Dealing with Construction Permits in Ecuador

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

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Building a warehouse

Data as of: January 2009
Estimated Warehouse Value: USD 429,000
City: Quito

Requirements Summary:


  Procedure Time to complete: Cost to complete:
1 Obtain Urban Regulation Report (Informe de Regulación Urbana - IRM) 21 days USD 25
2 Obtain proof of compliance with 1/1000 contribution to Professional Association of Architects 1 day USD 429
3 Request and obtain permit from the Fire Department 5 days USD 200
4 Request approval for the plans 20 days USD 6,435
5 Verify structure plan with Professional Association of Engineers 10 days USD 429
6 Obtain construction guarantee and deposit it afterwards with the Municipality 2 days USD 9
7 Obtain the final building permit 16 days USD 595
8 Request and obtain foundation inspection 1 day no charge
9 Request and obtain structure inspection 1 day no charge
10 Request and obtain telephone connection 20 days USD 77
11 Request potable water and drainage hook-up 1 day no charge
12 Receive water and sewage inspection 1 day no charge
13 Obtain potable water and drainage hook-up 1 day no charge
14 Request electric power service hook-up from Empresa Electrica Quito (EEQ) 1 day no charge
15 Receive inspection by Empresa Electrica Quito (EEQ) 1 day USD 15
16 Obtain electric power service 25 days USD 86
17 Request and obtain final inspection 1 day no charge
18 Obtain habitability permit and guarantee retrieval 20 days no charge
19 Register the building at the Property Registry 7 days USD 100

Requirement Details

Procedure 1.
Obtain Urban Regulation Report (Informe de Regulación Urbana - IRM)
Time to complete:
21 days
Cost to complete:
USD 25
Name of Agency:
Municipality of Quito (Municipio de Quito, Administración Zonal)
Comment:
The Urban Regulation Report (Informe de Regulacion Urbana, IRM) is required for most procedures before the District Municipality, such as purchasing, selling, dividing, and building a property, as well as determining if the site is affected by road construction design.

Valid for 2 years, this report provides the parameters to subdivide or urbanize the following:
- Area available to construct the ground floor.
- Maximum building area.
- Maximum building height permitted.
- Maximum number of dwelling units.
- Building separation distances.
- Permitted and unauthorized land use.
- Basic service availability.
- Manufacturing line (línea de fábrica) reference.

To obtain the report, BuildCo must do the following:
- Purchase the IRM form, whose value is equivalent to 5% of the effective unified basic wage (salario básico unificado vigente), at the respective Subdivision Administration (Administración Zonal).
- Register the property's data and enclose a copy of the property tax payment receipt.
- Submit copies of the citizenship identification and of the updated voting voucher or owner's exemption certificate.
- Enclose a cartographic sheet of the Geographical Military Institute (scale, 1:5,000 or 1:25,000), showing the exact property location and the respective public deeds registered at the Property Registry.
= Enclose a copy of the public writ of the estate (a request signed by the owner to guarantee the payment of water, electricity, or telephone service).
Procedure 2.
Obtain proof of compliance with 1/1000 contribution to Professional Association of Architects
Time to complete:
1 day
Cost to complete:
USD 429
Name of Agency:
Association of Architects of Ecuador (Colegio de Arquitectos del Ecuador –CAE) and/or Association of Civil Engineers of Pichincha (Colegio de Ingenieros Civiles de Pichincha)
Comment:
The proof of payment for the construction contribution is one of the documents required for the approval of the layout plans and the building permit application. The cost is 0.1% of the warehouse value.
Procedure 3.
Request and obtain permit from the Fire Department
Time to complete:
5 days
Cost to complete:
USD 200
Name of Agency:
Fire Department
Comment:
Apart from the aforementioned uses, the fire department report is also required for buildings hosting more than 25 persons or with more than four stories.
Procedure 4.
Request approval for the plans
Time to complete:
20 days
Cost to complete:
USD 6,435
Name of Agency:
Municipality of Quito (Municipio de Quito, Administración Zonal)
Comment:
To request approval for the plans, the following documents must be submitted to the Subdivision Administration (Administración Zonal):
- Plan approval form for buildings, with data record and stamps.
- Metropolitan Regulation Report (Informe de Regulación Metropolitana, IRM), updated.
- Two sets of architectural drawings (scale, 1:100 to 1:50), with an area map, plotted on the first sheet of the project. The drawings must contain the plot area, (COS) percentage; (CUS) percentage; construction area at ground level; total building floor area; and total gross construction area, including housing area, business store and office area, parking area, community area, number of dwelling units, and number of parking lots.
- If the construction is financed with a mortgage loan, three additional sets must be attached.
- Proof of payment of 1 x 1,000 to professional associations
- Proof of payment of property tax (impuesto predial) corresponding to the current year (simple copy of receipt).
- Real estate deed or purchase option agreement duly notarized and registered at the Property Registry
- Copies of the municipal registration and professional registration identification cards.
- Copy of the citizenship card and updated voting voucher or owner’s exemption certificate (Los Chillos deemed unnecessary).
- Certificates granted by the Metropolitan Water and Sewage Utility Company (EMAAP), stating utility service provision (potable water and sewage) (Los Chillos Administration).

