Dealing with Construction Permits in
Iceland
Listed below is detailed summary of the procedures, time and costs to build a warehouse —including obtaining necessary licenses and permits, completing required notifications and inspections and obtaining utility connections.
The information appearing on this page was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 183 economies. The most recent round of data collection for the project was completed in June 2011.
-
Building a warehouse
-
Estimated Warehouse Value:
ISK 99,000,000
- City: Reykjavik
| No. |
Procedure |
Time to Complete |
Associated Costs |
| 1 |
Obtain design approval from Reykjavik construction agency
The architectural drawings must be drawn to a scale of 1:100. A meeting of architects convenese every Tuesday to discuss the applications submitted subject to architectural drawing approval. The architects at Reykjavik Construction agency compare their notes, and if the application is complete and follows the guidelines and regulations of the Building Code the approval will be issued in 1-2 weeks.The cost for this procedure is composed of following: ISK 7,700 (used to
be ISK 6,300 in 2007) paid for the application, and ISK 77m3 (ISK 77x3,900m3=ISK 300,300) for the approval of architectural drawings and designs. The approval is valid for 1 year within which BuildCo has to begin construction.
Agency: Reykjavik Construction Agency
|
14 days
|
ISK 308,000
|
| 2 |
Obtain approval of site manager from Reykjavik construction agency
The site manager must be a professional engineer or a master builder. They are generally licensed by the Ministry of Housing. The application for this approval should include an application form, curriculum vitae, education certificate, and the liability insurance payment.
Agency: Reykjavik Construction Agency
|
3 days
|
no charge
|
| 3 |
Pay water connection fees to the Reykjavik power company
Water and electricity connection is administered by Reykjavik Power Company based on a principle of a single window. Its operation and quality management are pursuant to ISO 9000.
Agency: Reykjavik Energy (Orkuveita Reykjavíkur)
|
1 day
|
ISK 253,500
|
| 4 |
Pay phone connection fees to the Iceland Telecommunication company
The fee has been increased in 2008 to ISK 2,990.
Agency: Síminn (Iceland Telecom)
|
1 day
|
ISK 2,990
|
| 5 |
Obtain approval of structural, electrical, and mechanical design drawings from Reykjavik construction board
The company can present these design drawings all at once or separately. The mechanical design drawings include the potable water system, heating and ventilation, and sewerage system.The lowest fee for the approval of electrical drawings of this building is 17.100 Ikr. At this stage when BuildCo receives the approval of the technical aspect of drawings it needs to pay for the inspections to be conducted during construction.
The prepayment of inspections during construction is mandatory and the fee is 7200 Ikr/hr. The estimated time for inspection depending on the size and complicity of the project, estimated on the basis of the experience of last 3 years. This project would be about 24 hours for all inspections. The payment is made at this stage to ensure the inspections come during construction. The approval is valid for 1 year within which BuildCo has to build the construction.
Agency: Reykjavik Construction Agency
|
14 days
|
ISK 189,800
|
| 6 |
Obtain initial setout of building from Reykjavik planning authority
The cost is 36.000 Ikr. Including a tax for the final stake out of the building. For simple buildings, half price is often collected for the first stake out prior to excavation.
Agency: Reykjavik public works, landinformation office, Reykjavík GIS
|
5 days
|
ISK 36,000
|
| 7 |
Receive foundation work inspection from Reykjavik construction agency
At each stage of construction before the work is covered, an inspection must be conducted by the municipality. These inspections must be requested with –a day’s notice, and no stoppage in construction may take place. The request can be made via e-mail. The actual inspection takes 2 hours on average.
Agency: Reykjavik Construction Agency
|
1 day
|
no charge
|
| 8 |
Receive concrete work inspection from Reykjavik construction agency
Agency: Reykjavik Construction Agency
|
1 day
|
no charge
|
| 9 |
Receive steel work for slabs inspection from Reykjavik construction agency
Agency: Reykjavik Construction Agency
|
1 day
|
no charge
|
| 10 |
Receive frame inspection from Reykjavik construction agency
Agency: Reykjavik Construction Agency
|
1 day
|
no charge
|
| 11 |
Receive drainage inspection from Reykjavik construction agency
Agency: Reykjavik Construction Agency
|
1 day
|
no charge
|
| 12 |
Receive structure inspection from Reykjavik construction agency
Agency: Reykjavik Construction Agency
|
1 day
|
no charge
|
| 13 |
Receive timber scaffolding inspection from Reykjavik construction agency
The procedure is carried out by Occupational Safety And Health (OSHA).
Agency: OSHA
|
1 day
|
no charge
|
| 14 |
Receive plumbing inspection from Reykjavik construction agency
Agency: Reykjavik Construction Agency
|
1 day
|
no charge
|
| 15 |
Obtain occupancy permit and request inspection
The Reykjavik construction authority contacts all the other agencies that should inspect the building. The number of inspections depends on the size and purpose of the building. For a small warehouse, only the fire, health, and labor inspections are necessary. The municipality coordinates these inspections.
Agency: Reykjavik Construction Agency
|
21 days
|
ISK 26,600
|
| * 16 |
Receive final inspection from Reykjavik construction agency
The final inspection includes inspections of employee facilities by Icelandic OSHA, inspection of hygienic conditions by the Reykjavik environmental and hygiene agency, and the fire system inspection.
Agency: Reykjavik Construction Agency
|
7 days
|
no charge
|
| 17 |
Obtain water meter and final water connection
Agency: Reykjavik Energy (Orkuveita Reykjavíkur)
|
7 days
|
no charge
|
* Takes place simultaneously with another procedure.