CIR 08/24 | Declarations for Y-plates (4)

In the latest development of the ongoing saga related to the Y-plate licence renewals, the Ombudsman, through the Commissioner for the Environment and Planning (CEP), has published its Opinion on a complaint filed by an operator “that highlights significant legal anomalies and administrative irregularities surrounding the issuance and renewal of LPTS (Y-Plate) Operator’s Licences in Malta over the past year”.

The CEP made the following statements:

  1. A planning permit for a public service garage is required regardless of the number of cars accommodated in a garaging facility;
  2. There are regulatory inconsistencies in the role of the perit as envisaged in the same legal notice;
  3. The role of periti under these regulations is limited solely to new applicants without an existing operator’s licence;
  4. The Kamra tal-Periti “is correct in issuing the corresponding Circular to Architects, instructing them to ensure that the garage possesses a valid public services garage PA permit.”

 

In concluding the Final Opinion, the CEP called on Transport Malta “to convene discussions with the Planning Authority, the [Kamra tal-Periti], and the Operators to facilitate the necessary amendments to S.L.499.68”.

 

Periti are thus advised to proceed as per circular CIR 04/24 until further notice.

 

Perit André Pizzuto
President

 

Read the full Final Opinion

 

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CIR 07/24 | Periti declarations in support of contractors’ licence applications

Many Periti will have been approached by contractors asking them to sign a declaration confirming their competences in support of their application to receive a licence to operate as contractors.

Schedule I of S.L.623.09 (Construction Industry Licensing Regulations) stipulates that all workers engaged in demolition, excavation or construction should possess specific qualifications in the respective activity “or hold any other qualifications or experience which the Committee considers to be equivalent or a suitable alternative to this qualification”.

While courses in demolition and construction do exist – leading to the masons’ licence – there is no formal qualification for excavation operatives as yet.

Thus, the BCA and Contractors Licensing Committee have approached the Kamra to discuss whether, as an interim measure, we would agree to introducing a system wherein periti would provide a reference confirming the skills of contractors.

It was clear to the Council that without our agreement to such a proposal, the entire industry would seize as very few contractors, if any, would be eligible for a licence without the alternative system being proposed.

The Kamra thus agreed to the concept in principle and proceeded to draft the wording for the eventual declarations published by the BCA.

 

The wording was crafted to ensure the following:

  1. The declaration made by periti are limited ONLY to the works execution they have direct experience on.
  2. Periti employed by or otherwise directly connected to contractors would not be coerced into signing declarations they do not feel comfortable with or which compromise their independence and integrity, and to ensure that they are not placed in a position of conflict of interest.

 

The statutory requirement is that contractors demonstrate the skills listed in Schedule I (and the forms) in at least three projects over a period of two years.

The Kamra was assured that this is an interim measure and will be replaced with formal training of workers as soon as practicably possible. We are also working on this through the National Building Council, which is a joint-venture between KTP and MDA.

The Council recommends that periti exercise their professional judgement in signing these forms, crossing out any parts they feel are not applicable to their direct experience be upheld. It goes without saying that you should refrain from signing such declarations if your personal experience of the contractor’s work is inadequate.

You are entitled to charge fees for the signing of such declarations.

In case of difficulty, please do not hesitate to contact the Council through our usual channels.

 

Perit André Pizzuto
President

 

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CIR 06/24 | Dangerous structures approvals

In the past few months, there were a number of very serious partial or near collapses that never became public. Periti had reported the situations to us in confidence to seek our assistance and advice, as well as moral support for the personal predicament they were facing through no fault of their own.

The failings were manifestly bureaucratic ones, with both the Planning Authority and the Building and Construction Authority unable to react and accommodate the urgency and speed that was required. Thankfully, the responsible ministers and the CEOs of both entities were receptive to our insistence that the discretionary powers granted to them in the law should be exercised and that the power vested in the responsible periti through the Code of Police Laws to direct the works unfettered by the said authorities should be upheld.

Thankfully, in all these cases, the speed and decisiveness shown by all involved ensured that the cases remained unreported by the press, as loss of life was prevented, and further structural failures were averted.

