The Finnish government has introduced a groundbreaking amendment to the Construction Act, effective from the beginning of 2025. This reform aims to reshape the real estate sector by aligning it with climate policy, focusing on sustainability and reducing environmental impact. As a result, construction professionals and property developers face significant changes that require careful attention to compliance, new regulations, and a more sustainable approach to development.
1. Use of Low-Emission Building Materials
One of the most notable changes in the new Construction Act is the emphasis on sustainability, particularly regarding building materials. The law now requires builders and construction professionals to consider the environmental impact of their materials. In some cases, applicants for building permits may need to submit detailed plans outlining the emission effects of their chosen materials.
This reform will lead to an increase in documentation and compliance requirements, meaning that construction professionals will need to stay updated on the latest materials and sustainability standards. Builders must now plan their projects with care, ensuring that material choices consider the long-term environmental impact.
2. Life Cycle Assessment (LCA)
The new regulations introduce a mandatory life cycle assessment (LCA) for construction projects. The LCA evaluates the emissions throughout the entire lifespan of a building, from construction to demolition. This assessment will play a key role in obtaining building permits, often requiring more extensive planning and documentation.
For builders, this means more detailed design and planning, with decisions on material selection and energy use directly influenced by the LCA. While this adds to the workload, it will ultimately foster a more sustainable and environmentally responsible construction industry.
3. Digitalisation of Building Permits
To streamline the building permit process, the new Construction Act requires the digitalisation of permit applications. With the introduction of an electronic system, the permit process will become faster and more efficient. This shift will allow construction professionals to share data with building control authorities and other relevant stakeholders more easily.
While this change promises reduced paperwork and more efficient communication, builders will need to adapt to the new digital systems. Embracing this technology will make the process smoother and allow construction professionals to save time.
4. Energy Performance of Buildings
In alignment with Finland’s climate objectives, the new law introduces stricter requirements for building energy performance. The aim is to promote energy-efficient designs and encourage the use of renewable energy sources. For builders, this means a stronger focus on sustainable design and energy-efficient construction methods.
As a result, there will likely be a higher demand for green technologies, such as solar panels and energy-efficient insulation materials. Builders with expertise in energy-efficient solutions will be well-positioned to meet the new standards, capitalising on the growing trend of sustainable real estate development.
5. Regulation of Dismantling and Demolition
The new Construction Act also includes stricter rules regarding building decommissioning and demolition. There is now a more detailed approach to recycling demolition waste, with a requirement for a plan that incorporates recyclable materials and waste management.
This will require builders to consider these regulations during their planning and execution stages. Demolition projects will now involve more meticulous sorting and waste treatment, which could increase project timelines and costs. However, these changes align with broader environmental goals and promote a more sustainable lifecycle for buildings.
6. Strengthening Building Control
Another significant change under the new law is the strengthening of building control functions. Supervisory authorities now have greater power to identify and address potential construction errors during the building process. This means increased oversight throughout construction projects, with builders needing to ensure they meet all regulatory requirements.
While this additional oversight aims to improve the quality and safety of buildings, it also means that construction professionals will face more inspections and scrutiny. Builders must maintain high-quality standards and stay up to date with evolving regulations to avoid compliance issues.
Conclusion
The new Construction Act marks a major shift in how the construction and real estate sectors operate in Finland. These changes, while challenging, present an opportunity to drive the industry toward more sustainable, energy-efficient, and environmentally conscious practices.
Navigating the New Finnish Construction Act with 360 Business Law
At 360 Business Law, we are here to help navigate the complexities of the new Construction Act. Our team of experts offers comprehensive advice on compliance with environmental regulations, building permit processes, and contract requirements.
Let us help you prepare for the future and embrace the opportunities this reform brings. Reach out to 360 Business Law today to discuss how we can support your business through these legal changes.