Dealing with Construction Permits in
United Kingdom
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.
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Building a warehouse
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Estimated Warehouse Value:
GBP 929,000
- City: London
| No. |
Procedure |
Time to Complete |
Associated Costs |
| 1 |
Hire an Approved Inspector
BuildCo enters into contract with an Approved Inspector. Approved Inspectors (AI) are companies or individuals authorized under the Building Act 1984 to carry out building control work in England and Wales. AI will take on responsibility for plan checking and inspection of the building work. Once the contract is signed and terms of reference are outlined, the builder and the approved inspector jointly notify the local authority of their intention to build, what is also called an initial notice. Once this notice has been accepted by the local authority the responsibility for plan checking and site inspection will be formally placed on the AI.
An Approved Inspector will:
- advise BuildCo on how the Building Regulations apply to its work (to a degree)
- check plans for compliance with building regulations
- issue a plans certificate (if requested)
- inspect the work as it progresses
- issue a final completion certificate (if requested).
A list of approved inspectors can be viewed at the Association of Corporate Approved Inspectors. The AIs are licensed by this independent board for every 5 years. They are also backed by insurance while the public building control authorities do not have that. AIs have become an important player in the market in the past few years. According to the study conducted by the Department for Communities and Local Government in February 2008, AIs have 64% of commercial market.
By hiring AIs companies eliminate need of dealing with different external companies. It also eliminates need for companies deal with Building Control Department of Local Authority. However, the Local Authority is still responsible for the enforcement of the Regulations. If the AI discovers contraventions of the Building Regulations, the project must revert to the Local Authority for the purposes of prosecuting any offence. Unsurprisingly, the number of contraventions notified to LABC by AI's is extremely low. Additionally, Local Authorities still have the power to cancel Initial Notices under certain circumstances e.g. the works have not commenced with the prescribed period (currently 3 years from the date of deposit).
The building control process was deregulated under the Building Act 1984, and became an alternative to formal process of building control. Currently, there are 60 AIs that are recognized in England and Wales, accounting for about 20% of all building control work. The other decisive factor for a company is time. AIs would provide for more expeditious time-limits as a whole. Plan approval could be done by them in 2-3 weeks, whereas the Local Authority would take 6 to 8 weeks, according to statutory time-limits.
BuildCo would most likely choose the AI given that it is not a one time project and would be commercially viable. In addition to that AI ensures timely advice upon the request of client. Approved Inspectors usually operate nationally and bring consistency of interpretation of the Building Regulations.
AI can provide input on the design aspects of Building Regulations to BuildCo when it applies for the planning permission.
Once the planning permission (consent) is obtained from Planning Department in Local Authority, the AI sends a notice to the Building Control Department of Local Authority that it would take the responsibility over the building control process. In return within 5 days it will receive a notice of acknowledgement that is not conditional to beginning the works.
Construction works may begin as soon as the notice has been filed to the Local Authority. AI, for BuildCo’s case, would conduct at least 8-9 inspections at various stages of construction and risk based factors.
The cost for the services of AI is comprised of the several elements and is mostly charge on hourly basis. The below estimate is a sample of what an average cost breakdown by an AI looks like:
Plan checking GBP 1280; Inspections (9 sessions x 2h x GBP 80) GBP 1440; Structural checking GBP 160; Consultations GBP 40; Electronic/Internet drawings GBP 75; Meetings GBP 300; Administrative GBP 40; Inspections petrol fee (40 miles x GBP 3.6) GBP 144; Contingency GBP 417. Total: GBP 3,896.
Agency: Approved Inspector
|
1 day
|
GBP 3,896
|
| 2 |
Obtain planning permission
BuildCo. needs to obtain planning permission from the local planning authority (in London, the decision-maker is the relevant London Borough where the site is located. There are 33 Boroughs in Greater London).
The planning application must be accompanied by a plan of the site, drawings showing the proposed development, and any other information the local authority considers necessary. The local authority publishes a list with the information it considers necessary on its website, so that applicants know what is asked of them. The relevant legislative framework is the Development Management Procedure Order (2010) - see section on Reform Update. If BuildCo is submitting a paper application, it must also provide at least 3 copies of the accompanying documents. Alternatively, BuildCo can apply online via the Planning Portal, which accepts electronic planning applications on behalf of all London Boroughs, using a standard application form that was introduced across England in 2008. If it applies electronically, no further copies are requried. A fee is charged for the planning application, based on the amount of floorspace that would be created by the scheme.
The size of BuildCo's proposed development falls below the threshold for a 'major application', which means that the time frame for a decision is 8 weeks rather than 13. During this period, the local planning authority will publicise the application in the surrounding area, and consult a number of statutory consultees - bodies with a specialist responsibility for e.g. nature conservation, heritage protection, highways - who may wish to comment on the acceptability of the proposal from their perspective. The local authority takes these views, and the views of any local people who wish to comment on the application, this will be taken into account to grant or refuse permission. If no decision is made within 8 weeks, or if the authority decides to refuse permission, the applicant is entitled to appeal to the Secretary of State.
