Dealing with Construction Permits in Dominican Republic

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

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Building a warehouse

Data as of: January 2009
Estimated Warehouse Value: DOP 13,250,000
City: Santo Domingo

Requirements Summary:


  Procedure Time to complete: Cost to complete:
1 Obtain a certificate to use the land and possibly, one of no objection ("certificación de no objeción, certificación de uso de suelo") 7 days DOP 1,080
2 Obtain approval of project design drawings by the Municipal Council, and of the construction license by the Ministry of Public Works and Communications 141 days DOP 97,545
*3 Receive inspection by the Municipal Council (Departamento de Planeamiento Urbano) 1 day DOP 500
4 Receive inspection by the Ministry of Public Works and Communications 1 day no charge
5 Pay license fees and taxes associated with the construction license and obtain proof of payment 1 day DOP 20,484
6 Obtain recibo de entrada from Ministry of Public Works and Communications 10 days no charge
7 Receive an inspection before the lintel (zapata) of the project is made 1 day DOP 232
8 Receive an inspection before the space between galleries (entrepiso) is completed 1 day DOP 232
9 Receive an inspection before the roof of the project is completed 1 day DOP 232
10 Request water and sewage connection 1 day no charge
11 Receive on-site inspection for water and sewage connection 1 day no charge
12 Receive water and sewage connection 45 days DOP 22,000
*13 Request electric power connection 1 day no charge
14 Receive on-site inspection for electric power connection 1 day no charge
15 Obtain electric power connection 30 days DOP 55,000
*16 Receive on-site inspection and connection to telephone 12 days DOP 4,000
17 Notify the Ministry of Public Works and Communications of the building completion, and obtain final approval (inspection) 6 days DOP 1,160
* Takes place simultaneously with another procedure.

Requirement Details

Procedure 1.
Obtain a certificate to use the land and possibly, one of no objection ("certificación de no objeción, certificación de uso de suelo")
Time to complete:
7 days
Cost to complete:
DOP 1,080
Name of Agency:
Municipal Council (Departamento de Planeamiento Urbano)
Comment:
The land-use certificate confers the right to build on the plot, but it does not authorize construction. The certificate ensures that the project conforms to zoning regulations. It is a prerequisite for other procedures. The request for this permit may include a request for the certification of "no objection." The request must be accompanied by several documents related to the land, including (a) a copy (simple, unnotarized) of the real property deed for the plot (does not have to be recently obtained; (b) a cadastral plan; (c) a map of the project’s location; and (d) a first draft of the project design drawings.

Should the no-objection certification be requested along with the permit for use of land, the cost involved in such procedure is DOP 1,080. If the land-use permit is requested separately from the no-objection certification, the fee is DOP 530. If requested separately from the land-use permit, the no-objection certification fee is DOP 550. In both cases, the requests must be accompanied by the inspection request.
Procedure 2.
Obtain approval of project design drawings by the Municipal Council, and of the construction license by the Ministry of Public Works and Communications
Time to complete:
141 days
Cost to complete:
DOP 97,545
Name of Agency:
Municipal Council (Departamento de Planeamiento Urbano del Ayuntamiento de la Jurisdicción correspondiente), Ministry of Public Works and Communications (Departamento de Tramitación de Planos de la Secretaría de Estado de Obras Públicas)
Comment:
The request for approval of the project design drawings must be accompanied by several documents, including the property deed, the cadastral plan, and project design drawings, certified by an architect or engineer registered at the Dominican College of Engineers and Architects (CODIA) by the corresponding Municipal Council. BuildCo must request an inspection upon filing the project drawings. Doing so is a prerequisite for other procedures. If the certification of no objection to the project construction is not requested along with the land use permit, it must be requested along with this procedure.

Once the request is approved by the Municipal Council (usually after 14 days), the municipality forwards the request to the Ministry of Public Works and Communications. The ministry then grants a construction license for the project (usually in another 14 days). The license is granted to the project itself and not to BuildCo. During this process, BuildCo must follow up with both agencies to ensure license processing. The construction must be initiated within 6 months from the date of issuance of the license. The license expires if construction work has not begun within 6 months.

According to Resolution # 5, 2004 of the National District Office (Ayuntamiento del Distrito Nacional de Santo Domingo) the official cost for the construction of a warehouse is DOP 75 per square meter. For a warehouse of 1300.6 square meters the total cost will be DOP 97,545.
Procedure 3.
Receive inspection by the Municipal Council (Departamento de Planeamiento Urbano)
Time to complete:
1 day
Cost to complete:
DOP 500
Name of Agency:
Municipal Council (Departamento de Planeamiento Urbano)
Comment:
The inspection is a prerequisite for the Municipal Council’s project design approval and is undertaken by the municipal authorities. According to Resolution # 5, 2004 of the National District Office (Ayuntamiento del Distrito Nacional de Santo Domingo) the official cost for this inspection is DOP 500.
Procedure 4.
Receive inspection by the Ministry of Public Works and Communications
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Ministry of Public Works and Communications (Inspectorate)
Comment:
An inspector from the Inspection Department of the Ministry of Public Works (Departamento de Inspección de la Secretaría de Estado de Obras Públicas) inspects the site to determine the project’s magnitude and taxes and license fees.
Procedure 5.
Pay license fees and taxes associated with the construction license and obtain proof of payment
Time to complete:
1 day
Cost to complete:
DOP 20,484
Name of Agency:
Ministry of Public Works and Communication (Dirección de Edificación de la Secretaría de Estado de Obras Públicas).
Comment:
Fees are paid once the license has been approved and the inspector has valued the project. The formula used by the Ministry of Public Works and Communications to determine construction fees is DOP 2,800 per square meter (1,300 sq. m. x DOP 2,800 = DOP 3,640,000). Thus, the applicable administrative fees (based on a project value of DOP 3,640,000) for this procedure are as follows:
- Internal taxes: DOP 464.
- Construction permit, equivalent to 2.5 X 1,000 of the construction cost: DOP 9,100.
- Fee for the Dominican College of Engineers and Architects (CODIA), equivalent to 2 x 1,000 of the construction cost: DOP 7,280.

