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Dealing with Construction Permits in

Philippines

Below is a detailed summary of the procedures, time and costs to build a warehouse in Philippines. This includes obtaining necessary licenses and permits, completing required notifications and inspections and obtaining utility connections.

This information 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 190 economies. The most recent round of data collection was completed in June 2016. Read the methodology.

Compare Philippines to 189 other economies.

  • Measure of efficiency
    No. Procedure Time to Complete Associated Costs
    1

    Obtain certified true copy of the land title from the Register of Deeds (RD)

    Agency: Register of Deeds (RD)

    The certified true copy of the land title serves as proof of ownership of the land on which the warehouse is to be built.
    4 days PHP 209
    * 2

    Obtain lot plan with site map from the geodetic engineer

    Agency: Geodetic Engineer

    BuildCo must obtain the lot plan with a site map from a geodetic engineer to confirm the location of the land purported to be in the land title. The lot plan with a site map is signed, sealed, and prepared after a meticulous geodetic survey, or at least after an analysis has been conducted of the lot technical description appearing on the title.
    3 days PHP 1,250
    * 3

    Obtain barangay clearance

    Agency: Barangay

    The barangay clearance is generally a requirement for obtaining the locational clearance. The costs for barangay clearances vary as barangays have the discretion to impose their own fees for as long as such fees are reasonable and within the limits imposed by the Local Government Code and city ordinances.

    The following documents must be submitted:

    1. Transfer certificate of title
    2. Blueprint copy of the building plans
    3. Authorization from the company
    4. Photocopy of IDs of authorized representative
    5. Homeowner’s endorsement (if applies)
    1 day PHP 500
    4

    Apply for the locational clearance at the City Planning and Development Office (CPDO)

    Agency: City Planning and Development Office (CPDO)

    The locational clearance is required to ensure that the construction conforms to the city’s Comprehensive Land Use Plan and zoning ordinances.

    BuildCo must submit the following documents, in addition to the application form:

    a. Certified true copy of the transfer certificate of title (TCT)
    b. Real estate tax receipt and bill (current year)
    c. Lease contract/ward notice, dead of sale, memorandum of agreement or joint venture agreement (if applicable)
    d. Authority to sign (corporate secretary’s affidavit)
    e. Affidavit of consent to construct / special power of attorney
    f. Barangay clearance
    g. Location plan
    h. Architectural plans (2 sets, signed and sealed)
    i. Site Development Plan showing parking layout
    j. Long folder

    1 day no charge
    5

    Receive inspection for the locational clearance from the CPDO

    Agency: City Planning and Development Office (CPDO)

    1 day no charge
    6

    Obtain the locational clearance from the CPDO

    Agency: City Planning and Development Office (CPDO)

    BuildCo pays the locational clearance fee at the City Treasurer's Office (CTO) and obtains the locational clearance at the CPDO.
    5 days PHP 1,996
    7

    Apply and obtain fire safety evaluation clearance (FSEC) from the local Fire Marshall at the Bureau of Fire Protection (BFP)

    Agency: Quezon City Fire Marshall - Bureau of Fire Protection (BFP)

    The City Fire Marshall evaluates one set of plans and specifications submitted by the applicant to ensure that they conform to the fire safety and control requirements of the Fire Code. Three sets of the architectural plans must be stamped and approved by the Quezon City Fire Marshall.

    The following documents must be submitted:

    1. Building Plans (5 sets)
    2. Bill of Materials
    3. Locational Clearance
    7 days PHP 11,055
    8

    Apply and obtain the building permit and ancillary permits at the Office of the Building Official (OBO)

    Agency: Office of the Building Official (OBO)

    The ancillary permits consist of:
    • The architectural permit
    • Civil/structural permit
    • Electrical permit
    • Mechanical permit
    • Sanitary permit
    • Plumbing permit
    • Electronics permit
    •Fire Safety Clearance, Barangay Clearance, bill of materials, ECC, PTR & PRC of professionals

    The applicant must submit the following requirements:
    • Certified true copy of Original Certificate of Title (OCT)/TCT on file with the Registry of Deeds
    • Building permit application form
    • 3 sets of survey plans, design plans, specifications and other related documents (i.e., architectural documents, civil/structural documents, electrical documents, mechanical documents, sanitary documents, plumbing documents, electronics documents, geodetic documents, and clearances from other agencies)
    • Locational clearance from the CPDO

    If the sets of documents are complete, an acknowledgement/follow-up slip (AFS) is issued to the applicant. 10 workings after, the applicant will receive a order of payment (OP) is obtained from the Releasing Section of the DBO. Payment is made at the cashier of the Quezon City Treasurer’s Office. The official receipt (O.R.) of the permit fees is then submitted to the Releasing Section of DBO. The building permit will then be issued 5 working after submitting the proof of payment.

