Construction In Malta

Malta: Construction

1. Is your jurisdiction a common law or civil law jurisdiction?

Malta has a hybrid legal system, combining elements of both civil law and common law traditions. Its core private law framework is derived from Roman law, while certain areas of commercial law reflect common law influence.

In the area of construction law, however, Malta is predominantly a civil law jurisdiction. Construction- related matters such as contractual obligations, liability for defects, and prescription are primarily governed by the Civil Code (Chapter 16 of the Laws of Malta).

Although common law influences emerge in practice, particularly through the use of international standard form contracts, the substantive legal framework governing construction remains rooted in civil law principles.

2. What are the key statutory/legislative obligations relevant to construction and engineering projects?

Construction and engineering projects in Malta are governed by a number of different regulations which impose obligations at contractual, planning, statutory, regulatory and procurement levels.

The Development Planning Act (Chapter 552 of the Laws of Malta) imposes obligations concerning development permission. No development may be carried out without the required permission or in breach of its conditions. Where development is undertaken without permission or in contravention of conditions, the Executive Council of the Planning Authority may issue stop notices and/or enforcement notices. Enforcement notices may require demolition, alteration, restoration of land to its original condition, or cessation of unlawful use. The Planning Authority also monitors development to ensure compliance with permits, licences and certificates issued concurrently with planning decisions. Developers, contractors, architects and site professionals are therefore under a continuing obligation to ensure that works are authorised and carried out strictly in accordance with approved permits and applicable policies.

While the Development Planning Act regulates whether works are permitted, the Building and Construction Authority Act (Chapter 623 of the Laws of Malta) further provides minimum statutory requirements and regulations which must be observed by all stakeholders before the commencement and during the execution of building and construction works. The Building and Construction Authority Act establishes the Building and Construction Authority and provides for the development and implementation of a National Building and Construction Code, the process for which commenced in early 2025 and is targeted to be completed over a three- year period. The Building and Construction Authority Act governs the regulation, oversight and enforcement of demolition, excavation and construction activities in Malta, including both permanent and temporary works, and places particular emphasis on matters such as ensuring safe construction practices, health and safety on site, safeguarding third parties and neighbouring properties, professional accountability, licensing, technical standards, structural integrity, fire safety and environmental protection. Compliance with these standards is mandatory and no person may carry out prescribed construction activities unless properly qualified and licensed in accordance with regulations. Licences may be suspended or revoked for misconduct, negligence, or non-compliance with regulatory requirements, and enforcement notices may be served on owners, contractors, clients or other responsible persons requiring compliance within a specified period. This regime imposes statutory obligations relating to professional competence, adherence to technical standards and regulatory accountability.

Where construction projects are procured by public bodies, the Public Procurement Regulations (S.L. 601.03 of the Laws of Malta) apply. Public works contracts must follow the prescribed procurement procedures and may only be awarded where the tender complies with the procurement documents and the tenderer satisfies the relevant selection criteria. In addition, the main contractor remains liable for the acts or omissions of its sub- contractors. Accordingly, contractors engaged in public projects are subject to statutory duties of procedural compliance, transparency and proper contract performance.

Beyond performance obligations, the Civil Code governs liability in construction disputes, including contractual liability for defective or incomplete works, damages for non-performance or delay, and the respective rights and obligations of employers and contractors. It also regulates the prescription of actions, setting time limits within which claims must be brought.

Construction and Engineering projects are also subject to other laws relating to health and safety and the environment, which will be discussed in question 3 below.

3. Are there any specific requirements that parties should be aware of in relation to: (a) Health and safety; (b) Environmental; (c) Planning; (d) Employment; and (e) Anti- corruption and bribery.

a. health and safety;

Health and safety on construction sites in Malta is principally regulated by the Health and Safety at Work (Minimum Health and Safety Requirements for Work at Construction Sites) Regulations (S.L. 646.27 of the Laws of Malta). The Regulations establish minimum standards and impose specific duties on clients, project supervisors, contractors and workers.

Before works commence, the client must appoint a Project Supervisor for Health and Safety Matters, who must be a competent person registered with the Occupational Health and Safety Authority. Works may not start or progress unless such appointment is validly made and notified to the Authority, and failure to do so constitutes an offence. The ‘client’, namely the natural or legal person for whom a project is carried out, must also ensure that a health and safety plan is drawn up prior to the setting up of the construction site, and that a health and safety file is compiled and kept available for future works. For larger projects exceeding specified thresholds of duration or workforce, a prior notice must be submitted to the Authority at least four weeks before works commence.

The Project Supervisor coordinates health and safety both at design and execution stages. The supervisor must prepare and update the health and safety plan, particularly where works involve particular risks such as excavation, demolition or work at height. During execution, the supervisor must coordinate preventive measures, organise cooperation between contractors, carry out inspections, issue written reports identifying hazards and corrective measures, and may order the suspension of works where there is a serious and imminent risk.

Contractors must cooperate with the supervisor, comply with directions, and implement the preventive and protective measures set out in the health and safety plan. They are required to carry out a written, suitable and sufficient risk assessment for each project, keep it updated, and implement the protective measures identified. Contractors must also ensure that works receive adequate information, instruction and training, and comply with requirements concerning personal protective equipment and work equipment.

b. environmental issues;

The Environmental Permitting (Procedure for Applications and their Determination) Regulations, 2025 (Subsidiary Legislation 549.172), enacted under the Environment Protection Act (Chapter 549 of the Laws of Malta) establish a framework governing any activity, operation or intervention that may have an environmental impact, and they apply to projects processed by the Environment and Resources Authority (ERA). Any activity listed in the First or Second Schedule to the Regulations cannot be carried out without an environmental permit issued by ERA.

