Philippines

Dealing with Construction Permits in

Cebu City - Philippines

Below is a detailed summary of the procedures, time and costs to build a warehouse. This includes 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 subnational project in Philippines. Download this Doing Business report or explore other cities and topics.

  • Estimated cost of construction: PHP 19,500,003
  • City: Cebu 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.
3 days PHP 160 (PHP 30 for the certification + PHP 6 for each additional page (4 pages needed) + PHP 112 IT fee)
* 2 Obtain certified true copy of the tax declaration of real property from the City Assessor's Office (CAO)


The certified true copy of the tax declaration of real property enables the company to identify the property by its index number. The tax clearance serves as proof that there are no arrears in the payment of realty taxes.
1 day PHP 55 (PHP 40 certification + PHP 15 documentary stamp tax)
* 3 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.
2 days PHP 1,250
* 4 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.
2 days PHP 200
5 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.
1 day No cost
6 Notarize the locational clearance application form at the notary


1 day PHP 50
7 Receive inspection for the locational clearance from the CPDO


1 day No cost (fees included in procedure 8)
8 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.
6 days PHP 20,604 (PHP 1,000 + 1/10 of 1% of the total estimated cost of the project in excess of PHP 100,000 for the zoning fee + 1% of the zoning fee for legal and research fee)
9 Apply for 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. Tax declaration;
c. Current real property tax receipt;
d. Building permit application form;
e. 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
f. Locational clearance from the CPDO.
1 day No cost
10 Receive preliminary inspection from OBO


OBO conducts a preliminary inspection onsite to check whether the construction has started or not. There is a penalty if construction has started without the building permit.
1 day No cost
11 Get evaluation of and comments on the architectural plans from the OBO


Upon submitting the required documents for the building permit, the company has to visit different sections to have the plans evaluated and approved.
1 day No cost (fees included in procedure 18)
12 Get evaluation of and comments on the civil/structural plans from the OBO


1 day No cost (fees included in procedure 18)
13 Get evaluation of and comments on the line and grade plans from the OBO


1 day No cost (fees included in procedure 18)
14 Get evaluation of and comments on the sanitary and plumbing plans from the OBO


1 day No cost (fees included in procedure 18)
15 Get evaluation of and comments on the electrical plans


1 day No cost (fees included in procedure 18)
16 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.

One set of plans and specifications submitted by the applicant to the OBO is referred to the City Fire Marshall, who evaluates the plans 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. The City Fire Marshall must submit his recommendations to the OBO within 5 working days from the date of referral.

While the company is getting approval from the City Fire Marshall, the OBO simultaneously processes the building permit application and checks the building plans and specifications.
7 days PHP 19,500 (0.1% of estimated project cost)
17 Obtain the parking compliance from the City Mayor's Office (CMO)


1 day No cost
18 Obtain the building permit from the OBO


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.
30 days PHP 35,123 (first 500 square meters x PHP 23 +
next 100 square meters x PHP 22 +
next 100 square meters x PHP 20.50 +
next 100 square meters x PHP 19.50 +
next 100 square meters x PHP 18 +
next 100 square meters x PHP 17 +
next 301 square meters x PHP 16

for a total of PHP 26,016.
Ancillary fees are estimated at PHP 7 per square meter)
19 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.
1 day No cost (fees included in procedure 16)
20 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.
1 day No cost (fees included in procedure 18)
21 Apply for the Certificate of Occupancy and Certificate of Final Electrical Inspection (CFEI) 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. Duly notarized certificate of completion;
c. Construction logbook;
d. As-built plans and specifications; and
e. Building inspection sheet,

all signed and sealed by the architect or engineer who undertook the full-time inspection and supervision of the construction.

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.
1 day No cost
22 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.
1 day PHP 3,512 (10% of building permit fees)
23 Receive final inspection for the FSIC from the BFP


1 day No cost (fees included in procedure 22)
24 Obtain the FSIC from the BFP


3 days No cost
25 Receive final inspection for the Certificate of Occupancy and CFEI 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.
1 day No cost (fees included in procedure 26)
26 Obtain the Certificate of Occupancy and CFEI 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.
3 days PHP 20,000 (PHP 1,000 per PHP 1,000,000 of the project value)
27 Apply for electricity connection at Visayan Electric Company (VECO)


The company visits VECO to apply for the connection and submit the CFEI and electrical plans. VECO technical staff inspects the warehouse. The cost of the transformers is PHP 118,644 per transformer (three needed). The total project cost is PHP 433,123 and is refunded after one year.
1 day No cost
28 Receive inspection for electricity connection from VECO


1 day No cost
29 Obtain electricity connection from VECO


19 days No cost
* 30 Apply for water connection at Metro Cebu Water District (MCWD)


1 day No cost
* 31 Receive inspection for water connection from MCWD


1 day No cost
* 32 Obtain water connection from MCWD


15 days No cost
* 33 Obtain telephone connection from the telephone company


There are three telephone companies providing landline services in Cebu City. The cost is PHP 1,500 for Philippine Long Distance Co. (PLDT), and PHP 999 for Bayantel. Globelines requires proof of financial capability but does not charge any fee. There is a lock-in period of 12 months for the three providers. The case study assumes that the company will request services from Globelines as this is the option favorable to the company.
5 days PHP 4,950 (installation fee paid during application)
* 34 Apply for the tax declaration of improvement at the 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.
1 day No cost
* 35 Receive inspection from the Appraiser of CAO


1 day No cost
* 36 Obtain the tax declaration of improvement from 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.
1 day No cost
* Takes place simultaneously with another procedure.

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