Following approval by the Council of Ministers on 30 August 2019, the National Assembly of Cambodia approved the law on Construction on 8 October 2019.
The 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 in order to ensure quality, security, and safety, and more generally to boost efficiency in this sector. Under the law, the Ministry of Land Management, Urban Planning and Construction (“MLMUPC”) remains as the competent authority to oversee and manage the construction sector. The Construction Law will be further clarified by forthcoming Sub-Decrees and Prakas for its implementation.
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 commences. The new law also retains the obligation to obtain a construction site opening permit prior to starting construction.
The new law includes new provisions such as (i) the obligation for the owner to obtain an occupancy certificate or (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 owners of buildings to allow enough time for them to rectify their status and enter into compliance with the Construction Law.
Owners of any existing construction built without the necessary permit or construction work not in compliance prior to enforcement of the Construction Law shall apply for an occupancy certificate within two years from the Law becoming effective.
The Construction Law will now be reviewed by the Senate before being signed into law by the King of Cambodia.
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.
Partner & Managing Director
Head of Cambodia Real Estate Practice