Doing Business Methodology for building permits
on the topic of building permits It records all the processes required for a business in the construction industry to build a warehouse along with Times, Costs and Building quality control indexes. index) to assess the quality of building regulations Strengthening quality and safety control mechanisms Liability and Insurance System and professional certification requirements The data is collected through questionnaires given to construction licensing professionals, including architects, civil engineers, construction lawyers. Construction company, utility service provider and government officials involved in building regulations, including approvals, licensing and inspections.
Therefore, it can be concluded that in the Ease of Doing Business ranking on this topic of building permits will be determined from the average scores of the 4 sub-elements as follows: Number of procedures, duration, cost and building quality control index.
Efficiency of construction permitting
The warehouse creation process is divided into different steps for each query. It will ask for information for calculating time and costs to complete each step. as the following figure
These steps are included in the following cases:
- Get all the plans and surveys required by architects and engineers to start designing building plans. (for example, a topographic survey, location map, or soil test)
- Obtaining and submitting all relevant project-specific documents (such as building plans, sitemaps, and urbanization certificates) to the authorities
- Hiring a supervisor, engineer or external auditor (if required).
- Obtaining all required licenses, permits and certificates
- Send all necessary notifications for the start and end of construction and for inspections.
- Requesting and receiving all necessary checks (unless performed by a privately employed third party auditor)
This also includes the procedure for obtaining connections for water and sewerage. It also counts the steps required to register a warehouse so that they can be used as collateral or transferred to another legal entity.
Case study hypothesis
So that the data can be compared in many economic zones around the world. Therefore, it is necessary to formulate several assumptions. It is divided into 3 parts: construction companies Warehouse construction project and connection utilities
The construction company
- Being a limited company (or legal equivalent)
- It operates in the country's largest business city. For 11 countries, data is compiled for the second largest business city.
- Owner is local and 100% private.
- There are owners and no one is a legal entity.
- Get a license and be insured to carry out construction projects such as building a warehouse.
- There are 60 other builders and staff, all of whom are nationals of the country with the technical expertise and professional experience required to obtain permits and construction approvals.
- There are licensed architects and licensed engineers either registered with the Association of Architects or Local Engineers (if applicable).
- Contracting companies must not assume that other employees are technical or licensed professionals, such as geological or topographic experts.
- have paid all taxes and taken all necessary insurance related to normal business activities (for example, accident insurance for construction workers and third party liability)
- Own the land where the warehouse will be built and will sell the warehouse when it's built.
- It is used for general storage activities such as storing books or stationery. The warehouse will not be used for any goods that require special conditions such as food, chemicals or drugs.
- There are two floors. Both floors have a total construction area of approximately 1,300.6 square meters (14,000 square feet). Each floor will be 3 meters (9 feet 10 inches) high.
- It has access to roads and is located on the outskirts of the city's largest economy. (that is, on the edge of the city For 11 countries, data will be collected for the second largest business city.
- not located in the special economic zone or industrial zone
- It sits on approximately 929 square meters (10,000 square feet) of land that is 100% owned by the contractor and is properly registered in the Land Register and freehold land plots. However, when the land is owned by the government and leased by a contractor, the contractor will be deemed to register the land in the Land Register or Land Register or both, whichever is the case, will be effective once the warehouse is complete.
- It is worth 50 times the per capita income.
- must be a new construction (no previous construction on the land) without trees, natural bodies of water, nature reserves or any historical monuments on the land.
- There are complete architectural and technical plans prepared by licensed architects and licensed engineers. If the planning of the plan requires procedures such as obtaining additional documentation or obtaining pre-approval from an external agency, these will be counted as separate steps.
- It will include all the technical equipment needed to be fully operational.
- It will take 30 weeks to build (except for all delays due to administrative and regulatory requirements).
The utility connections [water and sewerage]
- Must be 150 meters (492 feet) from existing water sources and sewers if there is no water supply infrastructure in the economy. will have to drill holes If there is no sewerage infrastructure The smallest septic tank will be installed or built.