The company may request the approval of the draft project (for consultation before final plan approval). The plans also must be approved by the fire department and the professional associations for architects and engineers. The approval of the draft project is valid for 2 years and is informative in nature.

1.5 x 1,000 of total project cost. Cost/sq. m.. = ca. USD 180 (USD 120 - 250).
Procedure 5.
Verify structure plan with Professional Association of Engineers
Time to complete:
10 days
Cost to complete:
USD 429
Name of Agency:
Municipality of Quito (Municipio de Quito, Administración Zonal)
Comment:
Procedure 6.
Obtain construction guarantee and deposit it afterwards with the Municipality
Time to complete:
2 days
Cost to complete:
USD 9
Name of Agency:
Municipality of Quito (Municipio de Quito)
Comment:
Proof of the guarantee deposit is a required document for the building permit application. Once the land plans have been registered for zoning and before their approval, the municipality notifies the applicant the amount to be guaranteed (fondo de garantia). The applicant can deposit the guarantee in cash or certified check or in the form of an insurance policy. The insurance policy is purchased in 2 days from a local insurance company. The fee to purchase the guarantee depends on the value to be guaranteed. After construction is finalized, the municipality will return the guarantee upon inspecting the construction. The guarantee will be returned in full only if the actual construction conforms to the plans approved by the municipality. The transaction fee for the guarantee amounts to 0.05% of the guarantee itself. The guarantee amount is determined by the municipality and depends on the type of construction, the size, the sector, and the relevant zone. For construction under 600 sq. m., the guarantee will range between 1.5% and 3% of the warehouse value. For construction over 600 sq. m., the guarantee with be about 4% of the warehouse value. As a reference, the municipality would assume a warehouse value of USD 200 per square meter.
Procedure 7.
Obtain the final building permit
Time to complete:
16 days
Cost to complete:
USD 595
Name of Agency:
Municipality of Quito/ Empresa Metropolitana de Obras Públicas (EMOP-Q)
Comment:
The documents required to obtain the construction work execution clearance are the following:
- Building permit application form, with stamps and data record.
- Architectural drawing approval report (original or certified copy).
- Set of approved architectural drawings (original or certified copy).
- Sets (two) of structural maps, with the professional signature registration.
- Sets (two) of electrical and hydro sanitary installation plans, with the professional signature registration.
- Proof of payment for building work to professional associations.
- Proof of the guarantee fund deposit.
- Proof of payment for plan and drawing approval.
- Proof of payment to the Metropolitan Water and Sewage Utility Company (EMAAP) for service installation.
- Construction statistical sheet.
- Copy of municipal and professional registration cards for the builder and designer (Los Chillos).
- Copy of the citizenship card and updated voting voucher or owner’s exemption certificate.
- For four stories or more, survey report for soil and subsoil of more than 2.5 mh and structural calculation report.
- Proof of payment received of the corresponding property tax for the current year (La Delicia).

