Construction Act streamlines construction and promotes emission reductions and circular economy

The Construction Act entered into force on 1 January 2025. The time limit for the processing of construction permits, calculation of the carbon footprint of a building and provisions concerning building design in data model format and machine-readable data entered into force in January 2026. The Construction Act contributes to the fight against climate change, promotes a circular economy, streamlines construction and supports the digitalisation of the built environment.

• Construction Act | Finlex (in Finnish)

The Government approved the Construction Act on 1 March 2023. In line with the Programme of Prime Minister Petteri Orpo’s Government, amendments were made in the Construction Act that will reduce administrative burden and bureaucracy and clarify the right of appeal. This series of amendments is included in the Construction Act that entered into force in the beginning of 2025.

Until the entry into force of the Construction Act, provisions on construction were laid down in the Land Use and Building Act adopted in 2000. Since then, there have been major change in the context and environment where construction takes place.

• Land Use and Building Act

One type of permit and higher threshold for permits streamline construction

The Construction Act simplifies the permit system as the building permit, action permit and notification of action merge into one type of permit, the construction permit. 

The threshold for construction projects that require a permit was raised so that in future a small storage building of less than 30 square metres or a backyard sauna, for example, can be built without a permit, as long as this is in compliance with the construction and zoning regulations and provisions concerning construction on shores. In future, too, all buildings will still be counted towards the building right of the plot.

From 1 January 2025 a construction permit is required for

• residential buildings 
• outbuildings at minimum 30 square metres or 120 cubic metres in size 
• roofed structures at minimum 50 square metres in size 
• structures for public that can be used simultaneously by at least five natural persons 
• masts or chimneys at minimum 30 metres in height 
• lighted advertising signs at minimum 2 square metres in size 
• geothermal wells 
• areas constructed for a specific activity that affects the use of surrounding areas. 

A municipality may provide in its building ordinance that no construction permit is required if the project can be deemed minor.

Even if no construction permit is required, construction must be in compliance with

• the Building Code (including fire safety regulations)
• zoning plan regulations 
• the building ordinance.

The building right remaining on the building plot must also be taken into account. If there is no building right left, a permission to derogate is required for construction. 

A time limit has been set for processing construction permit applications. Permit applications must be processed within three months. However, decisions on construction permit applications concerning a construction project that is difficult or exceptionally difficult in terms of the design task and clean transition placement applications must be made within six months. 

Tools for mitigating climate change and promoting circular economy in construction

The Construction Act guides to decarbonisation in construction by taking into account the negative and positive impacts on climate throughout the life cycle of a building. In practice, this is implemented by the decrees to be adopted under the new act.

The decrees on the climate declaration, list of construction products and threshold value for carbon footprint will be included in the National Building Code of Finland. 

• Decree of the Ministry of the Environment on the Climate Declaration and List of Construction Products of a Building (in Finnish)

The act will also promote a circular economy in construction. According to the new essential technical requirements, buildings must be designed so that they have a long service life and are able to be adapted. For new buildings and buildings to be demolished, a report is required on the materials used and released and on the soil and rock materials removed from the building site and the amount of hazardous waste.

• Decree of the Ministry of the Environment on the Report on Demolition Materials and Construction Waste of a Building (in Finnish)

Construction Act harmonises verification of qualifications of persons serving in building design and site management tasks

With the new Construction Act, the building design and site management tasks have become regulated professions.

Designers and site managers must prove that they are qualified to undertake conventional, difficult, very difficult and exceptionally difficult design and site management tasks by a certificate issued by a body authorised by the Ministry of the Environment. Provisions on the qualification requirements for designers and site managers are laid down in the Construction Act by difficulty classes. Provisions on the procedures to be followed in verifying the qualifications and the bodies authorised by the Ministry of the Environment that grant qualification certificates are laid down in the Act on the Verification of the Qualifications of Persons Serving in Building Design and Site Management Tasks.

• Act on the Verification of Qualifications

According to the transitional provision included in the Construction Act, a person who upon the entry into force of this Act holds an approval granted by the construction supervision authority for corresponding tasks is also considered a designer and site manager fulfilling the qualification requirements.