Dealing with Construction Permits in Bhutan

The table below summarizes the procedures, time, and costs to build a warehouse in Bhutan.

Export to Excel | Local partners | Methodology

   View all indicator data and topic details for this economy.

Change Selection

Building a warehouse

Data as of: January 2009
Estimated Warehouse Value: BTN 11,200,000
City: Thimphu

Requirements Summary:


  Procedure Time to complete: Cost to complete:
1 Request and obtain official site plan 5 days BTN 100
2 Purchase building construction application form 1 day BTN 600
3 Submit form to architectural section 90 days no charge
4 Obtain building permit and request pre-construction inspection from City Corporation 1 day BTN 86,022
5 Receive pre-construction inspection 1 day no charge
6 Request and obtain power connection 20 days BTN 22,550
*7 Request water connection and inspection 1 day BTN 3,200
*8 Receive inspection of water connections 1 day no charge
*9 Connect to water services 10 days no charge
10 Receive excavation work inspection 1 day no charge
11 Receive foundation work inspection 1 day no charge
12 Receive concrete work inspection 1 day no charge
13 Receive drainage inspection 1 day no charge
14 Receive timber scaffolding inspection 1 day no charge
15 Receive sanitary inspection 1 day no charge
16 Receive fire inspection 1 day no charge
17 Receive structure inspection 1 day no charge
18 Receive inspection of the building surroundings 1 day no charge
19 Convert temporary electricity connection to permanent 1 day no charge
20 Receive electricity inspection 1 day no charge
*21 Connect to sewage services 15 days BTN 3,000
*22 Connect to phone services 2 days BTN 600
23 Notify building controller of building completion 1 day no charge
24 Receive final inspection and obtain occupancy certificate 1 day BTN 6,000
25 Obtain occupancy permit 44 days no charge
* Takes place simultaneously with another procedure.

Requirement Details

Procedure 1.
Request and obtain official site plan
Time to complete:
5 days
Cost to complete:
BTN 100
Name of Agency:
Thimphu City Corporation
Comment:
After a fee is paid, the official site plan is obtained from the survey section of the City Corporation.
Procedure 2.
Purchase building construction application form
Time to complete:
1 day
Cost to complete:
BTN 600
Name of Agency:
Thimphu City Corporation
Comment:
BuildCo must purchase the building construction application form from the revenue section of the City Corporation.

Fee schedule for building construction application:
- Application form: BTN 100
- Legal service fee (if required): BTN 500.
Procedure 3.
Submit form to architectural section
Time to complete:
90 days
Cost to complete:
no charge
Name of Agency:
Thimphu City Corporation (Architecture Section)
Comment:
During stage 1 of the approval, the company must submit a duly completed form to the architectural section of the City Corporation, along with the drawing(s), the ownership certificate, and an official site plan. During stage 2 the architectural section will undergo a planning check with the structural, electrical, sewerage, and water supply sections. Although this is an internal process carried out by the municipality, not the company, BuildCo must follow up to ensure progress. During stage 3, the architectural section submits the proposal to the Chief (Thrompon) of City Corporation with recommendations and findings for final approval. As with stage 2, BuildCo must check progress on this internal municipal process.
Procedure 4.
Obtain building permit and request pre-construction inspection from City Corporation
Time to complete:
1 day
Cost to complete:
BTN 86,022
Name of Agency:
Thimphu City Corporation
Comment:
BuildCo must collect its building permit or request to receive it by post. A preconstruction site inspection must be requested in writing.

Fee schedule for preconstruction inspection

- Amenities fee:
-- Residential and institutional building: BTN 30 per sq. m.
-- Commercial and industrial building: BTN 50 per sq. m..
- Scrutiny fee: BTN 3,000 or BTN 16.14 per sq. m. (the greater of).