Additionally, in April 2010, the Government introduced new 'permitted development' rights for businesses who want to extend their exisiting premises. This means that minor extensions, which would previously have required planning permission, may proceed without it, thereby saving time for the business owners and enabling local planning authority staff to concentrate on larger and more important projects.
Agency: Planning Department of Local Authority
|
56 days
|
GBP 6,030
|
| 3 |
Submit application to local Fire Safety Office and obtain approval
Approved Inspector submits respective elements of the drawing and plans pertinent to fire safety to a local Fire Safety Office, as part of the formal plan vetting process in order that they can assure themselves that the building is compliant with the latest fire safety Legislation and that the appropriate fire and life safety systems are in place. That can be sent in an envelope. The Fire Office responds by law within 15 business days (21 calendar days) and sends its comments and approval. This is done in the process of building regulation plan approval, and recorded as independent procedure since AI interacts with Fire Officer.
Upon the completion of the building BuildCo before used to obtain a Fire Certificate from Fire Safety Office. The Fire Certificate is is no longer required following the reforms in the Regulatory Reform (Fire Safety) Order 2005 (FSO 2005) which came into effect in October 2006, and replaced over 70 pieces of fire safety laws.
The FSO applies to all non-domestic premises in England and Wales, including the common parts of blocks of flats and houses in multiple occupation (HMOs). The FSO 2005 is a tool for self –regulation of businesses for the fire risk of the premises.
Under the FSO, the responsible person must carry out a fire safety risk assessment and implement and maintain a fire management plan. The companies have to carry out a risk assessment by completing a 5-step fire risk assessment survey online: (http://www.fire.gov.uk/Workplace+safety/WhatTheLawRequires/)
According to this survey- FSO 2005 the warehouse of BuildCo would be classified as medium risk object. Since there will be more than 5 people occupying/working in the building, BuildCo would need to file the copy of completed FSO 2005 to the local Fire Safety Office. BuildCo does not need to wait for the approval or any other consent before using the premises. This risk is with the building operators they are deemed liable for any problems.
Fire Safety Office may conduct an inspection under risk based scheme: whether there was a similar track record of companies with fire, or neighbours complain, etc. Small scale and standard objects would be seldom inspected. Also, given that this would be a new building it would be assumed by the Fire Safety Office that the latest techniques of fire safety prevention would have been considered during the planning process.
Agency: Fire Safety Office
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21 days
|
no charge
|
| 4 |
Obtaining water and sewerage connection
BuildCo must file a letter of intent and must buy all materials for the connection itself.
|
20 days
|
GBP 5,100
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| * 5 |
Receive inspection from the water provider
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1 day
|
no charge
|
| * 6 |
Obtaining phone connection
BuildCo must file a letter of intent and must buy all materials for the connection itself. According to British Telecom the largest service provider in the UK, a new line is normally installed within four working days if the object is in a digital exchange area. If it is in one of the few exchange areas which have not yet been fully upgraded, this may extend to six working days. In practice, however the connection may take up to 2 months even for areas with existing telecom communications.
The updated fee schedule for obtaining a new fixed telephone line for businesses from British Telecom costs GBP 106.37.
Agency: British Telecom
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7 days
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GBP 106
|
| * 7 |
Receive inspection from the telecom provider
Agency: British Telecom
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1 day
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no charge
|
| * 8 |
Request and receive Energy Performance Certificate from Accredite Energy Assessor
Following the nationwide implementation of the "Energy Performance of Buildings Directive" adopted, on 16th December 2002, as of 4 January 2009 all commercial buildings whenever built, rented or sold require an Energy Performance Certificate. The certificate records how energy efficient a property is as a building and provides A_G ratings. It is the responsibility of the builder/constructor to give the Energy Performance Certificate and Recommendations Report to the Purchaser on physical completion of the building and notify the local authority Building Control officers or approved inspectors, who will not issue a Certificate of Completion until the EPC is provided.
They are produced using standard methods and assumptions about energy usage so that the energy efficiency of one building can easily be compared with another building of the same type. This allows prospective buyers, tenants, owners, occupiers and purchasers to see information on the energy efficiency and carbon emissions from their building so they can consider energy efficiency and fuel costs as part of their investment.
An EPC is always accompanied by a recommendation report that lists cost effective and other measures (such as low and zero carbon generating systems) to improve
the energy rating. A rating is also given showing what could be achieved if all the recommendations were implemented.
The fee for the EPC may vary between GBP 55 to GBP 100.
Agency: Accredited Energy Assessor
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1 day
|
GBP 78
|
| 9 |
File completion certificate to Building Control Department of Local Authority
Once the building is completed BuildCo would notify AI about the completion. AI completes the final inspection within 24 hours and prepares the certificate of completion. AI will file copy of completion certificate to Building Control Department of Local Authority within 5 days after completion of final inspection. LABC then files the documents and sends an acknowledgement of receipt to BuildCo/AI. Although, legally not required, Building Control Department, in practice may conduct an inspection. LABC is not required to issue an approval of a Completion Certificate issued by an AI, however, failure by BuildCo to obtain one may prove to be problematic.
Agency: Local Building Control Department
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1 day
|
no charge
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* Takes place simultaneously with another procedure.