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Government Decree Passed to Ease Construction Works During the Emergency

Government Decree Passed to Ease Construction Works During the Emergency

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On 10 March 2021, a new Government decree was passed aiming to ease construction work processes by not requiring certain safety measures. The decree is not to be applied for high value (above HUF 700 million) projects, public procurements and defensive or security procurements.

According to the decree, in any other works not falling in the above categories, based on the decision of the project owner, the pre-COVID regulations (especially the rules of the Construction Act, the Act on Fire Protection and the Disaster Management Act) can be applicable for any structure affected by the stricter regulations related to the pandemic. The more lenient (pre-COVID) rules will also apply for administrative proceedings initiated after 10 March 2021, and proceedings in progress on that day.

It is worth to mention that similarly to administrative processes, construction works started before 10 March 2021 can also use the lenient regulations after 10 March 2021. The decree expires on 23 May 2021.

Even though the option of using the provisions of the building, disaster and fire protection legislation that came into force before 4 November 2020 is only available for two and a half months, it is a welcome initiative that can potentially help smaller sized construction works involving the small and medium-sized enterprises that were hit the hardest by the pandemic.

By Eszter Kamocsay-Berta, Managing partner, KCG Partners Law Firm

Hungary Knowledge Partner

Nagy és Trócsányi was founded in 1991, turned into limited professional partnership (in Hungarian: ügyvédi iroda) in 1992, with the aim of offering sophisticated legal services. The firm continues to seek excellence in a comprehensive and modern practice, which spans international commercial and business law. 

The firm’s lawyers provide clients with advice and representation in an active, thoughtful and ethical manner, with a real understanding of clients‘ business needs and the markets in which they operate.

The firm is one of the largest home-grown independent law firms in Hungary. Currently Nagy és Trócsányi has 26 lawyers out of which there are 8 active partners. All partners are equity partners.

Nagy és Trócsányi is a legal entity and registered with the Budapest Bar Association. All lawyers of the Budapest office are either members of, or registered as clerks with, the Budapest Bar Association. Several of the firm’s lawyers are admitted attorneys or registered as legal consultants in New York.

The firm advises a broad range of clients, including numerous multinational corporations. 

Our activity focuses on the following practice areas: M&A, company law, litigation and dispute resolution, real estate law, banking and finance, project financing, insolvency and restructuring, venture capital investment, taxation, competition, utilities, energy, media and telecommunication.

Nagy és Trócsányi is the exclusive member firm in Hungary for Lex Mundi – the world’s leading network of independent law firms with in-depth experience in 100+countries worldwide.

The firm advises a broad range of clients, including numerous multinational corporations. Among our key clients are: OTP Bank, Sberbank, Erste Bank, Scania, KS ORKA, Mannvit, DAF Trucks, Booking.com, Museum of Fine Arts of Budapest, Hungarian Post Pte Ltd, Hiventures, Strabag, CPI Hungary, Givaudan, Marks & Spencer, CBA.

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