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Bulgarian Chamber of Builders Act
Last update: 2008-08-21 03:21:20
Chapter One
GENERAL PROVISIONSArticle 1. This act shall define the requirements for persons who perform construction works, as well as the structure and the activities of the professional organization of builders.
Article 2. The act aims to create conditions for:
1. Identification and transparency of the activities of persons who perform construction works;
2. Improved management of construction activities, increasing the responsibility of builders to comply with the essential requirements to construction sites and the quality of building structures;
3. Protection of the interests of construction service users.
Article 3. (1) This act shall apply to Bulgarian and foreign natural and legal persons registered as traders under their domestic legislation, their branches, state and municipal undertakings which perform construction works in the Republic of Bulgaria, hereinafter referred to as "builders".
(2) Builders constructing category one to five buildings under Article 137, Para. 1 of the Spatial Development Act or particular types of construction and assembly works as indicated in the "Construction" Section of the National Classification of Economic Activities shall be subject to entry into the Central Register of Professional Builders hereinafter referred to as "the register".
(3) When natural or legal persons unite to develop a construction project or to perform specific types of construction and assembly works, as described in Para. 2, at least one of the participants in the consortium must be entered in the register.
(4) Participation in a consortium, as described in Para. 3, shall not entitle persons not entered in the register to carry out construction works or specific construction and assembly works as described in Para. 2, independently. Chapter two
CHAMBER OF BUILDERS Article 4. (1) A chamber of builders, hereinafter referred to as "the Chamber" shall be established as a legal person with its head office in Sofia. The Chamber shall establish regional structures under the conditions and procedures set out in the statutes.
(2) The Chamber of Builders:
1. Shall represent its members and protect their professional interests;
2. Shall create and maintain a Central Register of Professional Builders;
3. Shall take part in drafting strategies, analyses and programmes for the development of the construction industry and shall assist in their implementation;
4. Shall issue standpoints and take part in the drafting of legislation in the field of construction;
5. Shall assist in the development of health and safety at work standards for the construction industry and shall submit them to the National (Sector) Council on Working Conditions;
6. Shall develop a code of professional ethics with regards to the branches of the construction industry and shall prevent monopolist practices, unfair competition and inequality among its members;
7. shall develop guidelines on the implementation of construction and assembly works and on good construction practices, risk analysis models and systems and rules designated for control and self-control to ensure safety and quality of construction project works and, in particular, of construction and assembly works, as well as on the physical protection of cultural monuments in the course of construction and repair activities;
8. shall notify the competent authorities about any malpractice in the implementation of on-site construction and assembly activities and about other infringements on the part of persons taking part in the construction process in the course of and on the occasion of their performance or non-performance of functional duties as regulated in the respective legislative acts;
9. Shall organize courses to increase the level of qualification of construction industry personnel;
10. Shall perform other functions as prescribed in the statutes.
Article 5. Membership of the Chamber shall be voluntary and in accordance with the requirements set out in this act and in the Statutes of the Chamber.
Article 6. The bodies of the Chamber shall comprise the General Assembly, the Managing Board, the Control Council and the Central Register of Professional Builders Commission.
Article 7. (1) The General Assembly of the Chamber shall be convened on a regular or extraordinary basis.
(2) Regular meetings of the General Assembly shall be convened annually.
(3) An Extraordinary General Assembly may be convened by a decision of the Managing Board or on the demand of at least one tenth of the members of the Chamber.
Article 8. (1) The convening procedure and the regulations on work and decision making of the General Assembly shall be defined in the Statutes of the Chamber.
(2) The delegates to the General Assembly shall be nominated under the conditions and procedures defined in the Statutes of the Chamber.
Article 9. The General Assembly shall be valid if two thirds of the delegates are present. In the absence of a quorum, the General Assembly shall be postponed by one hour, after which it shall be conducted and considered as valid irrespective of the number of delegates present.
Article 10. (1) The General Assembly:
1. Shall adopt, amend and supplement the Statutes;
2. Shall elect and dismiss the Chairpersons and members of the Managing Board and Control Council and of the Central Register of Professional Builders Commission;
3. Shall approve reports on the activities of the Managing Board and Control Council and of the Central Register of Professional Builders Commission;
4. Shall determine the amount of the membership fee and the prices of services provided by the Chamber;
5. Shall approve the budget of the Chamber;
6. Shall approve the Code of Professional Ethics;
7. Shall resolve other issues in accordance with the Statutes.
(2) Decisions of the General Assembly shall be approved by the simple majority of those present, with the exception of decisions under Para. 1, item 1, which shall be approved by the qualified majority of two thirds of those present.
