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.

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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.

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