Dealing with Construction Permits in
United States
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:
USD 409,509
- City: New York City
| No. |
Procedure |
Time to Complete |
Associated Costs |
| 1 |
Request plan approval and obtain approval from the New York City Department of Buildings (DOB)
The Department of Buildings (DOB) reviews construction plans to ensure that they comply with the Building Code and meet current safety standards and zoning requirements. Once plans are approved, a contractor or contractor’s representative may apply for a construction work permit.
Simple projects, as in the case of BuildCo, can opt for a fast-track service offered by the New York City Department of Buildings (DOB), called the Professional Certification Program. The program, introduced in 1996, enables registered architects and professional engineers to certify, through an affidavit signed by the owner, contractor, and all responsible professionals (architects, engineers, plumbers, and the like) that the plans they file with the department are in compliance with all applicable laws. This reduces the amount of time a builder normally would wait for a DOB permit by eliminating the process of DOB examination and approval of the plans.
The professional certification must be submitted at the time of pre-filing and in advance. A professionally certified application goes through the same pre-filing, payment, and data entry process as normal applications:
- Information on the availability of a public sewer system.
- If a private sewage treatment plant is proposed, evidence of submission of plans for approval of such a plant to the department of environmental protection and the department of health as required by law.
- The lot diagram showing compliance with the zoning resolution.
- The foundation plans.
- The floor and roof plans showing compliance with exit requirements.
- The detailed architectural, structural, and mechanical drawings.
- General description of the proposed work.
After analyzing the plans (assuming that all required documents are present), the DOB approves the application at the end of data entry.
A professionally certified application does not go through plan examination. The applicant can check the application status by using the Buildings Information System and, upon approval, can retrieve the application folder from the DOB to apply for a permit. Twenty percent of all professionally certified applications are selected for audit within 10 days of first permit issuance. The audits for new projects may take place within 30 days after the application is issued.
The overall time of application clearance is 5 days on average.
According to Building Code No. 26-212, the fee for the new building permit is "twenty-five cents and fifty-three one hundredths of a cent (25.53¢) per square foot or fraction thereof, of the total floor area of the new building, but not less than one hundred dollars per structure." The plumbing permit and foundation fee are calculated inside the above flat rate. The total would be USD 3,574.20 (14, 000 sq. ft. x USD 0.2553).
The Building Code says that "fifty percent of the total fee for the work permit, but not less than one hundred dollars, or the total fee for the work permit where such fee is less than one hundred dollars, shall be paid by or on behalf of the owner or lessee of the building premises or property affected, and shall accompany the first application for the approval of plans or other statement describing the building work when submitted prior to submission of the permit application; and the whole or remainder of the total fee shall be paid before the work permit may be issued.” Still, most companies of BuildCo’s size would opt to pay the amount upfront, not in two separate transactions. Only for large projects is dividing the amount widespread.
Agency: New York City Department of Buildings (DOB)
|
5 days
|
USD 3,574
|
| 2 |
Notarize signatures of contractor and site safety manager on work permit application form, and notarize owner’s and contractor’s signature in cost affidavit
The site safety manager must be an employee of BuildCo and possess a valid site safety manager certificate. The cost affidavit must be filed to certify estimated and actual costs, in order to obtain a work permit.
|
1 day
|
USD 2
|
| 3 |
Obtain work permit from the Department of Buildings (DOB)
After obtaining the plan approval, the company must request a work permit. The request should be accompanied by a copy of the current insurance policy of workers’ compensation insurance. This procedure must be done by the contractor even if they are not the owner of the land. Different types of work require separate licenses. However, in one application, more than one permit can be requested. For instance, plumbing and construction work permits can be requested in the same application. Nonetheless, for electrical work, the company must get a separate permit directly from the DOB’s Bureau of Electrical Control.
For a warehouse, BuildCo must request a new building permit, a plumbing permit, and a foundation and earthwork permit. The request must include the detailed architectural, structural, and mechanical plans. One to two days prior to construction works, the company must notify the DOB by phone. There is no need to obtain any confirmation or approval from notification; the notification is only to register the data in DOB’s system. The only cost associated at this stage would be USD 35 for microfilming fees.
Agency: Department of Buildings (DOB)
|
1 day
|
USD 35
|
| 4 |
Notify all the owners of adjacent plots about the works
Notification of adjacent owners, done 5 days prior to excavations for new building foundations, is necessary for obtaining the foundation and earthwork permit.
|
1 day
|
no charge
|
| 5 |
Request and obtain work permit from the Department of Buildings (DOB) Electrical Division
This work permit/approval can be requested after construction has started. Several inspections are need to obtain this approval, taking around 6 months. This process happens during construction. The company must have the work permit before it can obtain the final certificate of occupancy. Assuming that construction takes 30 weeks, the company will be able to obtain this document before requesting the certificate of occupancy. The procedure is undertaken by a licensed engineer, who is part of staff of BuildCo and applies on behalf of the company. The application fee is USD 40.