 

These experiences served also to sensitise those in authority to the need to eliminate unnecessary processes that prevent periti from upholding their main responsibility of safeguarding public safety.

 

Discussions were held with both the Planning Authority and the Building and Construction Authority in recent months to curtail the unnecessary paperwork and retain only what is strictly necessary to safeguard the public interest.

 

Planning Authority process

As a result of these discussions, in July the Planning Authority agreed to recognise that as per S.L.552.05, dangerous structure authorisations are NOT development permits and that therefore, they:

  1. Do not have an expiry date;
  2. Do not require a commencement notice to be filed.

A PA circular confirming the above is expected imminently.

 

Building and Construction Authority process

Similarly, the BCA has agreed, pursuant to S.L.623.06 regulation 25, to waive certain documentation from being filed by Periti on behalf of their clients. This was confirmed in a press release published by the BCA yesterday.

Through this streamlined procedure, periti are being empowered to recognise the urgency of repair works and to merely notify the BCA via a dedicated email address through which only the responsibility forms and insurance policy need to be filed. An automatic authorisation will be transmitted immediately to the perit, allowing works to commence immediately.

It is recommended that in such emergencies, only contractors in possession of annual CAR are engaged for emergency works, since the local insurance companies are still insisting on method statements to be filed for smaller or less experienced contractors.

Over the subsequent twelve hours, the perit should upload the authorisation, the responsibility form, and the insurance on eApps. While some may find this frustrating, unfortunately the IT system does not allow BCA’s mail servers to communicate directly with PA’s eApps. Nevertheless, such uploads should cause negligible inconvenience, particularly considering the significant efficiency improvements the current system is bringing about.

 

 

This is of course only a small step forward in the greater scheme of things. However, we have witnessed a marked change in the PA and BCA’s approach towards periti which augurs well for future reforms that are in the pipeline.

 

Perit André Pizzuto
President

 

 

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CIR 05/24 | Update on Tender for Property Valuations issued by CFR (2)

In 2022, the Council of the Kamra tal-Periti was alerted to a tender published by the former Commissioner for Revenue (CFR), now renamed Malta Tax & Customs Administration (MTCA), calling for periti to draw up property valuations at a capped rate of €25 excluding VAT.

The Council had immediately issued a directive instructing periti not to submit bids for this tender due to its “unacceptable terms, which undermine the scope of the due diligence and research necessary for the preparation of a valuation report, as well as underestimate the associated liabilities”.

Urgent meetings were held with the Commissioner for Revenue and Director of Property Tax to discuss the way forward. Given that the tender could not be amended following its publication, an agreement was reached such that following its closing date, the CFR would republish the tender with fresh terms in agreement with the Council of the Kamra, including considerably improved financial terms that reflect the dignity and respect we should all expect for our profession.

The above background history was explained in a circular published soon after. A meeting was also held with a number of periti who had already been giving similar services to the CFR for a number of years through an arrangement which the National Audit Office declared to be non-conformant with the public procurement regulations. They were also kept regularly informed of meetings and communications exchanged between the Council and the CFR, and were in agreement with our approach.

 

Regretfully, a number of periti –  indeed the same periti who were being kept continuously informed about the ongoing negotiations – chose to outmanoeuvre the Council to try to gain an advantage over ethical and responsible members of the profession who chose to diligently follow the directive and await the outcome of the negotiations the Council was conducting. This resulted in a wholly unnecessary two-year delay during which members of the profession could have benefitted from the improved terms eventually negotiated, which we are happy to announce below.

 

Indeed, rather than the measly and demeaning sum of €25 excl. VAT per report, as a result of our negotiations successful bidders will be earning €50 excl. VAT per report for all properties having a contract value of less than €1 million, and €150 excl. VAT per report for all properties having a contract value of €1 million or more.

The Council considers this a suitable compromise, considering also that the use of the term “valuation” has been dropped from the tender document in favour of the term “review”. This shift in terminology is felt to more appropriately reflect the actual exercise to be performed by periti who successfully bid for the new tender.