On starting construction, the company notifies the City Corporation in writing.
Procedure 5.
Receive pre-construction inspection
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Thimphu City Corporation (Building Section)
Comment:
On BuildCo’s request to the City Corporation’s building section, the building inspector conducts a site inspection. Thereafter, routine inspections occur every 3 weeks. If the work is not conducted according to plan, the City Corporation issues a notice to rectify the process. If the company does not comply with the first notice, the utility company disconnects service. If the company does not comply with the third notice, the structure will be demolished (before a building inspector, engineer, architect, surveyor, and police personnel).
Procedure 6.
Request and obtain power connection
Time to complete:
20 days
Cost to complete:
BTN 22,550
Name of Agency:
Bhutan Power Corporation Limited
Comment:
An application must be submitted to the Revenue Section of the Bhutan Power Corporation, requesting a power connection. In 3 days, the company must render certain documents: test report of internal wiring, land ownership certificate, and design and architect clearance from the City Corporation. In another 2 weeks, the utility provides meter and power connection.
Procedure 7.
Request water connection and inspection
Time to complete:
1 day
Cost to complete:
BTN 3,200
Name of Agency:
Thimphu City Corporation
Comment:
To obtain a water connection, BuildCo must submit an application to the building section of the City Corporation and pay a connection fee of BTN 3,200 for a 3/2'' pipe to the Revenue Section of the water company. All connections must be pre-verifed to check whether they comply with water and sanitation rules.
Procedure 8.
Receive inspection of water connections
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Thimphu City Corporation (Building Section)
Comment:
All connections must be pre-verified to check whether they comply with water and sanitation rules. The wait time is about 7–9 days.
Procedure 9.
Connect to water services
Time to complete:
10 days
Cost to complete:
no charge
Name of Agency:
Thimphu City Corporation
Comment:
Procedure 10.
Receive excavation work inspection
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Thimphu City Corporation
Comment:
Excavation work is inspected about 3 weeks after the previous inspection. Thus, Buildco does not have to request an inspection. Moreover, BuildCo does not need to stop work during inspection. However, it must provide the inspector with transportation to the site.
Procedure 11.
Receive foundation work inspection
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Thimphu City Corporation
Comment:
Foundation work is inspected about 3 weeks after the previous inspection. Thus, BuildCo does not have to request an inspection. Moreover, BuildCo does not need to stop work during the inspection. However, it must provide the inspector with transportation to the site.
Procedure 12.
Receive concrete work inspection
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Thimphu City Corporation
Comment:
Concrete work is inspected about 3 weeks after the previous inspection. Thus, BuildCo does not have to request an inspection. Moreover, BuildCo does not need to stop work during the inspection. However, it must provide the inspector with transportation to the site.
Procedure 13.
Receive drainage inspection
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Thimphu City Corporation
Comment:
Drainage work is inspected about 3 weeks after the previous inspection. Thus, BuildCo does not have to request an inspection. Moreover, BuildCo Company does not need to stop work during the inspection. However, it must provide the inspector with transportation to the site.
Procedure 14.
Receive timber scaffolding inspection
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Thimphu City Corporation
Comment:
Timber scaffolding is inspected about 3 weeks after the previous inspection. Thus, BuildCo does not have to request an inspection. Moreover, BuildCo does not need to stop work during the inspection. However, it must provide the inspector with transportation to the site.
Procedure 15.
Receive sanitary inspection
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Thimphu City Corporation
Comment:
Sanitary conditions are inspected about 3 weeks after the previous inspection.
Procedure 16.
Receive fire inspection
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Thimphu City Corporation
Comment:
Fire conditions are inspected about 3 weeks after the previous inspection. Thus, BuildCo does not have to request an inspection. Moreover, BuildCo does not need to stop work during the inspection. However, it must provide the inspector with transportation to the site.
Procedure 17.
Receive structure inspection
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Thimphu City Corporation
Comment:
Procedure 18.
Receive inspection of the building surroundings
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Thimphu City Corporation
Comment:
Procedure 19.
Convert temporary electricity connection to permanent
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Thimphu City Corporation
Comment:
To obtain a permanent electrical connection, when the final inspection is completed, BuildCo must obtain a clearance letter from the City Corporation along with the test report of internal wiring, the land ownership certificate, and the design and architect clearance. The connection can be obtained in a day.
Procedure 20.
Receive electricity inspection
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Bhutan Power Corporation Limited
Comment:
To receive electrical inspection, the power supply company usually verifies the site to check the capacity of the existing load to find out if an additional load can be provided.
Procedure 21.
Connect to sewage services
Time to complete:
15 days
Cost to complete:
BTN 3,000
Name of Agency:
Thimphu City Corporation (Sewerage Section)
Comment:
To obtain sewage services, BuildCo submits an application to the sewerage section of the City Corporation with a copy of the plan and a connection fee of BTN 3,000. The connection is made in about 2 weeks.
Procedure 22.
Connect to phone services
Time to complete:
2 days
Cost to complete:
BTN 600
Name of Agency:
Bhutan Telecom Limited
Comment:
To obtain a phone line, BuildCo submits the application form duly filled and signed. A feasibility study is conducted by the service section of Bhutan Telecom. If feasible, BuildCo pays connection charges.
Procedure 23.
Notify building controller of building completion
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Thimphu City Corporation (Building Section)
Comment:
A written confirmation, stating that construction is completed, is issued to the building controller.
Procedure 24.
Receive final inspection and obtain occupancy certificate
Time to complete:
1 day
Cost to complete:
BTN 6,000
Name of Agency:
Thimphu City Corporation, Environmental Commission, and Bhutan Telecom Limited
Comment:
When the construction (including utilities connections) is completed, BuildCo must notify the City Corporation. Subsequently, the site will be inspected by a team (architect, engineer, surveyor, the Corporation’s building inspector, and representatives of electrical, plumbing, and sanitation agencies). The environmental commission and the telephone company are also informed and asked to join the team, if necessary. If the team deems the construction completed to agreed standard and plans, it recommends the issuance of an occupancy certificate. Otherwise, they ask BuildCo to remedy the deficiencies.
Procedure 25.
Obtain occupancy permit
Time to complete:
44 days
Cost to complete:
no charge
Name of Agency:
Thimphu City Corporation
Comment: