Article Index
Dealing with construction permits
Procedures, time and cost to complete all formalities to build a warehouse and the quality control and safety mechanisms in the construction permitting system
This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits,This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits,submitting all required noti cations, requesting and receiving all necessary inspections and obtaining utility connections. Inaddition, the Dealing with Construction Permits indicator measures the building quality control index, evaluating the quality ofbuilding regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professionalcerti cation requirements. The most recent round of data collection was completed in June 2017.
| What the indicators measure | Case study assumptions |
|
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 warehouse value) Official costs only, no bribes Building quality control index (0-15) Sum of the scores of six component indices: 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) |
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 ve 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:
approximately 1,300.6 square meters (14,000 square feet). Each oor 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.
The water and sewerage connections:
average wastewater ow 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 ow of 1,136 liters (300 gallons) a day. - W i l l h a v e a c o n s t a n t l e v e l o f w a t e r d e m a n d a n d w a s t e w a t e r o w throughout the year; will be 1 inch in diameter for the water connection and 4 inches in diameter for the sewerage connection. |
Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their distance to frontierNote: The ranking of economies on the ease of dealing with construction permits is determined by sorting their distance to frontierscores for dealing with construction permits. These scores are the simple average of the distance to frontier scores for each of thecomponent indicators.
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list formen and women, the graph shows the time for women. For more information on methodology, see the Doing Business website(http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below.
| Number | Procedures | Time to Complete | Associated Costs |
| 1 |
Obtain lot plan and a certificate of registration
Agency: Cadastre - Direction des Domaines et Conservation foncière
BuildCo must obtain a certified zoning map and a certi cate of registration in order to apply for a permis de remblai.
|
7 days | No charge |
| 2 |
Apply and obtain a "permis de remblai" (embankment) at the DirectionApply and obtain a "permis de remblai" (embankment) at the Directionde l'Habitat et l'Urbanisme Agency : Department of Housing and Urban Development (Direction del'Habitat et l'Urbanisme)To apply and obtain an embankment permit, BuildCo must submit: • A letter • A registration certificate issued by the Direction des Domaines et de laConservation Fonciere • A location plan/urbanisme plan issued by the cadastre service at theDirection des Domaines et de la Conservation FonciereUpon this request, the Direction de l'Habitat et l'Urbanisme will issue a"permis de remblai" and its volume. |
7 days | No charge |
| 3 |
Register articles of association with the Direction des ImpôtsRegister articles of association with the Direction des Impôts Agency : Service des Impots All new companies must register statutes with the Direction des Impôts. |
1 day | No charge |
| 4 | Receive inspection to verify the compactness of the embankment from the LBCE
Agency : LBCE- Laboratoire Central du Bâtiment et de l'Equipement
The LBCE -- Laboratoire Central du Bâtiment et de l'Equipement -- will inspect the embankment. The cost that LBCE offers for a test of compactness is DJF 6,000.00 for every 200 sq. m. at a depth of 30 cm.
It is assumed that BuildCo will request a depth of 90 cm. Therefore for a plot of land of 929 sq. m. and a compactness of 0.9 m, the cost paid by BuildCo's would be land (DJF 6,000.00 * (5 * 3)) = DJF 90,000.00.
If LBCE is satis ed that the compactness is adequate, they will transmit the signed request to DHU for the issuance of the certificate of compliance for the embankment.
|
1 day | DFJ 90,000 |
| 5 | Obtain certificate of compliance for the embankment (certificat de conformite de remblai)
Agency : Direction de l'Habitat et l'Urbanisme
Once the signed document from LBCE is received, the Direction de l'Habitat et l'Urbanisme will issue the certificate of compliance (certificat de conformité de remblai) for BuildCo.
|
14 days | No charge |
| 6 |
Request and obtain nal ground plans (plan de masse cadastral)
Agency : Sous Direction de la Conservation Foncière (de la Direction des Domaines et de la Conservation Foncière)
After obtaining the permit and certi cate of compliance for the embankment, BuildCo must request and obtain the final ground plans at the Sous Direction de la Conservation Foncière (de la Direction des Domaines et de la Conservation Foncière). A tax on embankment must be paid: DJF 100.00 per cubic meter.
