PSC Cyprus: Execution of Building and Civil Engineering Projects by Legal Persons
In order to undertake and execute Building and Civil Engineering projects in the Republic of Cyprus, the company needs to register at the Contractor's Register and obtain an annual licence by the Council for the Registration and Control of Building and Civil Engineering Contractors.
In the case of partnerships, contracts for the execution of a building or civil engineering project must be concluded in the name of at least one member of this partnership who is a registered contractor and holder of an annual licence for the class and category of the project which is to be undertaken. The partnership does not need to obtain any additional licence other than the individual licence of one or more members of the partnership (see Building and Civil Engineering Contractors Practice).
The term "contractor" refers to an individual, or body corporate, which by profession undertakes to execute or executes a building or civil engineering project (including the commissioning of labour only) against a specified sum or percentage remuneration or against any other lawful consideration except for a salary or for his own exploit or for any other use or purpose.
Specifically, the "civil engineering project" refers to the erection or construction, or extension, or alteration, or repair of any work, which technically belongs to the field of civil engineering and which is not a building project, and includes roadworks, the construction of bridges, tunnels, dams, drains, harbour works, airports, sewers, drainage, water and irrigation works, beach protection works, quarrying and mining works but does not include fencing and retaining wall constructions of a height not exceeding 150 cm, the digging out of ditches of up to 80 cm in depth and the laying out of pipes of less than 10 cm in diameter unless the Council deems that it is a civil engineering project of a specific class on account of the project's nature and special features.
Whereas, the "building project" refers to:
- the construction, reconstruction, erection, re-erection and restoration of a building;
- any building work, which constitutes, or includes, the construction, erection, addition, alteration, arrangement, repair, improvement or demolition of a building or part thereof or any work of extension, repair or alteration to the load-bearing structure or which affects the load-bearing structure of a building, or any other building work which affects the public's safety;
- the wall cladding, the floorings, the construction of formwork, the roofing of a building including the foundation work, all building-related earthworks, the construction of retaining walls, fencing and all attachments or ancillary constructions of a building;
- every preliminary or preparatory work including building or construction work for electrical, plumbing installations, air conditioning, ventilation, water supply, sewage or other complementary work of a building and the term "building works" shall be construed respectively.
Notably, the projects are classified into five classes according to their type and area or their total value in the case of building projects or civil engineering projects respectively (see Classification of works by category, class and type provided in related documents).
The Registration and Control of Building and Civil Engineering Contractors Law grants powers to the Council for the Registration and Control of Building and Civil Engineering Contractors for the issuance of a licence to building and civil engineering contractors to both natural and legal persons.
Any legal person may be registered at the Contractors' Register as contractor for building or civil engineering projects of a specific category and class provided that the company:
- is lawfully constituted and incorporated in the Republic of Cyprus or other EU member state;
- has, pursuant to its memorandum or articles of association, the authority and the capacity to carry on the contractor business;
- employs at least one technical director on a full-time and continuous basis who directs and supervises the building or civil engineering projects undertaken who:
- is physically and mentally capable to undertake managerial responsibilities and has integrity;
- is a registered contractor for building or civil engineering works of the category and class for which the company applies for (see Building and Civil Engineering Contractors Practice in related links);
- is vested with duties and responsibilities under the employment contract which safeguard the proper management and supervision of the entire construction of building or civil engineering projects, as the case may be, undertaken and executed by the company;
- meets all other necessary requirements for the issue of an annual licence of corresponding class to individuals (see Building and Civil Engineering Contractors Practice in related links).
Initially the application for registration of the technical director needs to be submitted and the Certificate of Registration and the annual licence to be obtained (see Building and Civil Engineering Contractors Practice in related links).
Thereon, the application for the registration of companies to the Contractor’s Register can be submitted either through the PSC Cyprus or by contacting directly the competent authority:
Council for the Registration and Control of Building and Civil Engineering Contractors
9, Androkleous street
2nd floor, Office 204, 1060 Nicosia
P.O.Box 20595, 1660 Nicosia
Tel. : +357 22206306/313
Fax : +357 22206370
The application should be accompanied by the following documents (translated in Greek language):
- copy of Memorandum & Articles of Association;
- copy of Certificate of Incorporation;
- copy of Certificate of Shareholders;
- copy of Certificate of Directors and Secretary;
- copy of Certificate of Registered Office Address;
- copy of Employment contract with the appointed Technical Director;
- copy of Evidence of Social Security that the person appointed as technical director is employed by the company;
- copy of Certificate of Registration to Contractors’ Register of the EU member state incorporated (in case of EU member state incorporated companies);
- copy of Contractor’s Contracts undertaken (in case of EU member state incorporated companies).