- If water is not required for fire protection reasons, a fire suppression system (dry system) is used instead. If the law requires a wet fire protection system The water requirements listed below shall be deemed to also cover the water required for fire protection.
- An average water consumption of 662 liters (175 gallons) is required per day and an average wastewater flow of 568 liters (150 gallons) per day. There will be a maximum water consumption of 1,325 liters (350 gallons) per day and wastewater flow. Up to 1,136 liters (300 gallons) per day
- There is a constant level of water demand and wastewater flow throughout the year.
- Connecting pipes will be 1 inch diameter for water supply and 4 inch diameter for sewer.
Procedure (Number of steps)
In this section, the procedure is any interaction of any employee, manager of the Company, or any department acting on behalf of the Company with a person outside the Company. such as government agencies such as the Department of Lands and Waterworks, hiring external private auditors or technical experts, etc. The interactions between employees of the company such as the development of warehouse plans and inspections by in-house engineers. are not counted as steps. However, interaction with outsiders is necessary for architects' work in preparing plans and drawings. (eg obtaining a topographic or geological survey) or to have such documents approved or stamped by a third party shall be deemed as a procedure. Including the steps the company has taken to connect the warehouse to the water supply and sewerage.
All steps required by law and in practice by most companies to build warehouses are counted, although in exceptional circumstances they may be avoided. For example, obtaining technical conditions for electricity. will be counted as a separate step. If necessary for obtaining a building permit
Time (Duration counted as days)
Time is recorded on calendar days. The measurement captures the average amount of time that local experts have identified as necessary to implement the procedure in practice. It is assumed that the minimum time required for each procedure is one day, except for the procedure that can be done completely online where the time is recorded as half a day. and in case the steps may take place simultaneously But it can't start on the same day. (That is, the simultaneous steps will start on consecutive days.) Again, except for the steps that can be done completely online. If the process can be expedited legally at an additional cost, the fastest step will be chosen. If that choice has a greater effect on the economy's score. It also assumes that the contractor does not waste time and is committed to completing each remaining step without delay. The time it takes for the contractor to collect the information is not taken into account. It is assumed that the contractor complies with all building requirements and in the prescribed order.
Cost (The cost required to complete each step. as a percentage of per capita income)
Expenses are recorded as a percentage of the warehouse value. (assuming 50 times per capita income) and only official expenses are recorded. All fees associated with the proceedings to legally build the warehouse are recorded, including fees associated with obtaining land use approvals and pre-construction design voids. Get an inspection before, during and after construction. Getting Connected Utilities and register the warehouse where the property is registered In addition, taxes that do not occur are recorded to complete the warehouse project. Sales tax is not included in this cost. (eg VAT) or capital gains tax to be recorded. This includes a deposit that must be paid in advance and will be refunded later.
Building ordinances, building regulations or building laws, these information will be requested from local experts and the specific rules and fees tables are used as a source of cost. If multiple local partners provide different estimates, the reported mean values will be used.
Building quality control
Building quality control is based on six indexes: building regulatory quality. Quality control before, during and after construction Liability and Insurance System and the Professional Certification Index The metrics are based on the same case study assumptions that measure performance.
- Quality of building regulations index consists of 2 components
- Building regulations are easily accessible. 1 point will be awarded if building regulations The building regulations (including building regulations) or building permit regulations are available on the website updated when new regulations are passed and 0.5 points are awarded if the building regulations are applied free of charge. You will receive 0 points if building regulations are to be purchased or if they are not easily accessible from anywhere.
- Are the requirements for obtaining a construction permit clearly stated? 1 point will be awarded if the building regulations (including building provisions) or websites, brochures or pamphlets The accessible list clearly states the documents required to be submitted. Fees to be paid and all necessary pre-approvals of the process (example: electricity, water and sewerage) or the program of the relevant authority and will be scored 0 if none of these sources specifies these requirements. or if these sources specify fewer than three requirements mentioned.
