Philippines

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 189 economies. The most recent round of data collection was completed in June 2013. Read the methodology.

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  • Standardized Company

  • Estimated Warehouse Value: PHP 19,500,000
  • City: Quezon city
No. Procedure Time to Complete Associated Costs
1 Obtain certified true copy of the land title from the 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.
Agency: Register of Deeds (RD)
4 days PHP 209
* 2 Obtain lot plan with site map from the geodetic engineer

The company must obtain the lot plan with site map from a geodetic engineer to confirm the location of the land purported to be in the land title. A lot plan with 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.
Agency: Geodetic Engineer
3 days PHP 1,250
* 3 Obtain barangay clearance

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.
Agency: Barangay
1 day PHP 300
4 Apply for the locational clearance at the 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.

The applicant must submit the following requirements:
• Notarized locational clearance application form
• Barangay clearance
• Transfer Certificate of Title (TCT)
• Latest real property tax receipt
• Architectural plan

Agency: City Planning and Development Office (CPDO)
1 day PHP 45
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

The applicant pays the locational clearance fee at the City Treasurer's Office (CTO) and obtains the locational clearance at the CPDO.
Agency: City Planning and Development Office (CPDO)
5 days PHP 2,926
7 Apply and obtain the building permit and ancillary permits at the 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, Brgy. 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
• Photocopy of tax declaration
• Building permit application form
• Five (5) 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

After the building permit application is approved, the building official makes an assessment and issues an order of payment for the company to pay at the CTO. Once the company has paid the building permit fees, it will present the official receipt to the Receiving/Releasing Section of the OBO which will then issue the permit.

Agency: Office of Building Official
14 days PHP 39,018
8 Receive inspection from the BFP during construction

The BFP conducts an inspection during construction to ensure that the plans and fire safety precautions are observed.
Agency: Bureau of Fire Protection (BFP)
1 day no charge
9 Receive inspection from the OBO during construction

During the construction of the warehouse, the OBO conducts an inspection to ensure that the construction follows the approved building plans and design.
Agency: Office of Building Official
1 day no charge
10 Apply for the Fire Safety Inspection Certificate (FSIC) at the BFP

Once construction has been completed, the company 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. The applicant must submit a Fire and Life Safety Assessment Report 2 (which certifies that the construction of the building was in accordance with FALAR 1), prepared by an architect who is duly certified by the BFP to prepare this report.
Agency: Bureau of Fire Protection (BFP)
1 day PHP 3,902
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

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 Philippine Electrical Code.
Agency: Office of Building Official
1 day no charge
* 14 Receive final inspection for the CFEI from the OBO


Agency: Office of Building Official
1 day no charge
* 15 Obtain the CFEI from the OBO


Agency: Office of Building Official
1 day no charge
16 Apply for the Certificate of Occupancy at the OBO

In applying for a Certificate of Occupancy, the applicant must submit the following to the OBO:
• Application for Certificate of Occupancy
• FSIC
• Health certificate
• Duly notarized certificate of completion
• Construction logbook
• As-built plans and specifications
• Building inspection sheet

All documents should be signed and sealed by the architect or engineer who undertook the full-time inspection and supervision of the construction.

Agency: Office of Building Official
1 day no charge
17 Receive final inspection for the Certificate of Occupancy from the OBO

The OBO conducts a final inspection to check the building based on the certificate of completion, construction logbook, building inspection sheets, original and as-built plans and specifications.
Agency: Office of Building Official
1 day no charge
18 Obtain the Certificate of Occupancy from the 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.
Agency: Office of Building Official
18 days PHP 32,000
19 Apply for water and sewage connection at Maynilad Water Services, Inc. (Maynilad) or Manila Water Company, Inc. (Manila Water)

There are two private water providers for Quezon City. Maynilad services the west zone and Manila Water services the east zone. The company visits the water company to request the connection and pays PHP 7,455.00 for Maynilad or PHP 6,855.00 for Manila Water. Inspection takes place within a week and the connection is effected some days after the inspection. The case study assumes that the company will request water from Manila Water as this is the option favorable to the company.
Agency: Maynilad Water Services, Inc. (Maynilad)
1 day no charge
* 20 Receive inspection for water and sewage connection from Maynilad or Manila Water


Agency: Maynilad Water Services, Inc. (Maynilad)
1 day no charge
* 21 Obtain water and sewage connection from Maynilad or Manila Water


Agency: Maynilad Water Services, Inc. (Maynilad)
21 days PHP 6,855
* 22 Obtain telephone connection from the telephone company

There are four telephone companies providing landline services in Quezon City. The cost is PHP 1,500.00 for Philippine Long Distance Co. (PLDT), PHP 749.00 for Bayantel and PHP 2,500.00 for Digitel. Globelines requires proof of financial capability but does not charge any fee. There is a lock-in period of 12 months for PLDT and Globelines, and 30 months for Digitel. Bayantel offers no lock-in period for regular phone line. The case study assumes that the company will request services from Globelines as this is the option favorable to the company.
Agency: Philippine Long Distance Telephone (PLDT)
5 days no charge
* 23 Apply for the tax declaration of improvement at the City Assessor's Office (CAO)

The company 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. The company must submit the floor plan and as-built plan to the CAO.
Agency: City Assessor's Office (CAO)
1 day no charge
* 24 Receive inspection from the Appraiser of CAO


Agency: City Assessor's Office (CAO)
1 day no charge
* 25 Obtain the tax declaration of improvement from the CAO

The tax declaration of improvement is released after an appraiser inspects the property, which can be done on the following day or sometimes even on the same day.
Agency: City Assessor's Office (CAO)
3 days no charge
* Takes place simultaneously with another procedure.

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