The deadline for the digitalization of building permits in the Czech Republic faces uncertainty, prompting the Ministry for Local Development, led by Ivan Bartoš of the Pirate Party, to explore an emergency solution. Initially set for implementation in July of the next year, plans to enable citizens to handle building permits digitally are now in jeopardy as the Office for the Protection of Economic Competition cancels the selection procedure for the solution provider.

In an effort to salvage the timeline, the Ministry is seeking to award a contract worth 37 million crowns without competition. However, this move is currently under investigation by the Anti-Monopoly Office. Despite the controversy, the Ministry remains steadfast in its commitment to launching the promised Builder’s Portal on time. Nevertheless, skepticism lingers among developers and the political opposition.

The previous government had initiated a tender seeking a contractor for the digitalization project with an estimated cost of 1.9 billion crowns. Bartoš canceled this tender, announcing a new one this year. In June, the Ministry selected a contractor for the project at a cost of 325 million crowns, excluding VAT. This tender has now been canceled, leading to the emergency measure of awarding the contract without competition to InQool from Komárov near Brno. This contract is valued at only a tenth of the previous estimate, amounting to 37 million crowns.

Petr Waleczko, a spokesman for the Ministry, emphasized the importance of the awarded contract, stating, “It’s a key part that the state cannot deliver itself.” The first delivery of the primary system is planned for the beginning of 2024, with the expectation that the system will be available to building authorities and the public no later than June.

The crisis has drawn criticism from Tomáš Kadeřábek, director of the Association of Developers, who expressed concerns about the impact on the construction sector already grappling with a crisis. Developers are calling for a postponement of the amendment’s effect, highlighting the potential problems if the digitalization is not effectively managed by the stipulated deadline of July 1, 2024.

Article by Prague Forum