(3) The Chairpersons and the members of the Managing Board and the Control Council shall be elected by secret ballot.
Article 11. (1) The Managing Board shall comprise a chairperson and twenty-eight members elected for a term of three years.
(2) The Managing Board:
1. Shall convene and organize the General Assembly of the Chamber;
2. Shall organize the activities of the Chamber;
3. Shall manage the property of the Chamber;
4. Shall organize the creation and maintenance of the Central Register of Professional Builders;
5. Shall approve internal working regulations;
6. Shall accept new members and discontinue membership of the chamber under the conditions and procedure set out in the Statutes;
7. Shall perform other functions assigned to the Managing Board by the General Assembly or the Statutes of the Chamber;
8. Shall submit an annual report on its activities to the General Assembly.
Article 12. (1) The Control Council shall comprise a chairperson and six members elected for a term of three years. The Chairperson of the Control Council may attend meetings of the Managing Board with advisory powers.
(2) The Control Council:
1. Shall control the implementation of the decisions taken by the General Assembly and shall verify the lawfulness of the Managing Board's decisions;
2. Shall submit proposals to the General Assembly for the dismissal or non-dismissal from duty of members of the Managing Board;
3. Shall perform other functions assigned to it by the General Assembly or the Statutes of the Chamber;
4. Shall submit an annual report on its activities to the General Assembly.
Article 13. (1) The budget of the Chamber shall be determined for each fiscal year.
(2) The income of the Chamber shall comprise the following:
1. Lump sum affiliation fees;
2. Annual membership fees;
3. Income from services provided by the Chamber;
4. Donations, publishing activities and other income. Chapter three
CENTRAL REGISTER OF PROFESSIONAL BUILDERS Article 14. (1) Builders shall be entered into the Central Register of Professional Builders according to building categories (e.g. buildings of Category 1, buildings of Category 2, buildings of Category 3, 4 & 5), as well as according to specific construction and assembly works under Article 3, Para. 2, for the construction of which the builder shall prove that he or she meets the requirements set out in this act.
(2) Low-rise residential and mixed-designation buildings, villas and structures under Article 137, Para. 1, item 5, letters "c" and "d" of the Spatial Development Act may be constructed by builders who are not entered in the register.
(3) Builders entered in the register for the construction of category one buildings and holding a certificate for them may construct buildings of all categories.
(4) Builders entered in the register for the construction of category two buildings and holding a certificate for them may construct buildings of all categories except category one.
(5) Builders entered in the register for the construction of category three, four and five buildings and holding a certificate for them may only construct buildings of the categories indicated.
(6) Builders entered in the register for the implementation of particular types of construction and assembly works under Article 3, Para. 2 and who hold a certificate for them may only carry out the activities for which they have been entered in the register.
(7) The register entry and the maintenance procedure shall be specified in regulations adopted by the General Assembly of the Chamber, which shall be promulgated in the State Gazette.
Article 15. (1) Builders shall be entered into the register when they meet the following requirements:
1. They do not have public tax obligations payable in cash or obligations to pay compulsory insurance contributions or interest related to such obligations, unless the competent authority has sanctioned rescheduling or deferment of the obligations;
2. They have not been declared insolvent and are not involved in insolvency or liquidation procedures;
3. They have the required technical equipment at their disposal to carry out the stated construction and assembly works;
4. They have the necessary personnel at their disposal, employed under labour contracts:
a) To implement technical management of the construction projects;
b) To exercise control over the quality of the performed construction and the compliance of the building products employed in the structures with the essential safety requirements;
c) To monitor compliance with health and safety at work regulations;
d) To organize crisis management activities;
e) Including other persons required by law to be employed under labour contracts.
5. They employ technical personnel with the necessary qualifications in accordance with their specialization and level of education and qualifications, professional experience, knowledge and technical competence with regard to the domestic legislation;
6. They employ workers with the necessary professional qualifications to carry out the construction activities;
7. They have valid insurance for damage which may arise as a consequence of non-performance of their obligations as required under acting legislation.
