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The New Building Act 2024: A Revolution in Utility Connection Permitting, or Just an Apparent Simplification?

The main legislative change is the new categorization of utility connections. Water and sewage connections up to 25 meters in length are now considered minor structures. In practice, this means you no longer need a permit from the building authority for their implementation, such as the previously required zoning consent. This is a fundamental departure from previous practice.

However, it is necessary to distinguish—connections longer than 25 meters fall into the category of simple structures and still require a permit from the building authority. This threshold is crucial for proper project planning and choosing the right procedure.

The Paradox of Simplification: Why is the Process More Complicated Than Before?

Although the Act promised simplification, its implementation has been accompanied by a number of problems that paradoxically complicate and prolong the entire process. Builders are facing uncertainty and the risk of delays.

Before the Act came into effect, building authorities were inundated with applications filed under the old, well-known rules, creating huge delays in processing them. At the same time, they are struggling with technical problems and insufficient training for working with the new digital Builder's Portal. Moreover, the Act allows authorities to double the processing deadlines during the transitional period, which completely negates the originally intended acceleration.

What Remains Unchanged: Obligations That Cannot Be Ignored

Even for connections up to 25 meters, which are formally permit-free, a number of obligations remain, the neglect of which can lead to serious legal and financial consequences. It is still essential to secure:

• Project documentation: Prepared by a certified engineer.

• Consent from the grid operator: A positive statement from the operator of the water, sewage, or electricity network is absolutely crucial.

• Marking out existing networks: Before starting excavation work, all underground networks must be professionally surveyed to prevent damage.

• Consent from neighbors: If the connection route comes within 2 meters of a neighboring property line, their written consent is required.

In the current uncertain situation, officials are more cautious and require absolutely flawless and complete documentation. Therefore, although the process is simpler on paper, the demands on the precision of preparation by the investor have actually increased. 

At ARROWS, we specialize in preparing complete documentation that will protect your investment from unnecessary delays. For an immediate solution to your situation, write to us at consultation@arws.cz.

The Principle of Legality: Why a Building Authority Cannot Act "Just Practically"

Many investors encounter a situation where their logical and practical request is met with a lack of understanding from an official. The reason is the principle of legality—one of the pillars of Czech public law, which limits the powers of administrative bodies, including building authorities.

What Exactly Does the Principle of Legality Mean?

Simply put, a building authority may only do what the law explicitly commands or permits. It cannot create its own rules or act outside the legal framework, even if it seems to be the most reasonable solution in a given situation. This principle, enshrined in the Constitution of the Czech Republic and the Administrative Procedure Code, is in direct contrast to the rights of private individuals and companies, who can do anything that is not prohibited by law.

Administrative Discretion and Protection of Good Faith

Within the law, the authority has some room for administrative discretion—that is, the ability to choose the most suitable option from several solutions provided by law.

However, this does not mean it can create a completely new solution or grant an exception that the law does not recognize.

Another important principle is the protection of good faith, according to which the authority should protect rights that people have acquired in good faith. However, the case law of the Supreme Administrative Court repeatedly confirms that the principle of legality is superior to this principle, especially if the law would be violated.

Practical Impact on Your Project

How do these principles manifest in practice? Imagine you need to build a 30-meter water connection (a simple structure requiring a permit) before the main building project is approved. For you, this is a practical necessity. However, an official, bound by the principle of legality, sees that the law requires a permit for a specific construction project. If the main building project does not formally exist or is not approved, the official may conclude that there is no legal basis for permitting the connection as a separate structure. This creates a conflict between your practical need and their legal constraints.

Strategic Procedure for Permitting Connections Before the Main Construction

The key to success is not to convince the official to act "practically," but to provide them with documentation that makes permitting your connection the only possible legal step. This requires precise legal and technical preparation.

Step 1: Flawless Project Documentation as the Foundation

The foundation of everything is complete and accurate project documentation. It must clearly define the connection as a separate structure or as the first, separate stage of the entire construction project. This gives the authority a clear and legally defensible subject for the proceedings. Any deviation from the certified documentation can be grounds for an order to remove the structure in the future, as confirmed by extensive court case law.

Our lawyers at ARROWS will ensure a legal review of your project documentation to prevent future disputes and ensure its smooth approval by the authorities. For an immediate solution to your situation, write to us at consultation@arws.cz.

