After 3 months since the publication of Decree-Law 10/2024, of January 8th, commonly called “Urbanistic Simplex”, we are now beginning to see with greater clarity the impacts that the long-awaited decree will bring to the construction sector and real estate in Portugal.
The “Urbanistic Simplex” is an administrative simplification diploma from the RJUE (Legal Regime for Urbanization and Building), that is, its main focus is on homogenizing municipal procedures throughout the national territory, something that did not happen.
Some procedures have been eliminated, others have been simplified, and greater responsibility has been given to the main agents in the real estate market: Promoters, Technicians, Builders and Municipalities.
Much has already been said about administrative simplification, and several entities have already publicly given their opinion on the diploma. But what exactly are we talking about when we talk about “administrative simplification”?
The changes introduced to the RJUE (Legal Regime for Urbanization and Building) by SIMPLEX
We have already seen what URBANISTIC SIMPLEX is focused on. Throughout this article we will list some of the main innovations and how long we should count for each phase of the process in accordance with DL 10/2024, of January 8th.
We will, however, make the necessary reservation that the “new” legislation is very recent, and that municipalities are still in the process of adapting their municipal regulations to the new standards, so it is expected that it will be common to find, in the near future, some challenges to the market, as a result of adapting to the new legal and procedural panorama, particularly from the agents we mentioned above.
You can read this article in its entirety, or consult the topics that you consider most relevant to you, according to the index below:
The various phases of SIMPLEX implementation
Prior Control (to be developed in part II of this article)
Construction License and Start of Work
Use License and Housing Technical Data Sheet
Deadlines
Oversight
General and specific documentation
PEPU and electronic Work Book
Redefining the role of the City Council and project technicians
Changes in construction
Resources (to be developed at the end of the article)
1. The various phases of SIMPLEX implementation
Despite being published at the beginning of this year, the Decree-Law will be implemented in several phases. Below are the various SIMPLEX execution steps:
08.01.2024:
Publication of DL 10/2024, of January 8th
04.03.2024:
Entry into force of most of the changes provided for in the DL
27.02.2024:
Publication of ordinances 71-A, 71-B and 71-C/2024, which establish the instructional elements, response models and opinions and workbook models, respectively, and regularize the documentation to be delivered at national level
04.08.2024:
Publication in the Official Gazette of the update of all Municipal Regulations in accordance with the changes introduced by SIMPLEX
06.01.2025:
General and mandatory use of the IT System for Issuing Opinions
05.01.2026:
General and mandatory use of PEPU (Electronic Platform for Urban Procedures)
01.06.2026:
Revocation of the RGEU and entry into force of the Construction Code
01.01.2027:
Start of the pilot project to use BIM methodology in project assessment
01.01.2030:
Mandatory presentation of architectural projects using BIM methodology, at national level
2. Prior Control (to be developed in part II of this article)
One of the most frequently asked questions by those starting out in real estate investment and development is: if, and when, does a project have to “go to the City Council”? The answer to this question lies in the definition of the concept of Prior Control.
In short, there is Prior Control whenever we talk about a completely new construction project, when we expand existing buildings or when we change elements of a building's exterior envelope (when we change facades, open new openings, change exterior cladding materials and change shapes and materials of roofs or coverings).
Whenever a property falls within one of these categories, there must be Prior Control by the City Council and other competent entities.
The number of entities that will comment on the project will depend on the classification of the land in the Ordering Plan (contained in the PDM - Municipality Urbanistic Guidance Plan) and/or the function for which the property is intended. We are talking about entities such as DRC (Patrimony), Turismo de Portugal, ICNF, APA (if the land is in a water area), Infrastructures of Portugal, among others.
When the work to be carried out requires Prior Control, architectural projects and specialties drawn up by technicians qualified for the purpose (architects, engineers, thermal and acoustic experts, mechanical and electrical engineers, etc.) will have to be presented, and it will be on these that the City Councils and other entities must comment.
A work is exempt from Prior Control when it does not fall into any of the previously mentioned categories.
When a project is exempt from Prior Control, it does not mean that projects do not have to be presented to the City Councils, but rather that the administrative procedure has been greatly simplified with SIMPLEX.
These situations may raise some doubts, so it is recommended that you consult an architect, or the competent City Council, to help clarify the steps to take in these cases.
A work is no longer subject to “going to the City Council” when we are talking about cases of small interior changes, repairs and maintenance of properties, cleaning of facades and roofs, conservation works, exchange of facade materials or frames for others that are more energy efficient, but maintain the original appearance.