    Based on Articles 26 and 27 of the Revenue Code, the fees are as follows:
    - Building permit fees: PHP 37,038.5
    - Electrical permit: PHP 2,800.6
    - Plumbing permit: PHP 1,542
    - Excavation/sanitary permit: PHP 1,662
    21 days PHP 43,043
    9

    Receive inspection from the BFP during construction

    Agency: Bureau of Fire Protection (BFP)

    The BFP conducts an inspection during construction to ensure that the plans and fire safety precautions are observed.
    1 day no charge
    10

    Apply for the fire safety inspection certificate (FSIC) at the BFP

    Agency: Bureau of Fire Protection (BFP)

    Once construction has been completed, BuildCo requests the BFP to inspect the site to certify that the required fire safety construction, fire protective and/or warning systems are properly installed and in good working condition.
    1 day PHP 4,304
    11

    Receive final inspection for the FSIC from the BFP

    Agency: Bureau of Fire Protection (BFP)

    1 day no charge
    12

    Obtain the FSIC from the BFP

    Agency: Bureau of Fire Protection (BFP)

    5 days no charge
    * 13

    Apply for the certificate of final electrical inspection (CFEI) at the OBO

    Agency: Office of the Building Official (OBO)

    The CFEI certifies that a final inspection of the electrical installation has been conducted and that such installation has been completed in accordance with the approved plans and specifications on file with the OBO and the provisions of the Philippines Electrical Code.
    1 day no charge
    14

    Receive final inspection for the CFEI from the OBO

    Agency: Office of the Building Official (OBO)

    1 day no charge
    15

    Obtain the CFEI from the OBO

    Agency: Office of the Building Official (OBO)

    3 days no charge
    16

    Apply for the certificate of occupancy at the OBO

    Agency: Office of the Building Official (OBO)

    In order to apply for a certificate of occupancy, BuildCo must submit the following to the OBO:

    A. Clearances/Certificates/Legal Documents

    1. Fire Safety Inspection Certificate (original + 2 photocopies)
    2. Locational Clearance (3 photocopies)
    3. Approved Building Permit (3 photocopies, present original if it has no bar code)
    4. Approved Sanitary Permit (3 photocopies)
    5. Certificate of Electrical Inspection (CEI) or Approved Electrical Permit (3 copies) w/ CEI Application Forms (2 copies)
    6. Approved Mechanical Permit (3 photocopies)
    7. Corporate Secretary's Certification of Board Resolution Authorizing Signatory (if Corporation/notarized original copy + 2 photocopies)

    Technical Documents (form must be duly accomplished, wet signed & dry sealed by the professional and signed by the owner/s)

    1. Certificate of Completion (for the Structure/2 copies wet signed and dry sealed)
    2. Certificate of Completion of Mechanical & Request for Inspection (especially if under Green Building Ordinance / 2 copies, wet signed & dry sealed)
    3. Two (2) photocopies each of valid PRC IDs & current PTRs with seal and specimen signatures of the professional in blue ink.

    Supporting Document/s (signed and sealed by professionals)

    1. Construction Logbook

    BuildCo must also present the Tax Declaration to the OBO as a condition for the release of the occupancy permit.

    All documents should be signed and sealed by the architect or engineer who undertook the full-time inspection and supervision of the construction.
    1 day no charge
    17

    Receive final inspection for the certificate of occupancy from the OBO

    Agency: Office of the Building Official (OBO)

    The OBO conducts a final inspection to check the building based on the certificate of completion, construction logbook, building inspection sheets, and original and as-built plans and specifications.
    1 day no charge
    18

    Obtain the certificate of occupancy from the OBO

    Agency: Office of the Building Official (OBO)

    After the OBO has processed the application and conducted the inspection, it then issues an assessment and order of payment. The OBO issues the certificate of occupancy after the applicant has paid the corresponding fees.
    18 days PHP 17,688
    19

    Apply for water and sewage connection

    Agency: Manila Water

    There are two private water providers for Quezon City. Maynilad services the west zone and Manila Water services the east zone. An inspection takes place within a week and the connection is completed some days after the inspection. The case study assumes that BuildCo will request water from Manila Water as this is the most favorable option.

