Construction Code Legal Alert Series Issue 2: Licensing, Planning And Renovation Reforms

Unicase continues its Legal Alert series dedicated to the key provisions of Kazakhstan’s new Construction Code, which enters into force on 1 July 2026. This second instalment addresses a further set of structural reforms introduced by the Construction Code: a new ground for re-registration of construction licences following a change in ownership, the introduction of a two-year moratorium on amending detailed planning projects, the establishment of the design code as a binding element of the urban planning framework, the codification of a legislative regime for renovation, and the creation of a National Institute of Technical Standardisation in Construction.

Licensing re-issuance following change of ownership

The Construction Code introduces an additional ground for re-issuance of construction licences: a change in the composition of the shareholders (participants) of a licensed legal entity. Unlike the previous regime, where a change of ownership did not itself trigger a substantive review of licence qualifications, the licensing authority is now required to verify the licensee's continued compliance with the applicable qualification requirements when re-issuing a licence following a change in ownership ¹. As a practical matter, construction companies undergoing M&A transactions may be required to re-confirm the availability of qualified personnel, equipment and other resources required for the relevant licensed activities, potentially increasing transaction timelines and regulatory risk for acquisitions of licensed construction businesses.

Moratorium on changing detailed planning projects

Detailed Planning Project (PDP) is a statutory urban planning document developed on the basis of an approved master plan and governing the development of a specific part of a settlement. The adoption of a PDP is a prerequisite for the development of individual territories within a settlement. A PDP establishes the planning and zoning framework for the relevant area, including land-use allocation, building regulation lines, public infrastructure corridors, transport networks, engineering utilities, landscaping requirements and other urban planning restrictions ².

One of the most significant novelties is the ban on changing detailed planning projects more often than once every two years ³. Amendment to detailed planning project requires a formal adjustment procedure, including public consultations, approval by local representative bodies (maslikhats), and re-issuance in the state urban planning cadastre. In practical terms, this means that investors should factor the two-year correction frequency cap into land acquisition timelines and verify the current correction cycle status of the relevant detailed planning project as part of pre-acquisition due diligence.

Design code

Under the Construction Code, the design code is a set of requirements and rules aimed at creating a harmonious and stylistically consistent architectural appearance in built-up areas, including those relating to the placement of landscaping features, information and advertising structures, small architectural features, temporary structures, temporary retail premises used for commercial activities and/or catering, landscaping, lighting, façades and fencing, taking into account the specific characteristics of the development area ⁴.

To regulate further design code requirements, new rules on the development of design codes have recently been adopted, establishing a framework for regulating the visual and architectural characteristics of the built environment, including requirements relating to architectural style, colour schemes, building heights, façade treatments, landscaping and other elements of the urban realm ⁵.

It should be noted that PDP must be developed in accordance with the planning structure established by the relevant master plan, applicable urban planning regulations, the unified architectural appearance of the settlement, and the applicable design code ⁶. The design code serves as a regulatory instrument aimed at ensuring a harmonious and stylistically consistent architectural environment and forms an integral part of the urban planning framework governing the development of individual territories and functional zones. Accordingly, when preparing and implementing construction projects, developers are expected to ensure compliance with the urban design standards and visual parameters prescribed by the applicable design code.

Renovation

The Construction Code introduces a full-fledged legislative framework for renovation in Kazakhstan, defining renovation as a set of measures aimed at renewing existing construction facilities, including dilapidated and emergency buildings, to improve living conditions, modernise urban areas and create a higher-quality urban environment through reconstruction, restoration or redevelopment, including the demolition of obsolete buildings and the construction of new facilities. Renovation applies to construction facilities that are included in an approved renovation programme developed in accordance with applicable urban planning documentation ⁷.

To date, the secondary legislation adopted under this framework addresses certain aspects of the renovation process. In particular, the Ministry of Industry and Construction has enacted the Rules regulating the provision of temporary housing and/or compensation payments by an authorised company to owners of properties subject to renovation and/or real estate included within a renovation project. These Rules regulate the temporary relocation of affected owners participating in residential renovation projects implemented through a renovation shared-construction mechanism. The Rules require the authorised company and the affected owner to enter into agreement on relocation and(or) compensation payments at least 30 calendar days before the planned relocation date and require written notice of relocation to be provided at least 20 calendar days in advance. They further regulate the provision and acceptance of temporary housing, compensation payments based on rental and relocation costs, the extension of compensation where construction delays occur, and the allocation of replacement housing upon completion of the redevelopment project ⁸.

For investors, the principal legal and commercial risk remains the resettlement process. Although the legal framework has become more structured, Kazakhstan has limited experience with large-scale renovation projects involving substantial resident relocation. In addition, the current secondary legislation focuses primarily on temporary housing and compensation arrangements rather than the broader implementation of renovation programmes. As a result, practical issues relating to project selection, implementation mechanisms and investor participation may continue to evolve as the regulatory framework develops.

National Institute of Technical Standardisation

A notable institutional innovation introduced by the Construction Code is the establishment of a National Institute of Technical Standardisation in Construction. The Institute will be selected by the competent authority through a competitive process and will serve as the central body responsible for the development and improvement of Kazakhstan's system of construction-related technical norms.

The Institute's functions include conducting research aimed at improving state normative documents, preparing proposals for the development and revision of technical regulations and standardisation documents in the fields of architecture, urban planning and construction, providing technical support for standardisation activities, and maintaining a repository of technical normative documents. The Institute will also coordinate with public authorities and other participants in the technical standardisation system and contribute to the formation and updating of the national framework of construction standards ⁹.

The creation of the Institute signals a shift towards a more centralised and systematic approach to the development of technical construction regulation in Kazakhstan. For investors and EPC contractors, the reform may facilitate the modernisation of technical requirements and improve the transparency and predictability of future regulatory updates. Over time, the Institute may also become an important platform for incorporating international best practices into Kazakhstan's construction regulatory framework.

Footnotes

1 Article 55 of the Construction Code

2Article 78 of the Construction Code

3 Article 78.4 of the Construction Code

4 Article 1.11 of the Construction Code

5 Order No. 256 of the Acting Minister of Industry and Construction of the Republic of Kazakhstan dated 22 May 2026 On the Approval of the Rules for the Development of a Design Code

6 Article 78.2 of the Construction Code

7 Article 140 of the Construction Code

8 Order of the Minister of Industry and Construction of the Republic of Kazakhstan No. 12 of 26 March 2026 On the Approval of the Rules for the Provision by an Authorised Company of Temporary Accommodation and/or Compensation Payments to Owners of a Renovation Project and/or Real Estate Forming Part of a Renovation Project

9 Article 42 of the Construction Code

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.