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Dealing with construction permits: Assessing quality control and safety mechanisms

Author: Doing Business
Publication: Doing Business 2016

Overview

Construction regulations can help protect the public from faulty building practices. But to do so they need to be clear as well as thorough. Where regulations lack clarity, there is a risk of confusion among both builders and authorities, which can lead to unnecessary delays, disputes and uncertainty. In short, quality matters a great deal in the construction permitting system. This year Doing Business continues to measure efficiency in construction permitting while also adding a measure of quality. The building quality control index assesses both quality control and safety mechanisms across 189 economies in six main areas: transparency and quality of building regulations; quality control before, during and after construction; liability and insurance regimes; and professional certifications. The case study presents the summary of the main findings of the new indicator. The findings show that economies with more efficient construction permitting systems have better quality control and safety mechanisms in place.

Main Findings

  • This year Doing Business introduces a new indicator to measure the quality of the construction permitting system. The building quality control index assesses different dimensions of quality in the regime underpinning construction permitting in 189 economies.
  • High-income economies tend to have better quality control and safety mechanisms in place—both in their legal framework and in practice.
  • In 68% of economies the building regulations are available online.
  • Twenty-two economies have no legal requirement for inspections of any type during construction, and 13 economies no legal requirement for a final inspection.
  • In the majority of economies the architect who designed the plans or the construction company will be held liable for any structural defects. But less than half of economies require any party to purchase insurance to cover defects.
  • Economies with a more efficient construction permitting system tend to have better quality control and safety mechanisms in place.