Construction Guide

The purpose of this construction guide is to analyse the current challenges encountered within Uzbekistan's construction industry. This guide will separately assess the organisation of the construction industry, trends and legislative requirements, as well as concerns regarding construction norms and quality, construction plan development, and permission procedures.

Licensing requirements

Pursuant to Uzbek law, certain types of construction work fall under the category of licensable activities. Depending on the type and category of the objects under construction (for example bridges, tunnels, military buildings, buildings involving high risk and potential danger, high altitudes, telecommunication networks, etc.) applicants must apply for a licence from the commission for the monitoring of the implementation of construction reforms and licences. In addition to the construction itself, activities such as the design of construction planning documents and the expert examination of construction objects must be duly licensed by the state committee on architecture and construction.

In Uzbekistan, licences in the construction industry can only be issued to legal entities that are duly registered under the jurisdiction of Uzbekistan. In cases in which foreign companies are contracted to either design construction projects or carry out construction works that require licences, they must ensure the establishment of their local presence in Uzbekistan as foreign companies cannot generally be licensed.

Each stage, including the design, construction, transportation, installation and commissioning stages, is subject to various approvals, consents and permits. Therefore, it is important that when signing agreements parties clearly agree on their responsibilities relating to the obtainment of permits and licences for certain activities.

Design

Designing architectural and town planning documents is a licensed activity that cannot be performed by a foreign legal entity. Such licences can only be issued to local legal entities with full-time employees and no less than 5 years' relevant previous experience. Even in these cases, first time applicants will not be issued licences for the design and planning of construction documents for works that are categorised as higher than I-II in difficulty. As a matter of general practice, foreign design and engineering companies draft the design, which is then approved by one of the locally licensed design institutions.

The design stage consists of two major parts: 'project documentation' and 'working documentation'. These are often translated as 'basic design' and 'detailed design', but the meaning of these terms is different from in Europe or the United States. Once developed by the contractor, the project documentation must be approved by the customer and then filed for the review of the state expert authority. Only once a positive expert review has been granted may the customer apply for a construction permit. It is highly advisable that a foreign contractor entering the market for the first time liaises with local design institutions in order to gain a deeper understanding of the scope of the design work and its requirements.

Public tenders

All public procurements of materials, components, equipment and services are subject to special tender procedures. In Uzbekistan, construction projects funded by the state budget, the finances of state enterprises, non-budgetary funds of public organisations, state and non-budgetary funds provided by financial institutions under the guarantee of the Uzbek government must go through public tenders. However, it should be noted that in exceptional...

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