Request and obtain certificate of site ownership and site map from the Földhivatal
Agency: Land Administration Földhivatal
The site map is obtained by BuildCo. The site ownership certificate can be obtained either by BuildCo or by the local construction authority. The authorities have introduced an electronic application and database and internal administrative processes have become more efficient. However, site ownership certificate and the site maps have to be obtained in a physical copy for the purposes of applying for a building permit.
Time and cost: 1 day, HUF 9,250
Obtain a geodetic survey of the site
Agency: Licensed Private Company
The geodetic survey is about measuring the site and its features on the surface with the utmost precision. The result of the survey is a digital map required for (1) the draft plan to be submitted for the urban planning approval and for (2) the final architectural plans to be submitted to the building authority for obtaining construction permit.
Time and cost: 7 days, HUF 200,000
Request and obtain urban planning approval
Agency: Municipal Planning Board
The Municipal Planning Board has to approve the basic project plan (not the detailed architectural plans) of the building. During this approval the Municipal Planning Board establishes whether the building will be far away from other neighboring buildings, how it fits into the landscape, and whether the envisioned construction project complies with the aesthetic standards of the region.
Time and cost: 30 days, no charge
Obtain a geo-technical report
Agency: Private Licensed Company
BuildCo hires an external geo-technician in order to study the land’s capacity, quality, and its groundwater properties. The hired technician visits the site and digs the land at two or three points depending on the quality of the land. The cost recorded is based on two digging points. The technician submits the soil samples to a laboratory. The lab result defines the methods by which the foundation of the warehouse is laid. This information is also necessary in order for BuildCo’s architect to draw the architectural plans. BuildCo is required to attach the geo-technician’s report as part of the technical documentation for the construction license, pursuant to Regulation No. 312/2012. (XI. 8.).
Time and cost: 14 days, HUF 100,000
Request and obtain a utility statement from Budapest Waterworks Ltd.
Agency: Budapest Waterworks Ltd.
BuildCo completes a form and submits it to Budapest Waterworks Ltd. The form has to include the property’s address, and the estimated water demand along with an attached site map. After the form is received by the utility it issues a utility statement. The statement states the water capacity: the external network water capacity for consumption and in case of fire, and at what pressure level the fire water can be provided in case of fire. The form is also submitted when applying for the water and sewage connection.
According to Regulation No. 312/2012 (XI.8.), BuildCo is no longer required to submit the utility’s official statement to the construction license application. However, according to the same regulation, BuildCo is required to state that the technical conditions of the site will able to facilitate the water connection. Therefore, a statement is requested from the utility, and attached to the construction license application. Moreover, the information provided in the statement is essential for BuildCo to draw the fire plans that are part of the construction license application.
The statement is free of charge if the diameter of the water pipe is less than 32 mm (~1.26 inches), so for BuildCo it is free.
Time and cost: 1 day, no charge
Request and obtain authorization from the water authorities
Agency: Budapest Waterworks Ltd.
BuildCo submits its application for water connection, along with the utility statement on water capacity, the average amount of water usage, a site ownership certificate, and a site map on which BuildCo identifies where the connection point on-site will be according to Regulation No. 58/2013 (II.27.). The utility reviews the application and sends out the Utility Permission document (which includes the project’s technical details and the total cost, along with two copies of the contract).
From July 1, 2017 one task in this procedure has to be carried out in the “e-közmű” online system (in English: e-utility). This is the utility coordination. Fee is to be paid to the system operator.
Time and cost: 30 days, HUF 6,500
Request and obtain fire protection authorization
Agency: Fire Protection Department
The architectural plans contain the fire protection statement, which must be approved by the Fire Department. The authorization must be obtained before the construction license is issued.
Time and cost: 30 days, HUF 3,000
Request and obtain authorization from Public Health Department
Agency: Public Health Department
The architectural plans must be approved by the Public Health Department because the warehouse will be used as a workplace. The Public Health Department examines the plans according to their special requirements. The authorization must be obtained before the construction license is issued. It is highly recommended to get this approval before submitting the request for the construction permit. The authorization is issued in 15 days if all documents are submitted properly.
