial demolition of the building or affects its integrity, the penalty shall be imprisonment for a period of not less than six months, and/or a fine ranging from twice to three times the value of the violation. If the act caused the death of one or more persons, or injury leading to disability of more than three, or if the violating act was linked to forgery or use of forged document, the penalty shall be imprisonment for not less than one year and not more than ten years, and/or a fine ranging from twice to three times the value of the violation.
Penalties in the Construction Law are imposed without prejudice to any more severe penalties stipulated in another law. In addition to these penalties, other administrative penalties are stipulated, such as writing off the architect, implementation supervisor, or contractor, from the records of the Syndicate of Engineers, or records of the Federation of Contractors, for a period not exceeding two years. In the case of repetition, write-offs shall be for a period not less than twice the duration of imprisonment. In all cases, the verdict shall be published in two widely circulated daily newspapers at the expense of the convicted person.
Conclusion
The importance of the Construction Law is amplified due to current housing problems, as well as in view of the great expansion of the real estate market and increasing trend towards mega-projects. This Law covers all issues related to the construction process beginning from licensing phase and ending with making the necessary maintenance of the property, the demolition of buildings, and the penalties for violators. The recent amendments to the Law have addressed one point which is the inclusion of Armed Forces Engineering Authority within the bodies responsible for planning and construction in certain areas such as land owned by the armed forces, or national projects carried out by the Authority based on a decree issued by the Cabinet of Ministers. On the other hand, the amendments excluded national projects from the ambit of Article 39 which regulates changes to buildings, in case the relevant project obtains a certificate from the Armed Forces Engineering Authority.   [1]  Presidential Decree No 23/2015 amending the Construction Law, Official Gazette, Issue No. 16 (bis) (b), 20 April 2015. [2] Construction Law No. 119/2008, Official Gazette, Issue No. 19 (bis) (a), 11 May 2008.
On the 20th of April 2015, a presidential decree was issued[1] amending some provisions of the Egyptian Construction Law.[2] The amendments revolve around recognizing and expanding the powers of the Armed Forces Engineering Authority, an entity with a wide range of engineering and urban planning related responsibilities. The mandate of the Authority includes - among other things: contributing to enhancing development, responding to natural disasters and domestic crises, participating in the construction of infrastructure projects, roads and bridges and schools, participating in tourism development, and in providing economic and distinguished housing for all authorities and syndicates, general planning of cities and establishment of Bedouin villages and Nubians houses. This shows the expansive and diverse powers given to the Armed Forces Engineering Authority. The recent amendment to the Construction Law stipulated that the Armed Forces Engineering Authority should be considered the competent administrative body for planning, regulating and implementing projects in strategic areas of military importance or areas owned by the armed forces. Previous versions of the Law gave the same powers to many public authorities and bodies, such as: the Industrial Development Authority with regards to industrial areas, and the Tourism Development Authority with regards to touristic areas. Consequently, the powers given to the Armed Forces Engineering Authority over such lands conforms with this general trend. In addition, the new amendments stipulated that the terms and conditions of the regulation of construction work are applied to strategic areas or lands owned by the armed forces, and national projects implemented in accordance with decisions made by the cabinet. However, the amendments added a new article that makes an exception to national projects implemented by the Armed Forces Engineering Authority from the provisions of article 39 which stipulates that: it is not allowed to build, expand, or add other floors to any building except after obtaining a license from the competent administrative body of planning and organization. The exception only applies provided these projects have been proven to be safe and are carried out in accordance with construction specifications as per a certificate issued by the Engineering Authority itself.
The Construction Law regulates other activities, such as specifications of advertisements and banners. It also goes beyond pre-construction and construction phases, regulating the post-construction phase, which includes maintenance and demolition.
