The Armenian government has introduced a draft law amending the Code of Administrative Offenses to comprehensively regulate safety on construction sites.
Published on the e-draft legal platform, the proposal is based on an extensive analysis of existing challenges in the construction sector. The study revealed frequent violations of safety, sanitary, and environmental regulations, with key issues including air pollution, poor site organization, and insufficient worker protection.
The explanatory note highlights gaps in the current legislation, such as the lack of clear definitions for terms like "restoration," "reinforcement," and "expansion," which have often led to legal disputes. The new bill aims to address these ambiguities and introduces stricter requirements for construction site operations, including fencing, pollution prevention technologies, safe vehicle movement, and personal protective equipment for workers.
A significant focus of the draft law is the revision of the penalty system. Fines will now be calculated based on the scale and nature of construction work, with amounts linked to the contractual or estimated cost of the project.
The construction sector, which accounts for over 21% of Armenia’s GDP along with related industries, was a key driver of economic growth in 2023. According to the Central Bank, as of October 2024, loans issued to residents by Armenian banks totaled approximately $15.2 billion, a $2.8 billion increase compared to the previous year.
Mortgage lending alone accounts for $3.3 billion, or one-fifth of the total loan portfolio, having grown by $741 million, or 28.5%, over the past year.