(2) For the construction of category one buildings, builders shall be entered into the register who, in addition to the requirements under Para. 1, meet the following conditions:
1. The average listed numbers of personnel during the preceding year shall be no less than 50 persons;
2. Net sales income for the preceding year shall be no less than BGN 3,000,000 ;
3. The balance sheet value of the tangible fixed assets for the preceding fiscal year shall be greater than BGN 500,000.
(3) For the construction of category two buildings, builders shall be entered into the register who, in addition to the requirements under Para. 1, meet the following conditions:
1. The average listed numbers of personnel during the preceding year shall be no less than 30 persons;
2. Net sales income for the preceding year shall be no less than BGN 1,500,000 ;
3. The balance sheet value of their tangible fixed assets for the preceding fiscal year shall be greater than BGN 200,000.
(4) For construction work on project sites under Article 137, Para. 1, item 1, letter "m" and Article 137, Para. 1, item. 2, letter "h" of the Spatial Development Act, builders shall be entered into the register who meets the requirements under Para. 1, have experience in the restoration and protection of cultural monuments and have a specialized qualified architect among their staff.
(5) The requirements stipulated in paras. 2 and 3 shall not apply to builders entered in the register solely for the construction of sites under Para. 4.
Article 16. (1) The Central Register of Professional Builders shall be accessible to the public and shall be published on the Internet site of the Chamber. All persons shall be entitled to make reference to entries in the register.
(2) Information representing personal data shall be provided in accordance with the law.
(3) The register shall contain information on the following:
1. The legal form of the organization, the name of the commercial company, the head office and management address and the registration details of the builder in accordance with the legislation in force where the builder is registered;
2. The management structure and form of representation and the persons who represent the builder;
3. The numbers and qualifications of employed persons;
4. The number of persons employed under labour contracts: separately for technical supervisors and for persons responsible for compliance with health and safety of work regulations.
5. Training and qualification courses for technical personnel and workers conducted during the past three years;
6. Machines, installations and equipment owned by the builder by type, number and technical specifications;
7. The rights of the builder and his or her workers to carry out construction works related to the construction and exploitation of dangerous installations;
8. Construction projects completed during the last three years by type, location and amount of construction works expressed as a value;
9. The annual financial reports of the builder for the last three years prior to the current year;
10. Tax obligations and obligations to pay compulsory insurance contributions;
11. Penalties imposed on the builder by the control authorities for violations of the Spatial Development Act.
(4) Builders who have carried out activities over a period shorter than three years since they were established shall provide the information under Para. 3, items 5, 8 and 9 relating to the last year of their activities.
Article 17. (1) Applications for entry shall be submitted to the Chairperson of the Commission described under Article 26 using a form approved by the Managing Board of the Chamber.
(2) The following documents shall accompany applications for entry:
1. A certificate of entry into the trade register or a legalized document in accordance with the legislation on registration of builders;
2. A declaration that the builder has not been declared insolvent and is not involved in insolvency or liquidation procedures;
3. Documents (licences, certificates, etc.) authorizing the builder or his or her workers to carry out building works related to the construction or exploitation of dangerous installations;
4. Information on the number and qualifications of the various categories of personnel;
5. Information on qualification courses for engineering and technical personnel and workers conducted during the last three years, except in the cases stipulated in Article 16, Para. 4;
6. Information on the machines, installations and equipment owned by the builder for the implementation of construction works by type, number and technical specifications;
7. Information on the buildings constructed by the builder during the last three years by type and location of the buildings and the volume of construction works carried out, except in cases under Article 16, Para. 4;
8. Information on buildings completed as described under Article 137, Para. 1, item 1, letter "m" and Article 137, Para. 1, item 2, letter "h" of the Spatial Development Act, accompanied by a statement by the National Institute of Cultural Monuments regarding the quality of construction work in the cases stipulated under Article 15, Para. 4;
9. Copies of the annual financial reports of the construction undertaking for the last three years, except in the cases under Article 16, Para. 4;
10. A certificate issued by the competent authorities of the circumstances described in Article 16, Para. 3, items 10 and 11;
11. Copies of the insurance policies proving the availability of insurance coverage in accordance with Article 15, Para. 1, item 7.
Article 18. (1) The Commission described under Article 26 shall carry out entries or refuse to carry out entries in the register within 14 days of submission of entry applications.
(2) The Commission shall refuse entry when the builder does not meet one or more of the requirements set out under Article 15.