Constructions of pergolas or outbuildings smaller than 10 m2 are also exempt from presenting projects to the City Councils.
The issue of Prior Control, and associated administrative procedures, is quite extensive and complex, and will therefore be addressed and developed again, soon, in part II of this article.
3. Construction License and Start of Work
The Construction License (aka “Construction Permit”) was the procedure that completely disappeared. Until now, after the approval of architectural and specialty projects, it was still necessary to submit a series of documentation, and wait for the approval and issuance of a license to begin work. This procedure is now replaced by the receipt for payment of municipal taxes, which must be accompanied by the contractor's license and other specific documentation (which appears in 21, of Annex I of Ordinance 71-A/2024).
After payment, and up to 5 days before the start of the work, the promoter (or the contractor on his behalf) must notify the beginning of the work, with the delivery of the required documentation, contained in number 30 of the same Ordinance. After this communication, works can begin.
This procedure automatically includes the occupation of public space with waste containers (RCD) or scaffolding, making these procedures unnecessary. It is also clarified that the request for the presence of security forces and services at works is optional and cannot be required of the promoter by public entities.
4. Use License and FTH (Housing Technical Sheet)
This was also a procedure that was greatly simplified. Similar to the Construction License, after completing the work, it was necessary to submit a series of documents (such as certificates, final screens, terms of responsibility...), and wait for the Use License to be issued, which it could take months.
Now, after the work is completed, the required documents must be submitted. The delivery of the final screens is intended to publicize the completion of the work, in whole or in part, and the archive at the city council. The building or its autonomous units can be used for the intended purpose immediately after submitting the expected documentation, no longer needing to wait for the Use License to be issued.
As for the Housing Technical Data Sheet (FTH), a lot has been said about the topic. What the new law says is that, at the time of signing the property purchase and sale contract, the display or proof of the existence of the housing technical file and authorization for use or demonstration of its non-enforceability, is no longer necessary.
This does not mean that it ceases to exist, it is just that it is no longer mandatory to present it when transferring assets. It is always recommended that, when negotiating the purchase/sale of the property, you ask for a copy of this form, as security for those who are going to purchase the property.
5. Deadlines
The issue of deadlines was also clarified. In the previous version of the RJUE, a very short deadline was set for City Councils and other Public Entities to be able to carry out a reliable analysis of projects, and prepare technical opinions within their competence. This resulted in each City Council ending up responding within the time frame possible, generating many disparities when comparing the response times of the various municipalities.
Therefore, after submitting the architectural projects, it is established, for the preparation of technical analyzes of the chambers and preparation of opinions from the various entities involved:
Up to 120 (business) days for works whose construction area does not exceed 300 m2
Up to 150 (working) days for works whose construction area is between 300 m2 and 2,200 m2
Up to 200 (business) days for works with a construction area exceeding 2,200m2
The preliminary resolution must be carried out once, up to 15 days after submission, and the applicant may only be asked to perfect the request, if necessary, during this period, after which it is considered that the process has been correctly completed, not may be rejected based on incomplete instruction.
After approval of the architectural projects, the applicant has up to 6 months to present the specialty projects. Since the City Councils only check whether the appropriate terms of responsibility and required projects are delivered for these projects, we expect the approval of specialties to be much faster, as it was before SIMPLEX came into force.
Failure to present specialty projects and other studies within the established deadline (or that resulting from an extension of the deadline) implies the suspension of the licensing process for a maximum period of six months, after which the process is declared to have expired. This means that failure to meet the stipulated deadline means that all projects must be re-submitted – and re-examined – including the architectural one.
Deadlines are counted from the day applications are submitted. If it turns out that the requests need to be improved, the deadlines will only be suspended if the applicant takes more than 10 days to respond to them. That is, the applicant does not see the deadline suspended, and the way in which it is counted is clarified.
At the same time, the Public Administration (City Councils and other Public Entities) can only request perfection of the request once.
6. Inspection
All works will be subject to inspection by the Public Administration, regardless of whether they are operations with Prior Control, or Exempt from Prior Control.
Administrative supervision aims to ensure that works comply with applicable legal and regulatory provisions. These inspections are carried out by municipal employees, or by employees of private companies subcontracted by the municipality.
This implies that all types of works are monitored by design technicians qualified for the type of operation to be carried out, making promoters, technicians and municipalities co-responsible for technical non-conformities that may be found during inspection of the work.
