Philippines

Dealing with Construction Permits in

Makati - 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.

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  • Estimated cost of construction: PHP 19,500,009
  • City: Makati
No. Procedure Time to Complete Associated Costs
1 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.
3 days PHP 1,750
* 2 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 300 (PHP 150 per floor)
3 Notarize locational clearance application form at the notary


1 day PHP 50
4 Apply for locational clearance at the Urban Development Department (UDD)


This clearance confirms that the intended land use conforms to the local government's zoning ordinances, wherein a Barangay clearance is required.
1 day No cost
5 Receive inspection for locational clearance from the UDD


1 day No cost (fees included in procedure 6)
6 Obtain locational clearance from the UDD


The applicant pays the locational clearance fee at the City Treasurer's Office (CTO) and obtains the locational clearance at UDD.
2 days PHP 16,458 (PHP 12.5 per square meter + PHP 200 filing fee)
* 7 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.
7 days PHP 19,500 (0.1% of estimated project cost)
8 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. Photocopy of Original Certificate of Title (OCT)/TCT on file with the Registry of Deeds;
b. Photocopy of 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);
f. Locational clearance from the UDD; and
g. FSEC.

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.
6 days PHP 39,018 (according to the National Building Code of the Philippines, the cost of the building permit is PHP 23 per square meter. The computation here is based on PHP 30 per square meter to account for ancillary costs such as electrical, mechanical and plumbing fees)
9 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 7)
10 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 8)
11 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 3,901 (10% of building permit fees)
12 Receive final inspection for the FSIC from the BFP


1 day No cost (fees included in procedure 11)
13 Obtain the FSIC from the BFP


1 day No cost
14 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
15 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
16 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.
5 days PHP 20,400 (PHP 1,000 for first PHP 1,200,000 of the project value; PHP 1,000 for every PHP 1,000,000 in excess thereof; PHP 400 for PHP 150,000 - PHP 400,000 + PHP 1,000 for CFEI)
17 Apply for electricity connection at Manila Electric Company (Meralco)


The electric company is Meralco. The company visits Meralco to request the connection and submit the CFEI and electrical plans. Meralco conducts an inspection of the warehouse and in the following days the technical staff visits the site for the electricity connection.
1 day No cost
18 Receive inspection for electricity connection from Meralco


1 day No cost
19 Obtain electricity connection from Meralco


The electric company is Meralco. The company visits Meralco to request the connection and submit the CFEI and electrical plans. Meralco conducts an inspection of the warehouse and in the following days the technical staff visits the site for the electricity connection.
56 days PHP 564,490 (PHP 35,000 for poles + PHP 334,400 for two 75 kVA transformers + PHP 44,000 for dressings + PHP 6,700 for guying + PHP 144,390 for security deposit)
* 20 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 Makati 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 in a week. The case study assumes that the company will apply for a water connection from Manila Water as this is the option favorable to the company.
1 day No cost
* 21 Receive inspection for water and sewage connection from Maynilad or Manila Water


1 day No cost
* 22 Obtain water and sewage connection from Maynilad or Manila Water


21 days PHP 6,855
* 23 Obtain telephone connection from the telephone company


There are three telephone companies providing landline services in Makati City. These are Philippine Long Distance Co. (PLDT), Globelines, and Digitel. For PLDT, the cost is PHP 1,500 and there is a lock-in period of 12 months for the regular phone line. Globelines requires proof of financial capability but does not charge any fee. There is a lock-in period of 12 months for the regular phone line. For Digitel, the cost is PHP 2,500 and there is a lock-in period of 30 months for the regular phone line. The case study assumes that the company will request services from Globelines as this is the option favorable to the company.
5 days No cost
* 24 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.
1 day No cost
* 25 Receive inspection from the Appraiser of CAO


1 day No cost
* 26 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.
1 day No cost
* Takes place simultaneously with another procedure.

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