Article 19. (1) The certificate of entry or refusal of entry in the register shall be issued to the applicant within 15 days of submission of the application.
(2) The construction project categories and/or construction and assembly works which the builder is entered in the register as authorised to carry out shall be marked in the certificate described in Para. 1.
Article 20. (1) The builder shall declare for entry any change in circumstances subject to entry in the register within 14 days after the change has been effected.
(2) By 30 June every year the builder shall submit to the Commission described under Article 26 an annual financial report and a document certifying the presence or absence of obligations to the public sector for the preceding year.
Article 21. (1) A builder shall be deleted from the register in the following circumstances:
1. Discontinuation of the builder's legal person;
2. Non-performance of construction works for a period exceeding three years, except in cases when a foreign party does not operate on permanent basis in the Republic of Bulgaria;
3. Failure to meet the obligations stipulated in Article 20, Para. 1on more than three occasions in one year;
4. Failure to meet the obligations stipulated in Article 20, Para. 2;
5. Deletion of the entry of a natural person acting as a sole trader or when he or she is placed under judicial disability;
6. Entry into force of an insolvency ruling;
7. The fact is established that a builder no longer meets one or more of the requirements stipulated under Article 15;
8. Discontinuation of a state or municipal undertaking.
(2) Deletions from the register shall be carried out by a resolution of the Commission described under Article 26.
Article 22. (1) The register entry certificate of a builder shall be null and void following deletion of the builder from the register.
(2) After the expiry of one year following the deletion of a builder from the register, the builder may submit a new application for entry under the general procedure.
Article 23. Any refusal to make an entry in the register and to issue a certificate and any deletion from the register shall be duly justified and shall be subject to appeal under the procedures set out in the Administrative Procedure Code.
Article 24. (1) In the event of loss or destruction of a certificate of entry in the register, the builder shall be required to notify in writing the Chairperson of the Commission specified under Article 26 within 7 days.
(2) A duplicate of the certificate in cases described in Para. 1 shall be issued by resolution of the Chairperson of the Commission on the request of the builder.
Article 25. Entries, deletions or changes in circumstances entered in the register and the destruction or invalidation of register entry certificates shall be announced by the Chairperson of the Commission described under Article 26 in the information newsletter of the Chamber.
Article 26. (1) A Commission to manage maintain and use the Central Register of Professional Builders shall be created at the Chamber.
(2) The Commission shall comprise 15 members elected by the General Assembly of the Chamber.
(3) The organization and the activities of the Commission shall be governed by regulations endorsed by the Managing Board of the Chamber. Decisions of the Commission under Article 27, Para. 1, item 3 shall be adopted by a two thirds majority of the members.
(4) Meetings of the Commission shall be convened by the Chairperson or on a request, placed by more than half of its members.
Article 27. The Commission described under Article 26:
1. Shall provide information to builders about the conditions and procedures for entry into the register;
2. Shall prepare application forms and other documents related to entry into the register;
3. Shall take decisions on entries, deletions and refusals to make entries in the register;
4. Shall support the activities of the Managing Board in organizing the implementation of activities related to the security of classified information, crisis management and preparation for defence mobilization.
5. Shall draft and provide information and documentation requested by the competent authorities about circumstances entered in the register. TRANSITIONAL AND FINAL PROVISIONS § 1. (1) The conditions and procedures for convening and conducting of the Constituent Assembly of the Chamber of Builders and the regional assemblies to elect delegates to the Constituent Assembly shall be determined by order of the Minister of Regional Development and Public Works, which shall be promulgated in the State Gazette within one month of entry into force of the act.
(2) Participants in the regional assemblies to elect delegates to the Constituent Assembly of the Chamber of Builders may be all persons who undertake construction activities in the Republic of Bulgaria and who submit an application for participation in the regional assemblies within two months of entry into force of the act.
(3) Persons as defined in Para. 2 with head offices in the respective region shall submit applications to the Regional Governor accompanied by a current status certificate issued no earlier than one month prior to the application.
(4) Within two months of expiry of the deadline set in Para. 1, the Regional Governors shall organize, fix the date for and conduct the regional assemblies to elect delegates to the Constituent Assembly of the Chamber of Builders.
(5) The regional assemblies shall elect delegates to the Constituent Assembly of the Chamber of Builders at a rate of representation of one representative for every 10 applicants described under Para. 3.
