The building permit had not lapsed due to slow progress in the construction work

A homebuilder in Sande, Vestfold, was granted a permit to construct a residence in 2001. In 2014, the municipality claimed that the permit had lapsed under section 96 of the 1985 Planning and Building Act, as only groundwork had been carried out on the property and construction had been halted. The municipality issued an order to restore the site to its original condition. When the builder failed to comply, the municipality imposed a coercive fine. The builder did not pay the fine. When the municipality sought to enforce it, he brought an action challenging its validity. Before the courts, the key question was whether the progress made on the construction was sufficient to prevent the permit from lapsing. If so, the municipality’s order and the fine would be invalid.

A unanimous Supreme Court found - contrary to the Court of Appeal - that the law does not require the construction to be completed within a reasonable time for the permit to remain valid. A majority of three justices found that, to avoid the work being considered discontinued, it is sufficient that work carried out within a two-year period makes a genuine contribution to the progress and completion of the project. Insignificant work must be disregarded. The builder met this requirement, and the permit had therefore not lapsed. Consequently, the restoration order and the coercive fine were invalid, and enforcement was halted.

A minority of two justices interpreted the law as imposing somewhat stricter requirements for progress, such that any work of significance must be carried out within a two-year period. Under this interpretation, the permit had lapsed.

The judgment provides guidance on the requirements for progress in construction projects.

Read the judgment from the Supreme Court (Norwegian only) (PDF)

Area of law: Planning and building law. Section 96 of the 1985 Planning and Building Act. Section 21-9 of the 2008 Planning and Building Act. 

Key paragraphs: 51 to 56, 64

Justices: Webster, Østensen Berglund, Sæther, Stenvik, Lund