Sub-decree No. 225 on Conditions and Procedures of Construction Inspection and Certification

 BUN & ASSOCIATES REAL ESTATE ALERT

January, 2021

On 30 December 2020, the Royal Government of Cambodia issued Sub-decree No. 225 on Conditions and Procedures of Construction Inspection and Certification (“Sub-decree No. 225”) to regulate the construction inspection and certification (or as provided under the Law on Construction dated 02 November 2019 (“Construction Law”), the “certification work” or “certification” and the application and issuance of certification business license. For the avoidance of doubt, all kinds of construction work are required to be certified unless otherwise stated in a separate regulation, and for the private sector, only a licensed certifier under Sub-decree No. 225 is allowed to conduct certification work.
 

Here are key highlighted provisions of Sub-decree No. 225:
a. Certification business license is divided into 4 categories, namely (i) general certification license, (ii) architectural certification license, (iii) structural certification license, and (iv) mechanical, electrical and plumbing certification license; and such licenses are issued by the Minister of the Ministry of Land Management, Urban Planning and Construction (“MLMUPC”). Each category of the licenses is divided into different grades of license. Only legal entities can apply for a general certification license, except the last grade (i.e. grade 3), whereas the other 3 categories of license shall be applied by an individual professional (i.e. engineer or architect).
 

b. Certification work is required to be conducted on (1) the design documents (more specifically the technical documents) before obtaining a construction permit for the construction, (2) the construction during the construction phase, (3) the completed construction prior to obtaining a certificate of occupancy, (4) construction equipment with regular inspection on quality and safety standards, and (5) dangerous construction which imposes a risk to the public interest or property damages, as requested by competent authorities.
 

c. The certifier shall comply with the building technical regulations and spatial and urban regulations during the certification work, and submit a report regarding their certification business to the MLMLUPC on an annual basis.
d. Foreign engineers or architects are allowed to be the technical director of the licensed certifier entity or apply for an individual professional’s certification business license. However, foreign engineering or architectural companies that wish to conduct certification work in Cambodia must first be registered with the Ministry of Commerce.
 

e. Violations of Sub-decree No. 225 shall be penalized according to the Criminal Code dated 30 November 2009, or a suspension or revocation of certification business license.
 

f. Applicants to the certificate business license shall obtain professional indemnity insurance, otherwise, the applicant shall deposit an amount with in the national treasury to insure certification work liability according to the type of the certificate business license, and the MLMUPC has the right to freeze such deposit in the event of a dispute between the certifier and employer of the certification work.

In full: https://www.bun-associates.com/real-estate-alert-sub-decree-no-225-on-conditions-and-procedures-of-construction-inspection-and-certification/

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