In today's article from the series "Tuesday Mornings for Construction Workers," we continue our analysis of the scope of responsibilities of participants in the construction process, this time focusing on presenting the role of the investor.
The construction process is a complex undertaking, requiring both technical precision and strategic management of finances, human resources, and materials. The investor is a key player in the construction process, not only initiating it but also key to the success of the entire project. Therefore, today we will take a closer look at their responsibilities and the challenges they face at various stages of project implementation.
There is no legal definition of an investor. Therefore, to put it simply, a construction investor is a natural or legal person who allocates funds for construction and on whose behalf the entire investment is carried out. It's also worth remembering that, as a participant in the construction process, the investor does not have to be the land owner, but they must have a permit to carry out the investment from the owner. It is the investor who must obtain a building permit or submit a construction work notification. The investor's details must also be listed on the construction site board.
The investor's obligations, listed in Article 18 of the Construction Law, include organizing the construction process, taking into account the safety and health protection principles contained in the regulations, and in particular ensuring:
- development of a construction design and, where appropriate, other projects (e.g. detailed designs);
- taking over the construction management by the construction manager;
- developing a health and safety plan;
- execution and acceptance of construction works; in cases justified by the high degree of complexity of construction works or ground conditions, supervision of the execution of construction works by persons with appropriate professional qualifications.
Moreover, the investor may appoint an investor's supervision inspector at the construction site and may also oblige the designer to exercise author's supervision, unless the competent architectural and construction authority has previously imposed the above obligation on the investor in the decision on the building permit.
When conducting construction work on a historic monument, the investor is obligated to obtain the appropriate permits, notifications, or conservation agreements. Furthermore, the investor is also responsible for ensuring that construction work on an immovable monument entered in the register is managed and supervised by individuals who meet the requirements of Article 37c of the Act on the Protection and Care of Monuments (i.e., individuals with construction licenses specified in the Building Law and who have participated in construction work on immovable monuments entered in the register or the inventory of a museum or cultural institution for at least 18 months).
Further obligations of the investor arise from Article 42 of the Construction Law. According to this provision, the investor is obligated to:
- ensure the preparation of a technical design (with exceptions arising from the Act) in the case of: (a) construction works covered by a building permit decision, (b) construction referred to in Article 29, paragraph 1, points 1–4 of the Building Law, (c) reconstruction referred to in Article 29, paragraph 3, point 1, letter a of the Building Law, (d) installation referred to in Article 29, paragraph 3, point 3, letter d of the Building Law;
- appoint a construction manager in cases required by the Construction Law – e.g. such an obligation may be excluded by a decision of the architectural and construction administration body if it is justified by the insignificant degree of complexity of the construction works or other important reasons,
- appoint an investor’s supervision inspector – also in cases specified by the Construction Law or when it results from the decision on the building permit;
- provide the construction manager with the construction design, including the technical design, if required.
The investor must notify the relevant administrative authorities (district or provincial building inspector) and the designer supervising the construction project of the planned commencement date for construction works requiring a building permit, at least seven days prior to commencement. This notification should include a written declaration from the construction manager confirming the preparation of a health and safety plan and acceptance of construction management responsibility. Additionally, a certificate of the construction manager's entry on the list of members of the relevant professional self-government chamber is required, authorizing them to perform independent technical functions in construction. If investor supervision has been established, a declaration from the investor's inspector confirming their acceptance of the responsibility for supervising the construction works (along with a certificate of entry on the list of members of the relevant chamber) must be attached. Pursuant to Article 41, Section 4 of the Construction Law, the investor must also provide information regarding occupational health and safety, which will be posted on the construction site by the construction manager.
Along with the notification of commencement of construction work, the investor, when reporting to the relevant authority issuing the building permit, requests a construction log, which is an official document detailing the progress of construction work and the circumstances and events occurring during the construction process. Currently, this log can be issued in electronic format.
In summary, the construction investor plays a key role in the construction process, allocating their financial resources to the project. The investor is a fundamental element of every construction project. Their commitment, decisions, and management skills directly impact the project's success. This is why it's crucial that the investor is well-prepared for their role and aware of all their responsibilities and rights in the construction process.
This article is for informational purposes only and does not constitute legal advice.
Legal status as of August 12, 2024
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