The principle followed was to speed up the process of technical evaluation of procedures, placing responsibility on technicians and promoters, assessing compliance with regulatory standards during the work.
7. General and Specific Documentation
The Ordinances that list the instructional elements to be presented when submitting urban planning procedures were already published on February 27th.
The publication of these elements is a fundamental step towards standardizing Licensing and Prior Communication processes at national level, and has been long awaited by professionals in the sector. They contain "check lists" that promoters, designers and contractors must follow when presenting projects, terms of responsibility, issuing licenses and presenting permits, among others, and which now follow the same model at national level. The models that the City Councils must follow in responding to the procedures, public notices to be posted on site and the digitization of the Work Book are also published.
Links to the ordinances can be found in the final section of this article, in the “Resources” section.
8. PEPU and electronic Work Book
The Electronic Platform for Urban Procedures (PEPU), along with the Construction Code, are perhaps the most awaited changes in the “reform” of administrative procedures in matters of urban planning.
PEPU is being developed with the objectives listed below:
submit online requests throughout the national territory;
consult the status of processes and measure deadlines;
receive electronic notifications;
obtain certificates of exemption from urban planning procedures;
standardize procedures and documents required by municipalities, avoiding the multiplication of different practices and procedures;
future submission of requests in Building Information Modeling (BIM) format, with automation of verification of compliance with applicable plans.
Regarding the Work Book, it continues to be mandatory, however, it is no longer necessary to present the Opening Term and the Completion Term for the Work, as instructional elements.
In addition to the respective start and completion dates, all facts that lead to its stop or suspension, as well as all changes made to the licensed or communicated project, must be recorded in the Work Book.
The model and other records to be entered in the Work Book are already defined by ordinance, which also establishes the characteristics of the electronic Work Book.
The Work Book therefore ceases to be an instructional element of the request or communication, as it will now be consulted and completed electronically, and must not be sent to the City Council at the end of the work, nor be subject to any prior analysis , registration, validation or opening or closing terms by public entities.
9. Redefining the role of the City Council and Project Technicians
With SIMPLEX, there is a redefinition of the scope of municipal councils' assessment of projects – resulting in greater accountability for technicians, promoters and construction managers.
It is up to the municipality to “only” check the urban framework and integration of the projects. This includes the insertion of the building in the territory (control of compliance with plans, preventive measures, area of priority urban development and priority construction, administrative easements, public utility restrictions and proposed use, etc...) and its suitability to the construction strategy. territorial development established in PDM and other territorial management instruments; the exterior aesthetics and the project’s insertion into the urban and/or natural landscape; and the sufficiency of infrastructure.
That is, it is no longer the responsibility of the municipality to assess issues relating to the interior of buildings or matters relating to specialties (water, electricity, gas, etc.), since projects are drawn up based on declarations of compliance with the legal standards applicable by the competent technicians, upon presentation of a Term of Responsibility.
In turn, the City Councils will have more oversight responsibility. It is clarified that such powers must be exercised within the framework of legality and that they are intended to verify compliance with the law, and not to adopt urban protection measures based on judgments of opportunity, convenience or opinions of a technical nature.
The declarations of responsibility of the authors of architectural projects, with regard to the interior aspects of buildings, as well as the authors of specialty projects and other studies, constitute a sufficient guarantee of compliance with applicable legal standards, except when the declarations refer to requests for exemptions from compliance with regulations, to be indicated in the Author and Coordinator and project liability terms.
In other words, the City Council will not evaluate the projects in their nature and technical order, in relation to the interior of the buildings, during licensing, but will verify the existence of conformities or non-conformities during the work. The aim is to speed up the analysis process, but maintain rigor and technical requirements in the execution of urban operations.
Therefore, it is essential that the promoter is accompanied and advised by qualified professionals, as the City Councils are being called upon to supervise all works carried out in the municipality. It is important that the project promoter is safeguarded as the responsibility for any non-conformity found in the work may fall on him.
10. Changes in works
It is natural that changes may arise during construction work, for reasons of a technical nature, or for situations that may be difficult to detect during the design phase (such as when we carry out rehabilitation of buildings with very precarious structures, which make access to some of the areas difficult. of the building). It is possible to make any necessary changes during the course of the work.
As has happened up until now, changes made to works exempt from Prior Control may be made, presenting final screens in the Use License.