Background on Construction Law No. 119 of 2008
The Construction Law, known as the "Unified Construction Law", was issued in 2008 and is concerned with the organization of urban planning, construction work, and the preservation of real estate. The Law also specified the places where construction of buildings is prohibited, the competent authorities implementing its provisions, and which is responsible for regulating the construction process in Egypt, the law also mandates the General Authority for Urban Planning to be responsible for drawing up the general policy of planning and urban development. The Law stipulated the establishment of a Supreme Council for Planning and Urban Development, which is headed by the Prime Minister, with membership made up of relevant ministers, heads of public authorities working on urban development, and relevant experts. The Supreme Council is concerned with the following, among other things: 1) Adoption of the general objectives and policies of planning and urban development on the national level; 2) Coordination between ministries and bodies concerned with urban development to furnish and implement the approved plans; 3) Identification of distinguished areas, approval of standards, implementation mechanisms and sources of funding; 4) Providing legal opinion on any relevant draft law; 6) Compilation of all essential requirements needed to obtain licenses set forth in various laws and decisions. The Construction Law regulates other activities, such as specifications of advertisements and banners. The Law specifies terms and conditions for obtaining the licenses, as well as places where the erection of advertisements is permitted. It has devoted a full chapter to regulate the construction works in general; including terms, conditions, fees, and documents needed to obtain construction permits, as well as the follow up procedures and inspections to secure safety of buildings, and to ensure the fulfilment of license requirements. The Law goes beyond pre-construction and construction phases, regulating the post-construction phase. Chapter 4 regulates the preservation of real estate wealth, by organizing a Union of Occupants, maintenance and renovation of buildings, and the demolition of dilapidated facilities. The Law also regulates appeals and challenges to decisions issued by the administrative authorities. Finally, Chapter 5 of the Law stipulates penalties including the following:
  • Fines ranging from EGP 50,000 to EGP 200,000 for introducing unapproved changes to a certified land division.
  • Imprisonment for a period not exceeding five years, or a fine ranging from twice to three times the value of the violation, on any person constructing, extending, adding new floors, modifying, strengthening, repairing, or demolishing buildings without obtaining necessary licenses from the competent administrative authority.
  • Imprisonment for a period of not less than six months, and/or a fine ranging from twice to three times the value of the violation, with a minimum of EGP 50,000, for any person who constructs buildings without following technical specifications, commits fraudulent acts in the use of building materials, or uses materials not conforming to specifications. If this act results in total or partial demolition of the building or affects its integrity, the penalty shall be imprisonment for a period of not less than six months, and/or a fine ranging from twice to three times the value of the violation. If the act caused the death of one or more persons, or injury leading to disability of more than three, or if the violating act was linked to forgery or use of forged document, the penalty shall be imprisonment for not less than one year and not more than ten years, and/or a fine ranging from twice to three times the value of the violation.
Penalties in the Construction Law are imposed without prejudice to any more severe penalties stipulated in another law. In addition to these penalties, other administrative penalties are stipulated, such as writing off the architect, implementation supervisor, or contractor, from the records of the Syndicate of Engineers, or records of the Federation of Contractors, for a period not exceeding two years. In the case of repetition, write-offs shall be for a period not less than twice the duration of imprisonment. In all cases, the verdict shall be published in two widely circulated daily newspapers at the expense of the convicted person.
Conclusion
The importance of the Construction Law is amplified due to current housing problems, as well as in view of the great expansion of the real estate market and increasing trend towards mega-projects. This Law covers all issues related to the construction process beginning from licensing phase and ending with making the necessary maintenance of the property, the demolition of buildings, and the penalties for violators. The recent amendments to the Law have addressed one point which is the inclusion of Armed Forces Engineering Authority within the bodies responsible for planning and construction in certain areas such as land owned by the armed forces, or national projects carried out by the Authority based on a decree issued by the Cabinet of Ministers. On the other hand, the amendments excluded national projects from the ambit of Article 39 which regulates changes to buildings, in case the relevant project obtains a certificate from the Armed Forces Engineering Authority.   [1]  Presidential Decree No 23/2015 amending the Construction Law, Official Gazette, Issue No. 16 (bis) (b), 20 April 2015. [2] Construction Law No. 119/2008, Official Gazette, Issue No. 19 (bis) (a), 11 May 2008.