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A new law regulating the entire life cycle of public construction projects will enter into force on August 1, and will apply to all projects financed by at least 50 percent from the Hungarian budget or EU funds, Minister of Construction and Transport, János Lázár, announced at a press conference in Budapest on Tuesday.
He pointed out that 5,500 billion forints (EUR 14.5 B) worth of public investment had to be suspended last year, after 28,000 billion forints (EUR 74 B) worth of investment was completed in the country between 2010 and 2022. He also said that 3,300 billion (EUR 8.7 B) worth of ongoing investments under the supervision of the ministry, had to be completed, while 200 investments worth 1,300 billion forints (EUR 3.44 B) were being planned.
János Lázár stressed that the new law redefines the framework and conditions for spending public money after 32 years. The public debate on the new law had received around a thousand proposals from 40 professional organizations, he said.
The minister underlined that
the new law guarantees predictability for those involved in construction, while also aiming at sustainability, low environmental impact, and cost-effectiveness.
The politician described the legislation as patriotic and aimed at involving domestic SMEs in public investment.
The principles include that public investment should be carried out under the public works investment framework program. The latter will list all projects to be implemented by 2035 by the Ministry. Each ministry will have to submit a list of its development proposals for the next ten years. He explained that
the aim is to create opportunities for Hungarian entrepreneurs, and primarily use Hungarian raw materials.
Among the changes, Lázár emphasized that there will be more competition in public procurement than before. Public procurement will only be valid if at least two valid bids are received, and the winning one will be open to the public, he said. In the future, investments can only be launched with a design plan, after a permit procedure, and maintenance costs must already be included in the plans. Another important change is that public procurement procedures will be negotiated, not only on the basis of price, but also on the basis of a social criteria system, including environmental considerations.
A State Investment Stakeholder Reconciliation Council will be set up. The council will be responsible for drawing up detailed rules for each project, he said. A building information model (BIM) system will also be introduced, in which everything will be planned and the implementation will be recorded. There will also be a cost information system, which will improve the monitoring of costs.
The European Commission has been consulted on the new law, and the Commission found that to be appropriate,
pointed out Lázár. The ministry will be a consortium partner in the implementation of municipal investments, he added.
The drafting of a construction law combining other heritage protection and construction industry legislation affecting private individuals and businesses has begun, with another round of public consultation expected.
Lázár mentioned that the preparation of the revision of The Highway Code has begun, as it does not provide an adequate response to today’s changed traffic conditions.
László Koji, president of the National Federation of Hungarian Building Contractors (ÉVOSZ), said that there was now a new kind of cooperation between the ministry and the association. The association is acting in the interests of the entire construction value chain with proposals for solutions, while the ministry is open to all questions, and consultation is ongoing, he concluded.
Via MTI; Featured image: Facebook/Lázár János