When these changes correspond to expansion, changes in layout, facades, or others that involve works with prior control, they must be submitted for analysis by the municipality. In this case, only the elements that have undergone changes are displayed.
In summary
So far we have seen the main changes introduced to the RJUE, in a process that became known as the URBANÍSTICAL SIMPLEX.
We noticed that the administrative procedures were maintained, but that they were simplified or changed, with a view to eliminating superfluous, redundant procedures, or that resulted in excessive bureaucracy, causing a lot of entropy to the Licensing process. This “achievement” came at the cost of greater accountability not only for project technicians, but also for municipalities, which saw their role as supervisory entity greatly reinforced.
We are still at an early stage of assessing the true impact of accelerating and simplifying procedures, and the suspension of the mandatory presentation of certain elements – such as the FTH or the Work Book – makes some technicians more fearful.
It is also important to emphasize that the works will not go uncontrolled, and that no one should fall into the mistake that all works, as long as there is no intervention on the outside of the building – can be carried out without a license. The promoter must be aware that all legal and regulatory standards will have to be complied with, which must be certified by a qualified technician, under penalty of violating the law. You must be alert that you will be monitored with a regularity that has been unprecedented until now.
The promoter must demand from all parties – from the architect and engineer, to the contractor and seller/real estate agent – all the information and documentation that allows him to attest to the conformity of the projects and works, so that the burden of any non-conformity of the property.
It is expected that there will be faster analyzes by the City Councils, and a “debureaucratization” of procedures, allowing real estate products to be placed on the market more quickly.
The biggest victories are precisely the development and creation of the PEPU and the Construction Code, which are expected to bring more transparency, rigor and homogenization to the licensing and construction processes, leveling the entire national territory, and focusing, on a single platform, the verification of requirements to start a project in Portugal.
The next step
In part II of this article we will address the topic of Prior Control in more depth. What are the Licensing procedures for a work, what the promoter will need, what steps to take, and what type of investment to expect.
This data will help you define an investment and marketing strategy for a property, land or fraction, weigh the pros and cons of each option, and how to add value to your real estate products.
If you are thinking about starting the process of building your own home, you will also understand which steps to follow, and what to expect in each of them.
The construction sector is one of the most regulated in Portugal. Although it is a complex process, this does not have to be a demoralizing factor. It is important that the promoter is informed and knows what to expect, in order to make an informed decision and establish the direction of his business. To do this, you must meet with the appropriate professionals, who provide you with confidence and trustworthy, relevant and pertinent information.
11. Resources
You can consult in detail the information that supported the preparation of this article at the links provided below.
Decree-Law No. 10/2024, of January 8th – Legal Regime for Urbanization and Building: Reforms and simplifies licensing within the scope of urban planning, spatial planning and industry.
Working document with chronology, assessments and commented description of the changes introduced to existing legislation (RJUE, RGEU, RJIGT, etc.) by Decree-Law 10/2024, of January 8, prepared by the Order of Architects:
The Ordinances can be consulted at the links below:
Ordinance No. 71-A/2024, of February 27th: Identifies the instructional elements of the procedures provided for in the Legal Regime for Urbanization and Building and revokes Ordinance No. 113/2015, of April 22nd, including templates for presentation of Terms of Responsibility for authors of architectural projects and specialties, and project coordinators
Ordinance No. 71-B/2024, of February 27: Approves the models for mandatory use of licenses, responses to prior communication, acts to be carried out by technicians and models of notices advertising urban operations, in accordance with the terms of Legal Regime for Urbanization and Building (RJUE), to be adopted by the Municipal Councils
Ordinance No. 71-C/2024, of February 27th: Makes the first amendment to Ordinance No. 1268/2008, of November 6th, which defines the model and requirements of the work book and establishes the characteristics of the work book. electronic work
Presentation of the Article Author:
Alda Vasconcelos is an architect specializing in Licensing and Construction Feasibility.
Her work aims to study new ventures, and guide clients and investors throughout the Licensing process, with the aim of finding the best solutions for their portfolio.
She has experience in several areas such as Residential, Tourism, Restaurants, Industry and Urban Planning, and has worked with a diverse portfolio of clients, national and international.
She strongly believes in Knowledge, investing in the power of good design combined with functionality.
She recently founded Enneia Studio - https://enneiastudio.com/ - an architecture firm that helps its clients create a connection with the spaces they inhabit, exploring the concept of living full of meaning (The Meaningful Living).
Comments