Step 2: Proactive Negotiations with Grid Operators and Affected Authorities

Before you even approach the building authority, obtain all necessary statements from grid operators (water companies, ČEZ, GasNet, etc.) and other affected authorities (e.g., the transport department). Although the new Act allows the building authority to request these statements itself, this is a trap—while waiting for the statements, the deadline for issuing a decision is suspended, and the entire process is significantly prolonged. Submitting a complete file with consents already secured is a sign of your professionalism and will speed up the entire procedure.

Step 3: Correct Application Submission – The Key to Success

Your application must be formulated to comply with the law and provide the official with a legal basis for issuing the permit. Instead of an informal request for a "practical approach," you must submit a formal application for a permit for the connection as a separate structure, or as a construction site facility if the nature of the project allows. This way, you are not asking the official for an exception, but requesting them to act in accordance with the law based on your perfectly prepared documentation.

At ARROWS, we will prepare a complete application and all legally required documents for you, so the building authority has no reason to reject your application. Contact us at consultation@arws.cz and get a tailored legal solution.

Risks and Penalties: What are the Consequences of an Incorrect Procedure?

Proceeding without a proper legal framework is extremely risky for any development or investment project. The consequences can be fatal not only for the schedule but also for the entire project budget.

The Biggest Threat: "Unauthorized Construction"

A connection built without the necessary permit or in violation of it is considered unauthorized construction. In such a case, the building authority will initiate proceedings for the removal of the structure.

Furthermore, the new Building Act has significantly tightened the conditions for retroactively permitting (legalizing) such a structure. For example, if the construction requires an exemption that you did not secure in advance, its retroactive permit is practically impossible.

Financial and Time Losses

In addition to the costs of removing the structure itself, which are borne entirely by the builder, there is a risk of high fines for the committed offense. The biggest loss, however, is time. A dispute over a connection can block the entire main project for months or even years, leading to huge financial losses due to contractual penalties, unused capacity, and missed business opportunities.

Specific Threats in Permitting Connections

International Projects and Foreign Investors in the Czech Republic

For foreign investors, the challenges associated with the new Building Act are compounded by a lack of familiarity with the local legal environment and administrative customs. Additionally, they may be subject to another layer of regulation in the form of the Foreign Direct Investment (FDI) Screening Act, especially if the project concerns critical infrastructure.

ARROWS International: Your Local Advantage on a Global Scale

It is precisely for these cases that we have spent more than ten years building our international network, ARROWS International. Thanks to it, we are able to provide seamless legal services to clients from all over the world while also helping Czech companies with their expansion abroad. We provide a single point of contact in the Czech Republic that coordinates all legal steps in dozens of countries.

Thanks to our ARROWS International network, built over more than a decade, we provide legal services for development projects with an international element on a daily basis. Whether you are investing in the Czech Republic or expanding from the Czech Republic abroad, we are your reliable partner. For a consultation on your international project, write to us at consultation@arws.cz.

Comprehensive Legal Services from ARROWS: Your Certainty in Construction Proceedings

Our services do not end with obtaining a single permit. We are a partner for the entire life cycle of your project. Our extensive experience, based on a portfolio of over 150 joint-stock companies, 250 limited liability companies (s.r.o.), and 51 municipalities and regions, allows us to provide fast and high-quality services. Our comprehensive service includes:

• In-depth legal due diligence of land and project companies.

• Preparation and review of contractual documentation (including FIDIC standards and planning agreements).

• Representation in all phases of the permitting process (zoning, building, and final inspection proceedings).

• Representation before courts and administrative authorities in case of disputes.

• Expert training for your management and employees.

Furthermore, we actively connect our clients when we see interesting business or investment opportunities. We are more than just lawyers—we are your strategic partners.

Strategic Risks of a Development Project

Focus on Your Business - Leave the Legal Details to Us

Permitting construction, especially in the current transitional period, is a complex discipline fraught with risk. Collaborating with ARROWS brings you not only top-tier legal expertise but, above all, a strategic advantage, certainty, and the peace of mind you need for the successful implementation of your business plans.

Whether you are dealing with a permit for a single connection or preparing a large-scale development project with an international scope, we are here for you. Contact us at consultation@arws.cz for a no-obligation initial consultation and find out how we can protect and support your investment.