This procedure does not entail any charges. However, the scanner services fee is 20% of the current minimum wage for each sheet, and a form must be purchased with the required stamps. The form fee is USD 0.40, which is the same as the cost of the stamps. These fees are on a per-filing basis, and more than one filing is normally necessary.
Procedure 8.
Request and obtain foundation inspection
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Municipality of Quito/ Empresa Metropolitana de Obras Públicas (EMOP-Q)
Comment:
Procedure 9.
Request and obtain structure inspection
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Municipality of Quito/ Empresa Metropolitana de Obras Públicas (EMOP-Q)
Comment:
Procedure 10.
Request and obtain telephone connection
Time to complete:
20 days
Cost to complete:
USD 77
Name of Agency:
Andinatel
Comment:
Not all areas are covered by a phone network. The telephone connection is not a prerequisite for the occupancy permit. Hence, the occupancy permit can be requested in parallel with the telephone connection.
Procedure 11.
Request potable water and drainage hook-up
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Empresa Metropolitana de Alcantarillado y Agua Potable (EMAAP)
Comment:
The proof of payment for service installation is one of the documents required for the approval of the layout plans and the building permit application.
Procedure 12.
Receive water and sewage inspection
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Empresa Metropolitana de Alcantarillado y Agua Potable (EMAAP)
Comment:
Depending on whether a meter is already available, an inspection may be conducted before BuildCo obtains its water connection. Given that the project considered here is a new construction, it is assumed that BuildCo must obtain the meter with the new electricity connection. Hence, an inspection also takes place to evaluate the cost of new service.
Procedure 13.
Obtain potable water and drainage hook-up
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Empresa Metropolitana de Alcantarillado y Agua Potable (EMAAP)
Comment:
Procedure 14.
Request electric power service hook-up from Empresa Electrica Quito (EEQ)
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Empresa Eléctrica Quito S.A. (EEQ)
Comment:
An electric power service connection takes about 2 weeks.
Procedure 15.
Receive inspection by Empresa Electrica Quito (EEQ)
Time to complete:
1 day
Cost to complete:
USD 15
Name of Agency:
Empresa Eléctrica Quito S.A. (EEQ)
Comment:
The site visit is completed 4–6 days following the application for electrical power service.
Procedure 16.
Obtain electric power service
Time to complete:
25 days
Cost to complete:
USD 86
Name of Agency:
Empresa Eléctrica Quito S.A. (EEQ)
Comment:
The electric power service fee includes the meter and the installation.
Procedure 17.
Request and obtain final inspection
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Municipality of Quito/ Empresa Metropolitana de Obras Públicas (EMOP-Q)
Comment:
Procedure 18.
Obtain habitability permit and guarantee retrieval
Time to complete:
20 days
Cost to complete:
no charge
Name of Agency:
Municipality of Quito (Municipio de Quito)
Comment:
The habitability permit authorizes BuildCo to bring the building into service and enables retrieval of the guarantee fund. To this end, BuildCo must present the following documents at the respective Subdivision Administration (Administración Zonal):
- Inhabitability permit application form, with stamps and data record.
- Approved architectural drawings (one copy).
- Plan and drawing approval report.
- Building permit.
- Original proof of guarantee fund receipt.
- Citizenship card and updated voting voucher or owner exemption certificate (copy).
- For guarantee fund retrieval in cash, an application form must be filed with the General Financial Department (Dirección General Financiera), with the respective stamps.
Procedure 19.
Register the building at the Property Registry
Time to complete:
7 days
Cost to complete:
USD 100
Name of Agency:
Property Registry (Registro de la Propiedad)
Comment:
The following fees apply for the payment of the property registration fee for the qualification and registration of acts implying the incorporation, amendment, title transfer, awards, and extinction of real or personal title over movable or immovable property, as well as for tax assessments or title restrictions, and any similar act.
 
  Initial value Final value Total registration fee
1 01 1.60 1.40
2 1.61 3.00 1.80
3 3.01 4.00 2.25
4 4.01 6.00 2.80
5 6.01 10.00 3.75
6 10.01 14.00 4.50
7 14.01 20.00 5.25
8 20.01 30.00 6.50
9 30.01 40.00 8.20
10 40.01 80.00 11.25
11 80.01 120.00 12.50
12 120.01 200.00 17.25
13 200.01 280.00 22.30
14 280.01 400.00 26.00
15 400.01 600.00 33.70
16 600.01 800.00 37.00
17 800.01 1200.00 44.25
18 1200.01 1600.00 58.90
19 1600.01 2000.00 74.55
20 2000.01 2400.00 80.00
21 2400.01 2800.00 85.00
22 2800.01 3200.00 90.00
23 3200.01 3600.00 95.00
24 3600.01 10000.00 100.00
25 100o/more 100 will be charged for amounts exceeding this value Plus 0.5%


The maximum fee levied by the Property Registry is USD 100 plus VAT.