(6) Within 14 days of conducting the regional assemblies to elect delegates, the Regional Governors shall send statements of results to the Minister of Regional Development and Public Works.
(7) Within one month of expiry of the deadline set out in Para. 6, the Minister of Regional Development and Public Works shall issue an order to appoint provisional commissions to prepare the draft Statutes of the Chamber of Builders and the regulations stipulated in Article 14, Para. 7 and shall fix a date to conduct the Constituent Assembly.
(8) The Order of the Minister of Regional Development and Public Works stipulated in Para. 7 shall be promulgated in the State Gazette no later than 30 days before the Constituent Assembly.
(9) The Constituent Assembly shall be chaired by a Chairperson elected by the Assembly.
(10) The Constituent Assembly shall adopt the Statutes and regulations stipulated under Para. 7 and shall elect the bodies of the Chamber of Builders under the conditions and procedures defined by law.
§ 2. (1) The builders must be entered into the Central Register of Professional Builders within one year of entry into force of the act and must have been issued with a certificate for the activities which they are entitled to carry out.
(2) After expiry of the deadline stipulated in Para. 1, buildings of category one to five and specific types of construction and assembly works may only be constructed by builders entered in the register.
(3) The requirements stipulated in paras. 1 and 2 shall not apply to builders performing construction in accordance with Article 14, Para. 2.
§ 3. The following amendments and supplements shall be made to the Spatial Development Act (promulgated in State Gazette No.1/2001; amended No.41 and 111/2001, No.43/2002; No.20, 65 and 107/2003; No.36 and 65/2004; No.28, 76, 77, 88, 94, 95, 103 and 105/2005; No.29, 30, 34, 37, 65, 76, 79 and 82/2006):
1. (Effective 3.01.2008 - SG, No. 108/2006) In Article 157, Para. 2, a second sentence shall be inserted as follows: "Opening of a building site, definition of the building frontal line and level and legalization of the order book shall be carried out after the Assigning Party has presented a contract for the construction of the project by a builder entered in the Central Register of Professional Builders, unless the project is of a category for which entry of the builder in the register is not required."
2. In Article 163a :
a) The following new paras 1, 2 and 3 shall be inserted:
"(1) The builder shall be obliged to appoint technically qualified persons under labour contracts to carry out the technical supervision of the construction works.
(2) Technically qualified persons shall be considered to be those who hold a diploma issued by an accredited higher education establishment with the qualification "construction engineer", "engineer" or "architect", as well as persons who have completed high school education with a four-year training course and professional qualifications acquired in the fields of "architecture and construction" and "engineering technology".
(3) Apart from the cases stipulated in Para. 2, technical qualifications may be recognized of a foreign person under conditions of mutuality established for each particular case when he or she holds a diploma legalized in accordance with the relevant procedures and when he or she meets the requirements set out in this act.";
b) The previous Para. 1 shall henceforward be referred to as Para. 4 and shall contain a second sentence as follows: "Other technically qualified persons under Para. 2 may perform specialized technical supervision of specific construction and assembly works in accordance with their specialization and level of education and qualifications.";
c) The previous Para. 2 shall henceforward be referred to as Para. 5.
3. Article 231 shall be amended as follows:
"Article 231. Requirements to natural and legal persons performing construction work shall be regulated by an act of law."
4. (Effective 3.01.2008 - SG, No. 108/2006) Article 237, Para. 1 shall henceforward contain the following new subparas 8, 9, 10 and 11:
"8. on a builder for carrying out construction works on projects of Category 1 without being entered in the Central Register of Professional Builders and without possessing a certificate for such buildings: from BGN 50,000 to 100,000;
9. on a builder for carrying out construction works on projects of Category 2 without being entered in the Central Register of Professional Builders and without possessing a certificate for such buildings: from BGN 30,000 to 50,000;
10. on a builder for carrying out construction works on projects of Category 3, 4 & 5 without being entered in the Central Register of Professional Builders and without possessing a certificate for such buildings: from BGN 10,000 to 30,000;
11. on a builder for carrying out construction and assembly works without being entered in the Central Register of Professional Builders and without possessing a certificate for such structures: from BGN 2,000 to 5,000;
§ 4. The provisions set out in § 3, items 1 and 4 shall enter into force one year after entry into force of the act.
This act was adopted by the 40th National Assembly on 21 December 2006 and has been stamped with the official stamp of the National Assembly.
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