    The required documents are:

    1. Proof of Ownership
    2. Barangay Clearance
    3. Company TIN
    4. Valid ID
    5. Excavation permit (If advised by the implementing Manila Water business center)
    1 day no charge
    20

    Receive inspection for water and sewage connection

    Agency: Manila Water

    1 day no charge
    21

    Obtain water and sewage connection

    Agency: Manila Water

    21 days PHP 6,855
    * 22

    Apply for the tax declaration of improvement at the City Assessor's Office (CAO)

    Agency: City Assessor's Office (CAO)

    BuildCo must update its official records to include the newly built warehouse for tax purposes. The OBO furnishes the CAO with a copy of the building plan and certificate of occupancy to notify them of the new building construction. BuildCo must submit the floor plan and as-built plan to the CAO.

    Ordinance No. 2361, series of 2014 entitled: "An Ordinance Requiring All Persons Acquiring Real Property in Quezon City or Making Improvements Thereon to Declare and File a Sworn Statement to the Office of the City Assessor for Real Property Taxation Purposes Such Property Within Sixty (60) Days After Its Acquisition or Upon Completion/Occupancy or Installation of Machineries Whichever Comes First and Imposing Penalties for Violation Thereof" was adopted on 23 December 2014. According to the legislation, the filing of the sworn statement declaring the true value of the property must be done within 60 days after: (a) the date of the final deed of sale, contract or other deed of conveyance; or (b) the date of completion or occupancy of the newly constructed building, house or improvements; or (c) the date of completion or occupancy of any expansion, renovation, or additional structures or improvements; or (d) the date of installation of machinery. Any property owner who fails to comply with the new ordinance will be penalized with a fine of PHP 2,000.00.
    1 day no charge
    23

    Receive inspection from the appraiser of CAO

    Agency: City Assessor's Office (CAO)

    1 day no charge
    24

    Obtain the tax declaration of improvement from the CAO

    Agency: City Assessor's Office (CAO)

    The tax declaration of improvement is released after an appraiser inspects the property.
    3 days no charge

    * Takes place simultaneously with previous procedure.

  • Measure of quality
    Answer Score
    Building quality control index (0-15) 12.0
    Quality of building regulations index (0-2) 2.0
    How accessible are building laws and regulations in your economy? (0-1) Available online; Free of charge. 1.0
    Which requirements for obtaining a building permit are clearly specified in the building regulations or on any accessible website, brochure or pamphlet? (0-1) List of required documents; Fees to be paid; Required preapprovals. 1.0
    Quality control before construction index (0-1) 1.0
    Which third-party entities are required by law to verify that the building plans are in compliance with existing building regulations? (0-1) Licensed architect; Licensed engineer. 1.0
    Quality control during construction index (0-3) 2.0
    What types of inspections (if any) are required by law to be carried out during construction? (0-2) Inspections by in-house engineer; Inspections at various phases. 1.0
    Do legally mandated inspections occur in practice during construction? (0-1) Mandatory inspections are always done in practice. 1.0
    Quality control after construction index (0-3) 3.0
    Is there a final inspection required by law to verify that the building was built in accordance with the approved plans and regulations? (0-2) Yes, final inspection is done by government agency; Yes, in-house engineer submits report for final inspection. 2.0
    Do legally mandated final inspections occur in practice? (0-1) Final inspection always occurs in practice. 1.0
    Liability and insurance regimes index (0-2) 1.0
    Which parties (if any) are held liable by law for structural flaws or problems in the building once it is in use (Latent Defect Liability or Decennial Liability)? (0-1)  Architect or engineer; Professional in charge of the supervision; Construction company; Owner or investor. 1.0
    Which parties (if any) are required by law to obtain an insurance policy to cover possible structural flaws or problems in the building once it is in use (Latent Defect Liability Insurance or Decennial Insurance)? (0-1) No party is required by law to obtain insurance . 0.0
    Professional certifications index (0-4) 3.0
    What are the qualification requirements for the professional responsible for verifying that the architectural plans or drawings are in compliance with existing building regulations? (0-2) Minimum number of years of experience; University degree in architecture or engineering; Being a registered architect or engineer; Passing a certification exam. 2.0
    What are the qualification requirements for the professional who supervises the construction on the ground? (0-2) University degree in engineering, construction or construction management; Being a registered architect or engineer; Passing a certification exam. 1.0