The index ranges from 0 to 2 points, with higher values indicating more clear and transparent building regulations. For example, in New Zealand all applicable laws can be found on the official government website (Score 1), the law states. List of documents required to submit fees payable and all necessary pre-approvals of a process or scheme by the relevant authority (score 1). Adding these numbers earns New Zealand a score of 2 on the Regulatory Building Quality Index.
- Quality control before construction index consists of 1 component
- Regardless of the law A licensed architect or licensed engineer must be part of a committee or team that reviews and approves building permit applications and whether the person has the authority to refuse the application. If the plan does not meet the regulations 1 point is awarded if the National Association of Architects or Engineers The building plan (or equivalent) must verify the building plan, or an independent company or expert licensed architect or engineer must review the plan. Alternatively, the architect or engineer preparing the plan must submit a certificate to the licensing authority stating that the plan complies with building regulations. or if the licensed architect or engineer is part of the committee or team that approves the map of the relevant licensing agency and will score 0 if no licensed architect or engineer is involved in the Check the plan to ensure it complies with building regulations.
The index ranges from 0 to 1, with higher values indicating better quality control in reviewing building plans. Construction permits, including plans and drawings, must be checked, and both licensed architects and licensed engineers. whether it is part of the team that checks the plans and drawings Rwanda is therefore rated 1 on the Pre-Construction Quality Control Index.
- Quality control during construction index consists of 2 components.
- Will the inspection be enforced by law during the construction process? A score of 2 will be assigned if (1) a government agency is legally mandated to conduct a technical audit at various stages during construction or an internal engineer. (i.e. an employee of a construction company), an external engineer or company is legally obliged to carry out technical inspections at various stages during the construction of the building and shall submit a detailed inspection report upon completion of construction; and (2) There are legal regulations to conduct audits according to risks. 1 point is awarded if a government agency is legally mandated to conduct technical audits at various stages during construction or in the case of internal engineers. An external engineer or external inspection company is legally mandated to carry out technical inspections at various stages during the building's construction and to submit a detailed inspection report upon completion. construct A score of 0 is awarded if a government agency is legally mandated to conduct an unscheduled audit or if there is no technical review required by law.
- Will the inspection during construction be carried out in practice? A score of 1 is assigned if a statutory mandated audit during construction takes place in practice, and 0 points are awarded if a statutory mandated audit does not take place in practice. Or checks happen most of the time but not every time. or the audit is not mandated by law, whether the audit actually takes place in practice or not.
This index ranges from 0 to 3, with higher values indicating better quality control during the construction process. For example, in Antigua and Barbuda. Development regulators are legally mandated to carry out procedural audits under the Physical Planning Act 2003 (score 1). However, development regulators rarely perform these audits in practice (score 0). Adding these numbers gave Antigua and Barbuda a score of 1 in quality control during the Construction Index.
- Quality control after construction index consists of 2 components.
- Is the final review required by law? to verify whether the building is built according to the approved plans and existing building regulations A score of 2 will be given if the maintenance engineer in An external engineer or an external inspection company is legally mandated to verify that the building was built as approved. Existing building plans and regulations or if a government agency is legally mandated to perform a final inspection once the building is complete and 0 points will be awarded if there is no statutory final review after construction and no. Requires an outside party to verify that the building was built in accordance with the approved plans and existing building regulations.
- Is there a final audit to be carried out in practice? A score of 1 is awarded if a legally mandated final inspection after construction often takes place in practice or if the supervisory engineer or company certifies that the building is built according to approved plans and regulations. Existing buildings and 0 points will be awarded if the statutory mandated final inspection does not take place in practice. or final, legally mandated audits occur most of the time. but not every time or if the final review is not mandated by law, whether or not it happens in practice.
This index ranges from 0 to 3, with higher values indicating better quality control after the construction process. For example, in Haiti Municipality of Port-au-Prince It was legally mandated to carry out a final inspection under the 2012 National Building Code (score 2). However, the final review did not take place in practice (score 0). Increasing these numbers gave Haiti the score. 2 In terms of quality control after the construction indexง
- Liability and insurance regimes index consists of 2 components.