The total cost to complete this process is DOP 20,484.
Procedure 6.
Obtain recibo de entrada from Ministry of Public Works and Communications
Time to complete:
10 days
Cost to complete:
no charge
Name of Agency:
Ministry of Public Works and Communications
Comment:
The following documents are filed before the Ministry of Public Works and Communications:
- Deed of real estate property.
- Cadastral plan.
- No objection certification, issued by the municipal authorities (see Procedure 1).
- Form F-3 DGPU, provided by the municipal authorities.
- Evidence of payment of the taxes for the construction permit.
- Plans, duly certified by the corresponding municipal authorities.
- Plans, duly approved by the Directorate of Terrestrial Transit (Direccion General de Transito Terrrestre).
- Structural calculations.
- Permit for the use of land.
Procedure 7.
Receive an inspection before the lintel (zapata) of the project is made
Time to complete:
1 day
Cost to complete:
DOP 232
Name of Agency:
Ministry of Public Works and Communications
Comment:
It is unnecessary to interrupt construction, either during construction inspections or between the inspection request date and the actual inspection.
Procedure 8.
Receive an inspection before the space between galleries (entrepiso) is completed
Time to complete:
1 day
Cost to complete:
DOP 232
Name of Agency:
Ministry of Public Works and Communications
Comment:
Procedure 9.
Receive an inspection before the roof of the project is completed
Time to complete:
1 day
Cost to complete:
DOP 232
Name of Agency:
Ministry of Public Works and Communications
Comment:
The inspection is carried out by an inspector from the Inspection Department of the Ministry of Public Works and Communications (Departamento de Inspeccion de la Secretaria de Estado de Obras Publicas y Comunicaciones).
Procedure 10.
Request water and sewage connection
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Corporation of Aqueduct and Sewage System of Santo Domingo (CAASD)
Comment:
Procedure 11.
Receive on-site inspection for water and sewage connection
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Corporation of Aqueduct and Sewage System of Santo Domingo (CAASD)
Comment:
Procedure 12.
Receive water and sewage connection
Time to complete:
45 days
Cost to complete:
DOP 22,000
Name of Agency:
Corporation of Aqueduct and Sewage System of Santo Domingo (CAASD)
Comment:
A contract must be executed with the Corporation of Aqueducts and Sewage System of Santo Domingo.
Procedure 13.
Request electric power connection
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Corporation of Governmental Electrical Entities (CDEEE)
Comment:
Procedure 14.
Receive on-site inspection for electric power connection
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Corporation of Governmental Electrical Entities (CDEEE)
Comment:
Procedure 15.
Obtain electric power connection
Time to complete:
30 days
Cost to complete:
DOP 55,000
Name of Agency:
Corporation of Aqueduct and Sewage System of Santo Domingo (CAASD)
Comment:
To obtain an electric power connection, BuildCo must execute a contract with the Corporation of Governmental Electrical Entities. This procedure is carried out in the final phase of construction and may be undertaken simultaneously with the procedure for requesting a power connection, depending on the phase in which water connection is requested. The power connection does not require a license and constitutes a simple service to be retained. BuildCo must deposit DOP 50,000; this amount is almost never refunded. BuildCo must also pay a DOP 5,000 connection fee.
Procedure 16.
Receive on-site inspection and connection to telephone
Time to complete:
12 days
Cost to complete:
DOP 4,000
Name of Agency:
Compañia Dominicana de Telefonos (CODETEL)
Comment:
Procedure 17.
Notify the Ministry of Public Works and Communications of the building completion, and obtain final approval (inspection)
Time to complete:
6 days
Cost to complete:
DOP 1,160
Name of Agency:
Ministry of Public Works and Communication (Dirección de Edificación de la Secretaría de Estado de Obras Públicas).
Comment:
Once notified of construction completion, the Ministry of Public Works undertakes a final on-site inspection. Usually, the inspectors visit the site in about a week or so. To obtain final inspection, BuildCo must pay internal taxes of DOP 1,160 (five times the tax of DOP 232). This inspection verifies if the transit regulations have been fulfilled and examines the roof’s impermeability, the sanitary installations, the electrical installations, and the door, floor, and window installations.