Construction Permitting Efficiency Index

The reform of the system of issuing construction permits is one of NALED’s most recognizable initiatives. The reform first begun in 2014. with the amendment of the Law on Planning and Construction, and the implementation proposed the development of software for issuing electronic permits – CEOP, providing technical support and training for more than 5.000 public officials and applicants. All program activities were carried out by NALED in cooperation with the Ministry of Construction, Transport, and Infrastructure.

The World bank has ranked the implementation of e-permits as one of the biggest reforms in the international framework. Serbia advanced 177 places, from 186th to 9th place, over a period of five years, from 2015 and 2020, Serbia advanced 177 places, from 186th to 9th place, according to the Doing Business list.

In cooperation with representatives of the Property and Investment Alliance, NALED has been regularly monitoring the implementation of this reform by local self-government units (LSU), through the creation and publication of the Construction Permitting Efficiency Index.

The construction permitting efficiency index is a composite indicator that tracks the following indicators:

• participation of resolved requests in the total number of requests,
• participation of positively resolved requests in the total number of resolved requests,
• the speed of resolving requests, in comparison to deadlines prescribed by law.

At the level of each LSU (municipality or city), data from CEOP are analyzed based on the total number of requests submitted in the past year, number of resolved and positively resolved requests, in total. In addition, data on the number of days it took to issue the four types of construction permits (construction, location conditions, decision by article 145 and use permit) are processed in comparison to deadlines imposed by the law, and at the level of each individual LGU. Following data analysis, a composite efficiency index of LGUs' success in issuing electronic building permits is created, and based on this index, LGUs are graded. The ten most successful cities and ten most successful municipalities in issuing building permits in 2022 were presented in the annual report of the Property and Investment Alliance, as well as at the BFC club meeting.