The Regulations introduce a three-tier system of environmental permits, depending on the nature and environmental risk of the activity:

• Level I – low-risk activities, subject to shorter processing and consultation periods.
• Level II – activities with moderate environmental implications.
• Level III – high-risk or industrial-scale activities, subject to the most rigorous assessment and the longest processing timeframe.

The First Schedule lists the activities which require prior permitting, and includes quarrying operations, waste management facilities, storage and treatment of construction and demolition waste, marine discharges, aquaculture, fuel storage, and industrial emissions- related activities.

The Second Schedule introduces additional activities that must obtain clearance and subsequently full permitting, including land reclamation, cement packaging facilities, cement terminals, shipyards, animal slaughterhouses and certain manufacturing operations.

Environmental permitting must be considered at the earliest stages of project planning and due diligence. Activities involving excavation, quarrying, waste handling, reclamation, discharge of effluent, fuel storage, industrial processing or works within protected areas may require an environmental permit in addition to development planning permission.

Failure to secure the required environmental authorisation may result in refusal of the application, suspension of works, penalties, revocation of permits, or enforcement proceedings.

e. planning;

Planning requirements for construction projects are mainly governed by the Development Planning Act.

As a general rule, no “development”, which includes building operations, engineering operations, material changes of use, and certain alterations, may be carried out without a development permit issued by the Planning Authority, unless expressly exempted by law.

The Planning Authority, established under the Development Planning Act, is the competent authority responsible for the receipt, processing and determination of development applications. Development planning in Malta is regulated through approved plans, policies and regulations. These instruments are binding and must be taken into account when assessing applications for development permission. Accordingly, parties must ensure that proposed works conform not only to the statutory requirements of the Development Planning Act but also to the applicable planning policies and local plan provisions in force at the time of the application.

An application for development permission must be submitted in the prescribed form and manner and is subject to public consultation procedures. The Authority is required to maintain a public register of all applications and decisions, including the relevant plans and reports, and interested parties may submit representations within the consultation periods. For certain categories of development, including major projects, an Environmental Impact Assessment or other form of assessment may be required in accordance with applicable regulations. Non- compliance with these requirements may result in refusal of permission or subsequent legal challenge.

Where permission is granted, it is subject to conditions, and a commencement notice must be submitted by the architect (perit) on behalf of the applicant at least five days prior to the commencement of works or utilisation of the permit. In addition, development permission fees and infrastructure contributions are payable in accordance with the Development Planning Act. Failure to adhere to the terms and conditions of a development permit, or the carrying out of works without permission, constitutes illegal development and exposes the parties to enforcement action, administrative penalties and potential criminal liability.

d. employment; and

Employment is mainly regulated by the Employment and Industrial Relations Act (Chapter 452 of the Laws of Malta). This Act governs contracts of employment, recognised conditions of employment, protection of wages, working time, leave entitlements, termination, unfair dismissal, discrimination, collective bargaining and the jurisdiction of the Industrial Tribunal.

In the construction sector, the general framework under Chapter 452 is supplemented by the Construction Wages Council Order (Subsidiary Legislation 452.08 of the Laws of Malta), which establishes the Construction Wages Council and defines its field of operation, covering employees engaged in building, civil engineering, mechanical and electrical engineering works, marble works and lime kilns, and the Construction Wages Council Wage Regulation Order (Subsidiary Legislation 452.59 of the Laws of Malta), which sets out binding minimum conditions for employees within the sector, including minimum wages, normal working hours, overtime rates, rest periods, vacation leave, sick leave and other statutory entitlements.

e. anti-corruption and bribery.

At the institutional level, the Permanent Commission Against Corruption Act (Chapter 326 of the Laws of Malta) establishes an independent Permanent Commission Against Corruption vested with powers to investigate alleged or suspected corrupt practices involving public officers and persons entrusted with public functions.

Corruption and bribery offences are criminalised under Sub-title IV, Part II, Book First of the Criminal Code (Chapter 9 of the Laws of Malta).

Malta has also adopted a National Anti-Fraud and Corruption Strategy in 2021 (NAFCS), which aims to strengthen prevention, deterrence, detection, investigation and prosecution of fraud and corruption, while promoting transparency and accountability across public administration. The Internal Audit and Investigations Department published an updated National Risk Assessment on Fraud and Corruption in 2024, which is subject to biennial review in accordance with the NAFCS Action Plan.

The Public Procurement Regulations (Subsidiary Legislation 601.03) impose transparency obligations throughout the tendering process and at the contract award stage. Where there is evidence of collusion or corruption, a tender would be considered as irregular. The authority responsible for the tendering process is required to exclude economic operators from participation in a procurement procedure who have been the subject of a conviction by final judgment for, among other reasons, corruption, fraud or money laundering, in accordance with the mandatory exclusion grounds set out in the Public Procurement Regulations. A public may likewise not be awarded to an economic operator who, during the procurement procedure, is subject to a conflict of interests.

Any interested person may also challenge the tendering process and/or the award of any public contract before the Public Contracts Review Board and the said Board’s decision is subject to a further appeal to the Court of Appeal, sitting in its superior jurisdiction.

The Protection of the Whistleblower Act (Chapter 527 of the Laws of Malta) protects public and private employees and workers making protected disclosures concerning bribery, corruption or other improper practices and wrongdoings, and prohibits detrimental action against such persons.

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