The tender published by the MTCA via the Department of Contracts is linked below:

CfT: CT2136/2024 – Framework Agreement for the Provision of Professional Services of Periti to provide reviews of Properties to the Malta Tax and Customs Administration (MTCA)

 

The Council looks forward to building further on the positive relationship established with the MTCA, and remains committed to representing the interests of the profession at all times to the best of its abilities.

 

Perit André Pizzuto
President

 

 

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CIR 04/24 | Declarations for Y-plates (3)

Reference is made to circulars CIR 03/2023 and CIR 04/2023 relative to the ongoing saga related to the housing of private cabs, commonly referred to as Y-plates, when not in use.

We are informed that Transport Malta (TM) is issuing letters informing the public that it shall no longer be requesting a development permit for a public service garage from applicants for an operator licence or its renewal. The purpose of the permit was indeed to confirm compliance with the law.

It is important for members of the profession to understand that a change in submission requirements for Y-plate operators does not in any way imply that the regulations have changed.

Indeed, when being asked to prepare declarations pursuant to sub-regulation 5 (4) (d), periti are to ensure the following:

 

  1. Verify that the garage is covered by a public service garage permit issued by the Planning Authority

 

While TM is the national authority regulating transport operators, land use is regulated by the Planning Authority (PA). Thus, unless authorised by the PA, no garage can be used for light passenger transport service vehicles, commonly referred to as cabs.

This is indeed confirmed in regulation 3 of S.L. 499.68 which defines garaging facility as “any premises which is (sic) off-street and in which the parking or garaging therein of motor vehicles is permitted by the planning authority permit.”

 

 

  1. Verify that there are no permit conditions PROHIBITING the use of the garage for public service vehicles

Most recent development permits carry the following standard condition:

 

1 n) The garage/parking space shall only be used for the parking of private cars and shall be kept available at all times for this purpose.

 

Older permits may have different wording but intend similar outcomes.

In such cases, the garage can only be used for purposes ancillary to the main use of the building, be it residential or commercial.

Periti are required to advise their clients that a change of use development application is required if such permit condition is attached to the property. Only after the commencement notice of such permit is filed can the afore-mentioned declaration be produced.

Among the many issues that this raises, is the PA policy on minimum parking requirements. The change of use of a private garage to a public service garage will inevitably also entail the payment of CPPS.

Please be aware that the TM’s minimum requirements for public service garages have changed from a minimum of 24 sqm accommodating a minimum of two vehicles, to a minimum of one vehicle with no explicit minimum floor area. It is understood, however, that the minimum parking requirements in DC15 are to be used to establish the minimum size of a garage in the case of a change of use.

 

 

 

Periti are thus to ensure that, when drafting afore-mentioned declarations, the cabs can be accommodated in the garage both physically AND legally.

 

The Council will continue to monitor the situation and will advise should there be any updates. Regretfully, despite a short meeting in March with the responsible Minister, we have not had any consultation meetings on this issue since October 2023.

 

Perit André Pizzuto
President

 

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CIR 03/24 | BCA Forms Resolution

Following Directive DIR 02/2024, a series of meetings were held with the Ministry of Justice and Construction Reform and the Building and Construction Authority to discuss the need to reduce bureaucracy and eliminate unnecessary forms, so periti can focus on what is truly important for their professional role: high quality design and general site supervision.

Following our final meeting held yesterday afternoon, on behalf of the Council I am pleased to inform you that the form “Declaration to the BCA regarding Third Party Property Condition Reports and Excavation Affected Complexes” has been repealed, and that the situation that existed prior to the introduction of the form has been reinstated. Needless to say, the obligations of developers and periti with respect to condition reports as laid out in S.L.623.06 still apply.

Regarding the other form “Certificate of Insurance”, it has been clarified that this will be replacing the insurance policy document and statutory statement. Thus, going forward periti will only be required to file this certificate declaration, which will be automatically prepared and supplied by the insurers to policy holders.

BCA has also informed us that they are in the final stages of reaching an agreement with local insurers to provide insurance policy renewal notifications directly to the BCA.