Agency: DOB’s Electrical Division
|
1 day
|
USD 40
|
| 6 |
Request and obtain work permit from the Department of Environmental Protection
A licensed professional must apply on behalf of the company to the authority.
Agency: Department of Environmental Protection
|
1 day
|
USD 75
|
| 7 |
Request and obtain work permit from the Department of Transportation
A Construction Activity Permit fee costs USD 50, and is valid for 90 days unless otherwise stated. Once after the 90 days expire, the company buys another work permit for the remaining period of construction. On applying, the company gets an account number, and on the next day obtains the work permit.
Unless otherwise authorized, permits shall be kept at the work site or designated field headquarters at all times and shall be made available for inspection upon request of any police officer or any authorized employee of the Departments of Environmental Protection, Buildings, Police, and Transportation, or any other city employees specifically authorized by the Commissioner to enforce these rules.
Agency: Department of Transportation
|
2 days
|
USD 50
|
| 8 |
Request and obtain work permit from the Department of Transportation
The construction activity permit fee is USD 50, and the permit is valid for 90 days unless otherwise stated. Once the 90 days expire, the company buys another work permit for the remaining period of construction. On applying, the company gets an account number and obtains the work permit the next day.
Unless otherwise authorized, permits shall be kept at the work site or designated field headquarters at all times and shall be made available for inspection upon request of any police officer or any authorized employee of the Departments of Environmental Protection, Buildings, Police, and Transportation, or any other city employees specifically authorized by the Commissioner to enforce these rules.
Agency: Department of Transportation
|
2 days
|
USD 50
|
| 9 |
Request Occupancy certificate from the Department of Buildings (DOB)
Upon completion of construction, the company must arrange for DOB inspections. For construction and plumbing, the company should contact the borough office where property is located.
After completion of satisfactory inspections and submission of the required fillings (including inspections reports), DOB issues a new certificate of occupancy that describes the legal use and occupancy of a property.
Each application must be accompanied by an accurate and complete lot survey made by a licensed surveyor. If the certificate of occupancy application is not signed by a professional engineer or registered architect, the form must be notarized by an official notary public.
To obtain the certificate of occupancy, the company must obtain the work permit/approval from the Bureau of Electrical Control, the Department of Environmental Protection, and the Department of Transportation. If these approvals have not yet been granted at the time of applying for the certificate of occupancy, a temporary certificate can be issued. The company then has a year to obtain all the necessary approvals.
If the building does not comply with all the plans and the New York City building code, the company must make the necessary changes. Then the Department of Buildings inspects the warehouse again. This process is repeated until the building complies with all the rules. It is common to have 2–3 inspections of this sort. Once the building passes the inspection, the issuance of the certificate of occupancy is immediate.
Agency: Department of Buildings (DOB)
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1 day
|
no charge
|
| * 10 |
Receive on-site inspection by the Department of Buildings (DOB)
The inspection takes place after all inspections (electricity, water and sewerage, and transport) have taken place.
Agency: Department of Buildings (DOB)
|
1 day
|
no charge
|
| * 11 |
Obtain occupancy certificate from the Department of Buildings (DOB)
Agency: Department of Buildings (DOB)
|
8 days
|
no charge
|
| * 12 |
Receive on-site inspection by the Department of Environmental Protection (DEP) and obtain approval
Approval from the Department of Environmental Protection is granted after inspection.
Agency: Department of Environmental Protection (DEP)
|
1 day
|
no charge
|
| * 13 |
Receive on-site inspection by the Department of Transportation (DOT) and obtain approval
Approval from the Department of Transportation is granted after inspection.
Agency: Department of Transportation
|
1 day
|
no charge
|
| 14 |
Request and connect to telephone services
Information can be obtained from www.verizon.com.
Agency: Verizon
|
2 days
|
USD 55
|
| * 15 |
Request and connect to water and sewage services
The connection is established by the plumber. After obtaining the certificate of occupancy, the company must call the Department of Environmental Protection to request the service and provide billing. Part of this cost is paid upfront for the approval by the Department of Environmental Protection, and the remaining part is paid in the quarterly bill.
Agency: Department of Environmental Protection
|
1 day
|
USD 2,155
|
* Takes place simultaneously with another procedure.