Construction activity is defined under Law 41/2015, which establishes the legal framework applicable to the exercise of construction activities in Portugal. This legal regime is not limited to traditional construction works, but also covers the manufacture, assembly, installation and maintenance of infrastructure associated with renewable energy, namely photovoltaic power plants.
Construction licenses are organized into categories and subcategories, which include, inter alia, the following activities:
- mechanical assembly of structures and solar panels.
- electrical and mechanical installations.
- hydraulic works.
- building construction.
- infrastructure and transport networks.
- installation and assembly of photovoltaic power plants, among others.
Law 41/2015 of 3 June, in conjunction with Ministerial Order 274/2011 of 29 September, defines the classes of authorized works according to their respective value, ranging from Class 1 (works up to EUR 200,000) to Class 9 (works exceeding EUR 19 million).
Portuguese law provides for several licensing regimes applicable to construction activities, covering both national and foreign companies, namely:
- a contractor’s license (alvará) for public or private works, allowing the execution of works up to the economic limit corresponding to the assigned class.
- a contractor’s certificate for public or private works, applicable to works whose value does not exceed EUR 40.000.
- licenses applicable to companies established in other Member States of the European Union, whether for the pursuit of activities without permanent establishment in Portugal or for the occasional and temporary provision of services.
In order to obtain a contractor’s license for public or private works, companies must demonstrate their commercial reliability, technical capacity and financial capacity, and must also take out occupational accident insurance in accordance with the applicable Portuguese legislation.
With regard to technical capacity — required exclusively for the granting of a public works contractor’s license — companies must ensure the prior registration of their technical staff with the Portuguese Engineers’ Association (Ordem dos Engenheiros) or the Association of Technical Engineers (Ordem dos Engenheiros Técnicos), depending on the nature of the works to be carried out. The number of technicians required, as well as their qualifications, varies according to the categories and subcategories applied for.
The fees payable to IMPIC for the issuance of contractor licenses are set out in Ministerial Order No. 261-A/2015, which regulates the amounts applicable to licensing procedures, certificates, licenses and other administrative acts associated with construction activity.
Contractor licenses in Portugal, the processing of which is carried out by IMPIC – the Institute for Public Markets, Real Estate and Construction, I.P., are subject to a progressive fee system, determined by reference to the class of license applied for.
In all cases, the initial application is subject to a fixed fee of EUR 75.00, with the financial obligations increasing significantly as higher licensing classes are requested.
- Licence issuance fee
- Annual licence renewal fee
The Public Law Department of Belzuz Abogados, S.L.P. – Portuguese Branch has extensive experience in providing legal advice to national and international companies in connection with procedures for obtaining contractor license before IMPIC – the Institute for Public Markets, Real Estate and Construction, I.P.
The team of lawyers supports its clients in construction and energy system installation projects of various types, namely solar parks, photovoltaic, thermal, electrical and wind projects, ensuring strict, efficient and legally secure regulatory compliance in Portugal.