Dealing with Construction Permits in
Philippines
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:
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)
|
7 days
|
PHP 160
|
| * 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
|
2 days
|
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:
a. Notarized locational clearance application form;
b. Barangay clearance;
c. Transfer Certificate of Title (TCT);
d. Latest real property tax receipt; and
e. Architectural plan.
Agency: City Planning and Development Office (CPDO)
|
1 day
|
PHP 45
|
| 5 |
Notarize the locational clearance application form at the notary
Agency: Notary
|
1 day
|
PHP 50
|
| 6 |
Receive inspection for the locational clearance from the CPDO
Agency: City Planning and Development Office (CPDO)
|
1 day
|
no charge
|
| 7 |
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
|
| * 8 |
Apply and obtain Fire Safety Evaluation Clearance (FSEC) from the local Fire Marshall at the Bureau of Fire Protection (BFP)
The FSEC is a clearance with a fire safety checklist that enumerates the life and fire safety requirements of the Fire Code.
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. The applicant must also submit 3 sets of the Fire and Life Safety Assessment Report (FALAR) 1 (which documents the fire and life safety features of the building) prepared by an architect who is duly certified by the BFP to prepare this report.
Agency: Bureau of Fire Protection (BFP)
|
7 days
|
PHP 19,500
|
| 9 |
Apply and obtain the building permit and ancillary permits at the Office of the Building Official (OBO)
The ancillary permits consist of: (1) the architectural permit, (2) civil/structural permit, (3) electrical permit, (4) mechanical permit, (5) sanitary permit, (6) plumbing permit, and (7) electronics permit.
The applicant must submit the following requirements:
a. Certified true copy of Original Certificate of Title (OCT)/TCT on file with the Registry of Deeds;
b. Photocopy of tax declaration;
c. Building permit application form;
d. 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); and
e. 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
|
12 days
|
PHP 39,018
|
| 10 |
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
|
| 11 |
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
|
| 12 |
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 3,901
|
| 13 |
Receive final inspection for the FSIC from the BFP
Agency: Bureau of Fire Protection (BFP)
|
1 day
|
no charge
|
| 14 |
Obtain the FSIC from the BFP
Agency: Bureau of Fire Protection (BFP)
|
5 days
|
no charge
|
| * 15 |
Apply for health certificate at the City Health Office (CHO)
Agency: City Health Office
|
1 day
|
no charge
|
| * 16 |
Receive inspection for the health certificate from the CHO
Agency: City Health Office
|
1 day
|
no charge
|
| * 17 |
Obtain the health certificate from the CHO
Agency: City Health Office
|
5 days
|
PHP 400
|
| * 18 |
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
|
| * 19 |
Receive final inspection for the CFEI from the OBO
Agency: Office of Building Official
|
1 day
|
no charge
|
| * 20 |
Obtain the CFEI from the OBO
Agency: Office of Building Official
|
1 day
|
no charge
|
| 21 |
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:
a. Application for Certificate of Occupancy;
b. FSIC;
c. Health certificate;
d. Duly notarized certificate of completion;
e. Construction logbook;
f. As-built plans and specifications; and
g. Building inspection sheet,
all 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
|
| 22 |
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
|
| 23 |
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
|
| 24 |
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 for Maynilad or PHP 6,855 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
|
| * 25 |
Receive inspection for water and sewage connection from Maynilad or Manila Water
Agency: Maynilad Water Services, Inc. (Maynilad)
|
1 day
|
no charge
|
| * 26 |
Obtain water and sewage connection from Maynilad or Manila Water
Agency: Maynilad Water Services, Inc. (Maynilad)
|
21 days
|
PHP 6,855
|
| * 27 |
Obtain telephone connection from the telephone company
There are four telephone companies providing landline services in Quezon City. The cost is PHP 1,500 for Philippine Long Distance Co. (PLDT), PHP 749 for Bayantel and PHP 2,500 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
|
| * 28 |
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
|
| * 29 |
Receive inspection from the Appraiser of CAO
The company should request the technical conditions for making the necessary utility connections. At this point, the company also starts negotiations on conditions for the supply of these utilities.
Article 34, paragraph 3, subparagraph 3, of the Building Law Act, states the following: “Depending on the needs, the technical project must include the declarations of suppliers about assuring delivery of the energy, water, heat and gas, and sewage connections; and about the possibility of connecting that building to the water mains, sewage, thermal, gas, energy, and telecommunications networks, and land roads.”
This step is necessary to ensure compliance of the building project with regulations of the Building Code. Some suppliers require payment for a declaration assuring the delivery of electric power and stating the conditions of connection to the network. One of the Warsaw electric power suppliers requires PLN 146.4 (or PLN 292.8, depending on technical conditions) pre-payment, which is counted toward future payment for concluding an agreement with the supplier.
A supplier of electricity has 14 days to ensure delivery of power and indicate the conditions of connection to the network. This time line can be 30 days depending on the technical conditions. In any case, this period is defined by the Ministry of Economy and Labor, which defines the conditions of connecting to electric power networks and of operating and exploiting these networks.
Agency: City Assessor's Office (CAO)
|
1 day
|
no charge
|
| * 30 |
Obtain the tax declaration of improvement from the CAO
BuildCo should request the technical conditions for making the necessary utility connections. At this point, the company also starts negotiations on conditions for the supply of these utilities.
The Warsaw water authority requires payment for defining the conditions of a connection to the water network (the payment may be up to PLN 100). The connection conditions are defined within 14 days of the request date, and the declaration is sent by mail after another 14 days.
Agency: City Assessor's Office (CAO)
|
3 days
|
no charge
|
* Takes place simultaneously with another procedure.