DEALING WITH CONSTRUCTION PERMITS (DCP)

DCP in World Bank Doing Business

The World Bank records the critical improvements across the world’s main regions, as indicated by the lens of the Doing Business reports. This robust benchmark tool for construction regulations measures the efficiency of building regulations defined by a standardized case study from 190 economies. The Doing Business reports track some significant improvement in building regulations over time and can serve as a source of useful measures and a proxy for regulatory trends.

To make the data comparable across economies, several assumptions about the construction company, the warehouse project and the utility connections are used.

The construction company (BuildCo):

  • Is a limited liability company (or its legal equivalent) and operates in the economy’s largest business city. For 11 economies the data are also collected for the second largest business city.
  • Is 100% domestically and privately owned; has five owners, none of whom is a legal entity. Has a licensed architect and a licensed engineer, both registered with the local association of architects or engineers. BuildCo is not assumed to have any other employees who are technical or licensed experts, such as geological or topographical experts.
  • Owns the land on which the warehouse will be built and will sell the warehouse upon its completion.

The warehouse:

  • Will be used for general storage activities, such as storage of books or stationery.
  • Will have two stories, both above ground, with a total constructed area of approximately 1,300.6 square meters (14,000 square feet). Each floor will be 3 meters (9 feet, 10 inches) high and will be located on a land plot of approximately 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the warehouse is valued at 50 times income per capita.
  • Will have complete architectural and technical plans prepared by a licensed architect. If preparation of the plans requires such steps as obtaining further documentation or getting prior approvals from external agencies, these are counted as procedures.
  • Will take 30 weeks to construct (excluding all delays due to administrative and regulatory requirements).

The water and sewerage connections:

  • Will be 150 meters (492 feet) from the existing water source and sewer tap. If there is no water delivery infrastructure in the economy, a borehole will be dug. If there is no sewerage infrastructure, a septic tank in the smallest size available will be installed or built.
  • Will have an average water use of 662 liters (175 gallons) a day and an average wastewater flow of 568 liters (150 gallons) a day.
  • Will have a peak water use of 1,325 liters (350 gallons) a day and a peak wastewater flow of 1,136 liters (300 gallons) a day.
  • Will have a constant level of water demand and wastewater flow throughout the year; will be 1 inch in diameter for the water connection and 4 inches in diameter for the sewerage connection.

Source: World Bank

Procedures to legally build a warehouse (number)

  • Submitting all relevant documents and obtaining all necessary clearances, licenses, permits and certificates
  • Submitting all required notifications and receiving all necessary inspections
  • Obtaining utility connections for water and sewerage
  • Registering and selling the warehouse after its completion

Time required to complete each procedure (calendar days)

  • Does not include time spent gathering information Each procedure starts on a separate day—though procedures that can be fully completed online are an exception to this rule
  • Procedure is considered completed once final document is received
  • No prior contact with officials

Cost required to complete each procedure (% of income per capita)

  • Official costs only, no bribes Building quality control index (0-15)
  • Quality of building regulations (0-2)
  • Quality control before construction (0-1)
  • Quality control during construction (0-3)
  • Quality control after construction (0-3)
  • Liability and insurance regimes (0-2)
  • Professional certifications (0-4)

Source: World Bank

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