- Any party involved in the construction process shall be legally liable for latent defects such as structural defects or problems in the building when in use. A score of 1 will be assigned if at least two of the following parties are legally liable for structural defects or problems in the building when they are in use: (1) an architect or engineer who designs plans for a specialist building or unit; Work performed (2) a professional or agency that performs a technical inspection (3) a construction company, and 0.5 points will be awarded if only one of the parties is legally liable for structural defects or problems. in the building when in use and 0 points are awarded if neither party is liable for structural defects or problems in the building when in use. or if the project owner or the investor is solely liable or if liability is determined in court or if liability is stated in the contract.
- Professional certifications index consists of 2 components.
- Qualifications of the specialist responsible for verifying that architectural plans or drawings comply with building regulations. A score of 2 is assigned if national or state regulations require the practitioner to have at least one primary year of practical experience. Must have completed a university degree (minimum bachelor's degree) in architecture or engineering and must be registered as a member of the National Architects or Engineers or pass a qualification exam. 1 point is awarded if national or state regulations require practitioners to complete a university degree. (minimum bachelor's degree) in architecture or engineering and must have at least years practical experience or be registered as a member of the National Architects or Engineers or pass a qualification examination. A score of 0 is given if national or state regulations require a practitioner to meet only one of the above requirements. or if they stipulate that practitioners must meet two requirements but both do not have university degrees. There are no national or state regulations stipulating professional qualification requirements.
- Qualification requirements of professionals conducting technical inspections during construction A score of 2 is assigned if national or state regulations require the practitioner to have at least a major number of years of practical experience. Must have completed a university degree (minimum bachelor's degree) and must be registered as a member of the National Architects or Engineers or pass a qualification exam A score of 1 is assigned if national or state regulations require a practitioner to complete a university degree. (minimum bachelor's degree) in engineering and must have at least a primary year of practical experience, or must be registered as a member of the National Architects or Engineers or pass a qualification exam. A score of 0 is given if national or state regulations require a practitioner to meet only one requirement. or if they stipulate that a professional must meet two requirements, but both do not have to complete a university degree. or if there are no national or state regulations stipulating professional qualification requirements.
The index ranges from 0 to 4, with higher values indicating greater professional certification requirements. For example, in Albania Professionals conducting technical inspections during construction must have a minimum number of core years of experience, a relevant university degree, and must be a registered architect or engineer (2 points). Verifying that architectural plans or drawings are compliant with building regulations requires a minimum of a few years of experience and a university degree in architecture or engineering (score 1). Adding these numbers will give Albania a score. 3 in the Professional Certificate Index
Building quality control Index
The Building Quality Control Index is the sum of the Building Regulations Quality Score. Quality control before construction Quality control during construction Quality control after construction Liability and Insurance System and the Professional Certification Index The index ranges from 0 to 15, with higher values indicating better quality control and safety mechanisms in the construction control system.
The construction permit application will use a set of indicators to track changes related to the efficiency and quality of the construction permit system every year. Depending on the impact on the change data Some are categorized as reforms and listed in our summary of business reforms to acknowledge the implementation of key changes. Reforms fall into two categories: those that make doing business easier and those that make doing business harder. The set of indicators for building permission use only one such criterion in the reform.
The effect of data change is assessed based on the absolute change in the total score of the indicator set as well as the change in the relative score gap. Any improvement in the data leading to a change of 0.5 points or more in the score and 2% or more in the relative score gap is considered reform. Except when the change is the result of automatic indexation of official fees to price or wage indexes. for example If the adoption of the new electronic authorization system reduces time and procedures in such a way that the score increases by 0.5 points or more and the overall gap decreases by 2% or more, the change is classified as a reform. But if minor fee updates or other minor changes in metrics have an overall impact of less than 0.5 points per total score or 2% of the gap, they will not be classified as a reform. But the information will be adjusted as it is done.