Time and cost: 15 days, HUF 8,700
Request and obtain authorization from the sewage authorities
Agency: Budapest Sewage Works
BuildCo submits its application along a site ownership certificate, a site map, a site drawings, and the technical plans of the connection. The utility overviews the application and sends out the contract along with the utility permission document. The documents identify BuildCo’s responsibilities to receive a sewage connection’s approval.
The authorization is free of charge if the diameter of the sewage pipe is less than 160 mm (~6.3 inches), so for BuildCo it is free (55/H§ of modified Act CCIX. of 2011 about water utility service – effective from Sept 1, 2017)
Time and cost: 15 days, no charge
Request and obtain construction license
Agency: Mayor’s Office of the District Municipality
The investor applies for the construction license through the ETDR online system, which was introduced on October 1, 2013. The construction license will be issued in maximum 25 days if all documents are submitted properly and if the preliminary authorizations (“Fire Protection authorization” and “Authorization from Public Health Department” procedures) are obtained by BuildCo beforehand and submitted together with the rest of the documentations when this procedure starts.
Time and cost: 25 days, HUF 105,000
Receive on-site inspection from the Municipality
Agency: Mayor’s Office of the District Municipality
Once BuildCo applies for the construction license, the Building Department informs BuildCo through the “ÉTDR” online application system of the date of the on-site inspection. The Building Department will inspect whether the submitted plans comply with the site, and whether any construction has taken place. If any construction has taken place prior to the issuance of the construction license, BuildCo is required to pay a penalty fee.
Time and cost: 1 day, no charge
Set up e-construction log
Agency: Lechner Knowledge Center (Lechner Tudásközpont)
Hungary introduced an e-construction log system in 2013 which improved the efficiency of the internal administrative process. In order to open an account on this system, BuildCo must first pay the account fee to Lechner Nonprofit Ltd. which can also be done electronically. To set up the log, BuildCo must submit the project’s implementation plan, all of the work contracts and information on the workers. Moreover, BuildCo is required to update the log on a daily basis during construction with the following information:
- The type of work completed on the site
- The number of people who worked
- The updated certificates on the waste removals
The regulations regarding the implementation process, as well as the usage of the e-construction log is regulated in Regulation No. 191/2009 (IX. 15.).
Time and cost: 0.5 days, HUF 7,860
Receive unscheduled inspection from Building Control Authority
Agency: Building Control Authority
The Building Control Authority of the Municipality comes to the construction site at least once to conduct an unscheduled technical inspection.
This is stipulated in the Government Regulation 313/2012, in force since June 30, 2013.
Time and cost: 1 day, no charge
Request and obtain water connection from Budapest Waterworks Ltd
Agency: Budapest Water Works
BuildCo is responsible for setting up the water pit within one meter from the property line. The water pit is needed because the meter will be placed there by the utility. After the water pit is installed, BuildCo sends back the contract and pays the external connection fee. Then BuildCo informs Budapest Waterworks Ltd. in order to check that the installation of the water pit was properly installed. The utility then installs the pipes in order to connect the external and internal network, disinfects the pipes, ensures a pressure-, functional-, impermeability-, geodetic measure tests, and then installs the water meter.
The process of installing the connection can take place anytime prior, during or after the construction of the warehouse or the on-site pipes or even before granting BuildCo the construction license. However, it has to be completed before obtaining the occupancy permit.
According to the modified Act CCIX. of 2011 about water utility service, no utility development contribution (in Hungarian viziközmű-fejlesztési hozzájárulás) is to be paid if the diameter of the water pipe is less than 32mm (~1.26 inches). So BuildCo should not pay this cost element.
Time and cost: 10 days, HUF 400,000
Request and obtain sewerage connection
Agency: Budapest Sewage Works
The connection work is done by BuildCo’s hired technician. Until the water meter is installed by Budapest Waterworks Ltd., the sewage service cannot be used because the water meter monitors the monthly billing of the sewage usage as well.
BuildCo notifies the utility after the connection work is completed, and the utility subsequently inspects the site to verify whether the connection was done. After the connection has been successfully completed, and BuildCo has returned the signed contract, the utility will issue the occupancy permit for the sewage network.
For more complex buildings, there is generally a requirement to obtain a utility statement on capacity from the sewage authorities, but for the Doing Business case study, this requirement does not apply because the sewage main is available.
