Tuesday, 17 March 2026
The Czech government has approved a reform plan to introduce a centralised state construction administration, with full implementation expected in 2028.
Under the proposal, the current system of 626 local building authorities will be replaced by a new Office of Territory Development, supported by 14 regional directorates and additional local branches. The Ministry for Regional Development is expected to prepare the necessary legislative amendments to the Building Act during 2026. The amendment has already passed its first reading in the Chamber of Deputies.
According to Regional Development Minister Zuzana Mrázová, the reform will be implemented in four phases. The first phase focuses on preparing and approving legislative changes, alongside introducing initial operational adjustments. In the following year, a new institutional structure, including the Office of Territory Development, is expected to be established. Responsibilities from central government bodies will then be transferred to the new authority, with full operational launch planned for 2028. Further digitalisation of processes is expected after 2030.
The reform will be supported by an interdepartmental project titled “Implementation of a new model of state construction administration,” with both strategic and operational management levels.
The government argues that centralisation is intended to simplify procedures, improve coordination and reduce permitting timelines, which have been widely cited as a constraint on development activity.
“The reform of the construction administration in the Czech Republic is absolutely necessary. Due to bureaucracy, projects have been preparing for ten or more years, and this hinders the construction of apartments, infrastructure and the development of the entire economy. Therefore, we need to fundamentally change the system and speed up construction management. We want to start the construction of infrastructure, apartments for people and investment of companies. Faster construction will bring faster GDP growth and, of course, other revenues of the state budget,” said Prime Minister Andrej Babiš.
Mrázová previously indicated that the reform is not expected to lead to a reduction in staffing levels at existing building authorities. Instead, additional personnel may be required as responsibilities are consolidated within the new structure. While the upfront costs of implementation have not been disclosed, the ministry expects that improved efficiency will offset these expenditures over time.
The reform builds on the Building Act adopted in 2021, which came into effect in July 2024. The current amendment, originally prepared by the ANO movement, extends that framework by introducing a centralised administrative model.
The proposed changes have received mixed responses from industry stakeholders. Support has come from organisations such as the Association of Building Entrepreneurs and the Association of Developers, while some professional bodies, including chambers of engineers and architects, as well as representatives of municipalities, have raised concerns about aspects of the reform.
Source: CTK
