28 November 2019

Newly approved construction law to set out standards for Construction and Real Estate Sectors in Cambodia

On 8 October 2019, the much-anticipated construction law was approved by the National Assembly of Cambodia, after having received the approval from the Council of Ministers at the end of August. It has since been promulgated by the King of Cambodia on 2 November 2019.

The main objectives of this new law are to boost an effective development of construction and real estate industry by enhancing safety standards, quality of construction and strengthen management in the construction sector, among others.

The law has 22 chapters and 111 articles in total. As stated in this law, the authority to oversee and manage the construction sector remains under the Ministry of Land Management, Urban Planning and Construction. The law includes provisions requiring construction works to obtain approval from the relevant authorities prior to any construction activities such as installation, demolition, repair and other maintenance.

The new provisions issued under this law also make it obligatory for the owner to obtain a certificate of occupancy and conduct safety and quality inspections on all of their constructions (every five years for non-residential buildings and 10 years for residential buildings). Furthermore, permits for construction works are still required to open construction sites prior to the commencement of construction.

A two year transition period is given from the effective date of the construction law in order to allow enough time for owners to obtain the necessary permits and certificates and to ensure compliance of all their buildings in accordance with the construction law. Further implementation instruction on the construction law will be clarified in subsequent sub-decrees and Prakas to be released later.

If you have any questions or require any additional information, please contact Mr. Lim Veasna and Mr. Matthew Rendall of SokSiphana&associates (a member of ZICO Law)