According to the modified Act CCIX. of 2011 about water utility service, no utility development contribution (in Hungarian viziközmű-fejlesztési hozzájárulás) is to be paid if the diameter of the water pipe is less than 32mm (~1.26 inches). So BuildCo should not pay this cost element.
Time and cost: 21 days, HUF 33,500
Close e-construction log
Agency: Lechner Knowledge Center (Lechner Tudásközpont)
BuildCo closes the e-construction log once all of the work is completed on-site and must upload the following documents:
- Daily, detailed updates on the type of work completed on the site;
- Certificates on the waste removals;
- Operational and maintenance instructions to the warehouse;
- Warranty documents;
- Report indicating that the site manager has handed the site over to BuildCo, which proves that the construction has been completed on the site.
The closure of the log serves as BuildCo’s notification to the Building and Heritage Protection Unit and to the Building Department of the completion of the construction.
Time and cost: 0.5 days, no charge
Submit the new geodetic map to the land Registry
Agency: Land Registry
BuildCo must obtain a new geodetic map drawn by a hired surveyor any time after the construction is completed on-site. The hired surveyor submits the map to the Land Registry. According to the 2004. CXL. Law, the Land Registry reviews and authorizes the new geodetic map (the map includes the newly built warehouse) from a cartographic point of view. After the Land Registry approves the new geodetic map, the hired surveyor submits it to the “OÉNY” National Building Register online platform before or at the same time requesting the occupancy permit. This is an open source database, where anyone can obtain information on any property.
During the authorization process of the occupancy permit, the Building Department also reviews the new geodetic map to verify whether it complies with construction license regulations.
Time and cost: 10 days, HUF 120,000
Receive on-site inspection to check on the quality of water
Agency: National Public Health and Medical Officer Service (ANTSZ)
A representative from the National Public Health and Medical Officer Service (ANTSZ) comes to inspect the quality of water. The representative takes a sample of the water and sends it to the lab for testing. The approval is issued within 10 days.
Obtaining approval on the cleanliness of water is one of the conditions that the Public Health Unit set before its approval for construction license. These condition must be completed prior to applying for the occupancy permit of the building since the Public Health Unit requires this document in order to approve the occupancy permit. It has to be done before the occupancy permit, and after the water and sewage network were installed.
Time and cost: 10 days, HUF 29,000
Receive final inspection from the Fire Protection Department
Agency: Fire Protection Department
BuildCo must request the occupancy permit through the “ÉTDR” online platform system attesting that they complied with the standards concerning each of the specialized authorities. The Fire Protection Unit mandates that the fire alarm occupancy permit be issued before the construction occupancy permit can be requested.
A specialist from the Fire Protection Unit visits the site and inspects whether the fire taps and the fire water system of the building comply with regulations. Once the on-site inspection is done, the Fire Protection Unit issues a declaration that the building has been completed in compliance with the technical plans.
Time and cost: 1 day, no charge
Receive final inspection from the Public Health Department
Agency: Public Health Department
A specialist from the Public Health Unit visits the site and inspects whether the conditions for worker safety and private locations (i.e., locker rooms, restrooms, smoking zones, etc.) comply with the health regulations.
Time and cost: 1 day, no charge
Receive final inspection from the Building Department
Agency: Municipality
There is an option for all of the authorities to visit the site together on the same day; however in practice the authorities inspect the building separately. The Building Department conducts its final inspection of the warehouse and its surroundings to ensure they comply with the technical and architectural plans and with the relevant laws and regulations.
Time and cost: 1 day, no charge
Obtain occupancy permit and register the building with the Land Registry
Agency: Municipality
After receiving the final inspection, BuildCo applies for the occupancy permit through the ETDR online system, which was introduced on October 1, 2013.
Once the occupancy permit is granted, the Building Department notifies the Land Registry directly in order for the Land Registry to update the site ownership certificate and the site map. The Land Registry will note the function of the newly built warehouse on the site ownership certificate, as well as the shape and the function of the new warehouse on the site map. After it is completed, the warehouse can be sold.
BuildCo does not have to apply for the registration of the building. BuildCo just has to submit the new geodetic map prior to requesting the occupancy permit application/or the same time. After it is granted the Building Department notifies the Land Registry, so the process is automatic. Howerver, BuildCo only has to pay the processing fee of HUF 6,600 as it is noted at “Register the building with the Land Registry Office”.
Time and cost: 51 days, HUF 120,300
