2019 08 November

Cambodia Legal Update: The Construction Law Has Been Promulgated by the Royal Krorm

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Following approval by the Council of Ministers on 30 August 2019, the National Assembly of Cambodia on 8 October 2019 and the Senate on 18 October 2019, the Law on Construction has now been promulgated by the Royal Krorm No. NS/RKM/1119/019 dated 2 November 2019.

This new law contains 22 chapters and 111 articles and aims to regulate the construction sector and implement adequate technical and safety standards on construction sites throughout Cambodia.

This law establishes a regulatory framework to ensure quality, security, safety and greater efficiency across this sector. Under the law, the Ministry of Land Management, Urban Planning and Construction (“MLMUPC”) remains the competent authority to oversee and manage the construction sector. The Construction Law will be further clarified by forthcoming Sub-Decrees and Prakas to guide its implementation. The MLMUPC is currently working on these new Sub-Decrees and Prakas.

The law includes various provisions related to construction authorization and construction site inspections. For example, any construction including repair, modification, installation or demolition work must have obtained prior approval from the competent authority before such work begins. The new law also retains the obligation to obtain a construction site opening permit prior to commencing construction and site closing permit upon completion.

The law features new provisions such as (i) the obligation upon the owner to obtain an occupancy certificate, (ii) the defect liabilities and (ii) conducting quality and safety inspections of all buildings (within a period of every five years for a non-residential building and ten years for a residential building).

Acknowledging that many buildings are currently not in compliance with the Law’s provisions, this Law provides a two year ‘grace’ period to building owners to allow them enough time to make any necessary changes and enter into compliance with the Construction Law.

Owners of any existing constructions built without the necessary permits or non-compliant construction work before enforcement of the Construction Law shall apply for an occupancy certificate within two years from the Law entering into effect.

The Law on Construction entered into force on 3 November 2019.


The information provided here is for information purposes only and is not intended to constitute legal advice. Legal advice should be obtained from qualified legal counsel for all specific situations.


DFDL Contacts

Guillaume Massin

Partner & Cambodia Managing Director

guillaume.massin@dfdl.com

Charles Amar

Head of Cambodia Real Estate Practice

charles.amar@dfdl.com


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