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 2014. Read the methodology.

The indicator set on dealing with construction permits will be expanded in Doing Business 2016 to include an index that will measure good practices in construction regulation and assess the quality control and safety mechanisms in place for an economy’s construction permitting system, as well as the quality of the building regulations. This new index will become a component indicator of the ranking on dealing with construction permits. The new data were collected for 170 economies in 2014 and is available under the “Methodology Expansion” tab, below. The data are preliminary and do not have any impact on the Ease of Doing Business 2015 rankings. This data may differ from what will be published in Doing Business 2016.

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  • STANDARDIZED WAREHOUSE

  • Estimated cost of construction: PHP 7,037,832
  • 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)
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.
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:
• Notarized locational clearance application form
• Barangay clearance
• Transfer Certificate of Title (TCT)
• Latest real property tax receipt
• Architectural plan
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.
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, 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
• 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.
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:
• 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.
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.
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.
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 another procedure.
Answer
Building code/regulations
Which requirements to obtain a building permit are clearly specified by the building regulations (including the building code), any regulations dealing with construction permits or any accessible website, brochure or pamphlet? List of required documents to submit; Fees to be paid; Required preapprovals by all relevant agencies
Where are the building regulations (including the building code) or any regulations dealing with construction permits accessible? Available for purchase
Quality control before construction
Which entities are required to verify that the architectural plans/drawings for a private construction are in compliance with existing building regulations? Government agency
Who is part of the committee or team that reviews and approves building permit applications in the relevant permit-issuing agency? Licensed architect; Licensed engineer; A civil servant who is not an architect or engineer
Quality control during construction
What type of mandatory inspections (if any) are required by law to be carried out during construction? Unscheduled inspections
Do legally mandated inspections occur in practice during construction? Mandatory inspections are done in practice.
Quality control after construction
Is there a final inspection required by law to verify that the building was built in accordance with the approved plans and existing building regulations or is a final report / sign-off required by a supervising engineer? Yes
Do legally mandated final inspections occur in practice? Final inspection is done in practice.
Liability/insurance regimes
Which parties (if any) are held liable by law for structural flaws/problems in the building once it is in usage? Architect or engineer; Professional or Agency in charge of the supervision; The construction company
Which parties (if any) are required to obtain an insurance policy to cover possible structural flaws/problems in the building once it is in usage? Legislation is silent on this issue.
Professional certification and controls
What are the qualification requirements for the architect or engineer in charge of verifying that the architectural plans/drawings are in compliance with existing building regulations? University degree in architecture or engineering; Be a registered architect or engineer; Pass a certification exam
What are the qualification requirements for the professional who supervises the construction on the ground? Pass a certification exam; Be a building services engineer

  Please send any comments and inputs on the data above to rru@worldbank.org

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