Finally, the BCA has accepted to shortly reinstate an exemption form for dangerous structures similar to Form 25c, which had been unexplainedly withdrawn by previous BCA management in 2021/2022. The purpose of such a form is to ensure that in emergency situations related to collapse or imminent danger of collapse, the BCA clearance will be expedited. Updates on a new Form 25c are expected to be announced soon.

We thank the Ministry and BCA for their sensitivity on this issue, and trust that the relationship that has been built in recent weeks will result in further positive improvements in the industry, in the interest of public safety and that of the profession.

As a result of this agreement, the Council hereby notifies all members of the profession that DIR 02/2024 is hereby repealed.

 

Perit André Pizzuto
President

 

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CIR 01/24 | DNO Processing Streamlined

The Council is pleased to announce a significant update in the processing of notifications filed under Development Notification Order (DNO) (S.L.552.08), which took effect on Monday, 15 January 2024 following a series of productive discussions with the Planning Authority (PA).

Echoing the sentiments expressed in the email I had sent out on 23rd October 2023, our stance has consistently been clear and firm: DNOs are permitted developments by law. The responsibility of the PA in this context is not to issue permissions but to confirm that the proposed works are included under the specific classes of permitted development.

After careful consideration, the PA has aligned with our perspective, revising its internal policy. This revision entails a strict limitation of external consultations solely in those circumstances permitted by the regulations, except for class 16. This shift in policy is among the significant steps toward simplifying the planning process, removing unnecessary administrative complexities, and thereby enhancing the clarity and efficacy of our professional practices.

Acknowledging this update as a step forward, the Council remains vigilant in monitoring its implementation and is prepared to address any emerging issues. Furthermore, we continue our efforts in advocating for more sensible processes that ensure both quality and efficiency in our work. We encourage all members to acquaint themselves with this recent policy change and to actively report any discrepancies or challenges encountered in its application.

Your continued support and active participation have been pivotal in achieving this milestone. Rest assured, the Council is steadfast in its commitment to advancing the interests of our profession, ensuring that our practices are not only effective but also fully compliant.

Perit André Pizzuto
President

 

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CIR 04/23 | Declarations for Y-plates (2)

The Council is disappointed to note that despite Transport Malta’s promise to consult with it prior to issuing a new legal notice, LN 246 of 2023 was released without any such consultation.

The planning policies to date make no distinction between the number of vehicles owned or garaged by an individual. The standard condition in most permits for residential garages states:

“Any garages/parking spaces shall only be used for the parking of private cars and shall be kept available at all times for this purpose.”

The definition of garaging facility in the legal notice issued is:

“Any premises which is (sic) off-street and in which the parking or garaging therein of motor vehicles is permitted by the relevant planning authority permit.”

The Council therefore urges members of the profession to ensure that any declaration pursuant to light passenger transport services and vehicle hire services is underpinned by the required development permit for public service garages even if there are 5 or fewer cars being parked within the “garaging facility”.

 

Perit André Pizzuto
President

 

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CIR 03/23 | Declarations for Y-plates

The Council of the Kamra tal-Periti has met with Transport Malta senior management to discuss the requirements for periti declarations relative to garages utilised to store chauffeur-driven cars.

Transport Malta was receptive to the concerns expressed by the Kamra and informed its representatives that it shall be publishing a new legal notice that will be replacing
L.N. 111 of 2023. TM promised to consult the Kamra prior to bringing it into force.

TM also advised that we notify all periti to keep all declarations relative Y-plates on hold pending the new legal notice.

 

Perit André Pizzuto
President

 

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CIR 02/23 | Rural Lease Valuations

The Council of the Kamra tal-Periti has been alerted to a legal notice directing periti to produce fictitious values for agricultural land that have no underpinning in the market.

It appears that the purpose of this exercise is to artificially contain the value of farmland, and direct periti away from reporting a fair market value in line with international and national valuation standards.

In view of the above, the Council is advising periti not to file valuation reports in accordance with such legal notice until further notice as such reports may give rise to potential professional negligence, besides exposing periti to litigation by aggrieved parties due to the apparent unconstitutionality of such subsidiary legislation.

 

Perit André Pizzuto
President

 

 

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