On the 5th of February 2016 the Parliament of Mongolia enacted the revised “Construction Law” (“Revised Law”) which was published in the 9th edition of the “State Gazette” publication on the 4th of March 2016. The Revised Law came into force on the day of its enactment and thus replaces the previous Construction Law (“2008 Law”) which was enacted on the 5th of February 2008. An individual of a foreign nationality must have obtained the permissions necessary to carry out his/her profession according to the relevant procedures and regulations. A foreign legal entity is required to have obtained a special license [as is the case for Mongolian entities also], under Articles 19 and 20 of the Revised Law. Further, unless stated otherwise by Mongolian laws, a foreign entity carrying out construction works financed by the state or local budget or through foreign loans will need to contract with a Mongolian entity in order to do so. This provision is discriminatory and recorded as a restriction on governemnt procurement under the OECD FDIRRI.
"Article 4.Definition of the terms of the Law
4.1.The following terms used in this Law shall be interpreted as follows:
4.1.1."buildings and facilities" shall mean facilities such as residential, civil, industrial, energy, communication, water, and petroleum buildings, water supply, dams, including its engineering system;
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Article 10.Classification of buildings and facilities
10.1.The buildings and facilities shall be classified into the following categories depending on complexity:
10.1.1.buildings and facilities that don't require construction work permits;
10.1.2.buildings and facilities of low complexity;
10.1.3.buildings and facilities of medium complexity;
10.1.4.highly complex buildings and facilities;
10.1.5.exclusively complex buildings and facilities.
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Article 18. Engage in Construction Activities
18.1. Construction activities will be conducted on basic licenses and construction permits, according to the terms and provisions of this law.
18.2. State administrative body for the construction of structures are classified related facilities specified in Article 10.1.2, 10.1.3, 10.1.4, 10.1.5 dispense legal entities with a license issued by authorities.
18.3. Construction categorized as specified in Article 10.1.1 of this law does not require a license specified in Article 19.1.2 of this law, the construction of the facility.
18.4. Registration process will be carried out by non-governmental and professional organizations to provide construction operating license set forth in Article 18.2 of this law, the construction sector entities.
Article 19. Licensing of Construction Activity
19.1. The following construction activities shall be conducted on the basis of the license:
19.1.1. Develop projects related to construction category referred to in Article 10.1.2, 10.1.3, 10.1.4, 10.1.5;
19.1.2. Perform construction work related to construction category referred to in Article 10.1.2, 10.1.3, 10.1.4, 10.1.5;
19.1.3. Engaging lifting plant and its parts production, assembly, repair and maintenance;
19.1.4. Production of load-bearing structures, structures, items, materials, its raw materials and flammable, toxic, energy-saving products.
19.2. Authorized persons referred to in Article 34 of this law maintain a register of legal entities of construction activity license and submit to the authorities referred to in Article 35, and the construction authority of the state control law.
Article 20. Licensing
20.1. License the construction of a decision within 10 working days of receipt of the application.
20.2. Tower license, support and retaining walls higher than 30 meters, 60 meters over the span of the facility, with more than 16 floors construction and design of water, heat and power supply facility and perform construction work will be for only a source of construction.
20.3. In addition to those specified in Article 11 of the legal entity operating license application, construction operating license to submit the following documents entity referred to in Article 34 of this law:
20.3.1. Information on the staff;
20.3.2. List of tools, equipment, hardware and specifications, information on the production of construction;
20.3.3. A copy of the agreement to use the party this Article 20.3.2, equipment and other necessary equipment, machinery or equipment specified in case law;
20.3.4. Construction conclusion of the probability of the design of the facility set forth in Article 20.2 of this law.
20.4. In connection with the awarding of construction activity license as provided in Article 
20.3 of this law shall be prohibited to require other documents.
20.5. Licensing of construction activity will be a five-year period.
20.6. Licensing of construction activity may extend the period specified in Article 20.5 of this law.
20.7. Legal entities with construction activity special permission to carry out activities within the construction permit provided for in Article 26 of this Law.
20.8. The following cases reported construction problems revoked license by the administrative body in charge on the basis of construction public opinion monitoring implementation of the organization:
20.8.1. violation of the requirements of Article 12 of this Law, 13, 14, 15, 16;20.8.2. operations unemployed for three consecutive years specified in the license.
20.9. Each license holder activity reports submitted in charge of construction the state administration in years, according to written construction documents construction specified in Article 33.1.17 of this law.
20.10. Not a license to use the construction of the re-construction design specified in Article 20.2.
Article 21.Registration of citizen, legal entities operating construction business
21.1.Legal entities engaged in construction scoping, geodetic and cartographic services, building and facility design development, construction material manufacturing, construction cost estimation shall submit a document evidencing their compliance of the requirements specified in Article 21.2 of this Law and be registered. Registration can be carried out electronically.
21.2.The Cabinet member in charge of construction issues shall approve the requirements, documents and registration procedures that apply to the citizen and legal entities engaged in the business fields specified in Article 21.1 of this Law as per the categories specified in Article 10 of this Law.
21.3.Legal entities and personnel engaged in a construction business shall be recorded into unified registry and database.
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Article 45.Foreign citizens and legal entities working in the construction industry
45.1.A foreign citizen who has applied for participation in construction business shall have experience in the field and hold a work permit according to laws.
45.2.A foreign legal entity engaged in construction business shall obtain the license specified in Articles 19 and 20 of this Law.
45.3.Except otherwise stated in Mongolian laws and legislation, foreign legal entities shall have a joint venture/collaborate with a competent legal entity of Mongolia specified in this Law to perform construction of buildings and facilities that are funded by state and local budgets or foreign loan and aid.
45.4.A foreign invested legal entity shall attach the certificate of construction license issued by the competent authority of the country to its application for license specified in Articles 19 and 20 of this Law.
45.5.Foreign citizens and legal entities engaged in construction business shall be registered in accordance with Article 21 of this Law. [...]" (Construction Law, Revised, 5 February 2016)
Construction Law, Revised, 5 February 2016
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