The technical director is required to present himself in person and sign before the Council a written statement, on the form prescribed by the Council, that he accepts his appointment as technical director of the company and undertakes all the relevant duties and responsibilities.
The applicant is informed regarding the authorisation decision within three months from the date that the application form and supporting documents were duly submitted. Upon approval, the applicant needs to pay to the Council for the Registration and Control of Building and Civil Engineering Contractors the following:
- registration fee of €200,00 applicable for all classes;
- licence fee of €490,00 for A´Class, €330,00 for B´Class, €245,00 for C´Class, €165,00 for D´Class, or €80,00 for E´Class.
Notably, the Company’s licence for building or civil engineering projects relates up to the class which corresponds to the technical manager’s experience or to the maximum experience of any of its technical directors in case of more than one technical director.
The Certificate of Registration issued is valid infinitely and does not need to be renewed; whereas, the licence for building or civil engineering works in respect of the five classes is valid until the 31st of December of the year for which it has been issued.
The licences can be renewed under the same terms and conditions within ttwo months prior to the commencement of the year to which it refers; the renewal fee is €490,00 for A´Class, €330,00 for B´Class, €245,00 for C´Class, €165,00 for D´Class, or €80,00 for E´Class.
Notably, registered contractors who hold an annual licence for first or second class building/ civil engineering works may submit the application for special licence under article 33 and pay the fee of € 165.00 in order to obtain a special licence to execute a fourth or fifth class civil engineering/building project, provided that the project is comprised in a building/civil engineering project whose supervision has been undertaken by this contractor.
Similarly, registered contractors, who hold an annual licence for third class building/civil engineering works, may submit the application for special licence under and pay the fee of €80,00 in order to obtain a special licence to execute a fifth class civil engineering/building project, provided that the project is comprised in a building/ civil engineering project whose execution has been undertaken by this contractor.
Obligations and Supervision
Registered Contractors are obliged to comply with the provisions of the Registration and Control of Building and Civil Engineering Contractors (Contractor's Duties and Obligations and Disciplinary Procedure) Regulations of 2002, as periodically amended, and specifically, among others, to:
- exhibit a decent conduct, behave in manner consistent with the profession, defend the honour and dignity of the profession and their behaviour must always be governed by integrity and honesty and not make any false or misleading representations or advertisement referring to their experience, or their class, or in general to their profession;
- keep a name-board posted on every building erected which shall state the contractor’s name, registration number, the logo of the Council for the Registration and Control of Building and Civil Engineering Contractors, the class of experience and the class of the annual licence in force;
- immediately inform the Council for the Registration and Control of Building and Civil Engineering Contractors of any resignations or new engagements of technical staff or technical directors of companies employed on a permanent basis and during all working hours of the building sites;
- faithfully and diligently fulfill the obligations they have towards their clients and not do any acts or actions or make any default, which tend or are designed to evade the responsibility they have towards their client;
- make every possible effort so that a spirit of politeness, collegiality, courtesy and mutual respect prevails among them and to abstain from any incongruous, or harmful comment directed against any of their colleagues;
- always show proper respect towards their clients and to behave with decency towards their colleagues.
Licensed companies are obliged to:
- maintain at least one technical director who has been appointed and approved by the Council for the Registration and Control of Building and Civil Engineering Contractors; the technical director shall be deemed to have executed all the building, or civil engineering projects, which have been executed by, or for the company, for the entire duration, in which his name stands registered in the Contractors Register as technical director;
- ensure that every project undertaken is managed and supervised by at least one, or more technical directors for the category and class of the constructed project.
In the case of a partnership, the contract for the execution of a building or civil engineering project, which is undertaken by a member of the partnership on behalf of the partnership who is a registered contractor and holder of an annual licence for the class and category of the project which is to be undertaken, must be confirmed by the registered contractor with a written note made on the contract that the said contract has been concluded for his or their account as well as with the addition of the following words, accordingly, after his name: “trading with other as” or “trading with others as", followed by the name, or the trade name, of the partnership as well as by a reference that the contract is entered into for the account of such partnership.
The Council for the Registration and Control of Building and Civil Engineering Contractors has the duty to exercise disciplinary control on the registered contractors and impose disciplinary penalties, such as the deletion of a registered contractor from the register or cancel, the suspension of certificates or licences issued, the downgrading of a contractor to a lower class etc.
Federation of Associations of Building Contractors Cyprus
3A Androcleous str., 1060, Nicosia
Tel.: +357 22753606
Fax: +357 22751664
Email : email@example.com
Pancyprian Association of Land Development and Contractors Businesses
P.O. Box 21657, 1511 Nicosia
Tel.: + 35722665102
Fax : +357 22669459
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Ministry of Energy, Commerce and Industry, Point of Single Contact