This map de nes the boundaries of the land and must be attached to the application for the building permit, or else the application will not be accepted by the DHU. Sub-Directorate of Lands and Land Conservation will identify a date to issue the Plan de Masse Cadastral and the final pegs installation on the lot.
|
7 days | DFJ 83,610 |
| 7 | Obtain building permit Agency : Direction de l'Habitat et l'Urbanisme BuildCo must submit 6 copies of the le for the building permit request to the DHU (Direction de l'Habitat et l'Urbanisme). The 2.5% tax that the company must pay is divided as follows: • 1.5% for analysis of the request for the building permit • 1.0% for the surveillance of the concrete structure (study and works) |
15 days | DFJ 423,932 |
| 8 | Receive first concrete test from the LBCE- Laboratoire Central du Bâtiment et de l'Equipement Agency : LBCE- Laboratoire Central du Bâtiment et de l'Equipement Construction testing occurs at each phase of the building process. Concrete crushing test is done at 7 days, then at 14 days and nal one at 21 days. |
7 days | DFJ 172,800 |
| 9 | Receive second resistance test from the LBCE- Laboratoire Central du Bâtiment et de l'Equipement Agency : LBCE- Laboratoire Central du Bâtiment et de l'Equipement This is the second concrete crushing test done 7 days after the rst one. |
7 days | No charge |
| 10 | Receive nal resistance test from the LBCE- Laboratoire Central du Bâtiment et de l'Equipement Agency : LBCE- Laboratoire Central du Bâtiment et de l'Equipement This is the final concrete crushing test done 7 days after the second test was done. |
7 days | No charge |
| 11 | Request and receive an earthquake certificate issued by the Direction de l'Habitat et l'Urbanisme Agency : Direction de l'Habitat et l'Urbanisme To obtain the certi cate of conformity after construction is complete, it is mandatory to obtain an earthquake certificate issued by the Direction de l'Habitat et l'Urbanisme. BuildCo can request this certi cate by visiting the agency in person. The earthquake certificate is obtained as soon as the different slabs have been casted from the Sous-Direction Contrôle de la Direction de l'Habitat et de l'Urbanisme on the basis of "good casting." The certificate is issued the next day after verification of compliance with seismic standards. BuildCo does not have to wait for the completion of the construction to request this certificate. |
2 days | No charge |
| 12 | Request and receive foundation inspection from the Direction de l'Habitat et l'Urbanisme, Sous-direction Contrôle et Réglementation Agency : Direction de l'Habitat et l'Urbanisme, Sous-direction Contrôle et Réglementation The works begin when the concrete plans are accepted by the Sous-direction Contrôle et Réglementation. An inspection takes place when slabs are laid. This procedure is not mandatory but is standard practice. |
14 days | USD 300 |
|
>> 13 |
Request and receive an electrical certi cate of compliance
Agency : Direction de l'Habitat et l'Urbanisme
To obtain the certi cate of conformity after construction is complete, it is mandatory to obtain an electrical certificate of compliance issued by the Department of Housing and Urban Development. The electrical certificate of compliance can be requested once the internal wiring is done in compliance with the standards. Officers from the Sous-Direction de l'Urbanisme will conduct a site visit and the electrician will explain the internal wiring to the o cers. The inspection takes place one day after the request for the certi cate of compliance. After 1-2 days, the Sous-Direction de l'Urbanisme issues the electrical certificate of compliance.
|
2 days | No charge |
| >> 14 |
Request and receive an alignment certificate
Agency : Direction des Domaines et de la Conservation Foncière
To obtain the certi cate of conformity after construction is complete, it is mandatory to obtain an alignment certificate issued by the Direction des Domaines et de la Conservation Foncière.
|
2 days | No charge |
| >> 15 |
Request and receive the sanitary certificate issued by the National Institute of Public Health
Agency : National Institute of Public Health (l’Institut National de Santé Publique de Djibouti)
To obtain the certificate of conformity after construction is complete, it is mandatory to obtain sanitary certificate for the septic tank issued by the National Institute of Public Health in Djibouti.
|
2 days | No charge |
| 16 |
Submit all certificates of compliance and obtain final certificate of compliance (certificat de conformité) Agency : Ministry of Housing (Ministère de l’Habitat)Compliance of new construction is confirmed by the issuance of a Certificateof General Conformity issued by the Department of Housing and Urban Development at the end of the work.This certificate attests the conformity of the building in accordance to theapproved building permit. Several compliance certificates must be submitted: earthquake, sanitation, alignment, foundation and electrical. |
7 days | No charge |
| >> 17 |
Request and receive water and sewage connectionRequest and receive water and sewage connection Agency : Office Nationale des Eaux de Djibouti (ONEAD) For the sewage network a health certificate is issued by the Department of Epidemiology and Health Information, which is obtained in procedure 15. The water company provides the meter at no charge and BuildCo lays downthe pipes to connect it to the main line. |
21 days | USD 500 |
>> Takes place simultaneously with previous procedure.
Details – Dealing with Construction Permits in Djibouti – Measure of Quality
| Answer | Score | |
|---|---|---|
| Building quality control index (0-15) | 11.0 | |
| Quality of building regulations index (0-2) | 2.0 | |
| How accessible are building laws and regulations in your economy? (0-1) | Available online; Free of charge; In official gazette. | 1.0 |
| Which requirements for obtaining a building permit are clearly speci ed in the building regulations or on any accessible website, brochure or pamphlet? (0-1) |
List of required documents; Fees to be paid; Required preapprovals. | 1.0 |
| Which requirements for obtaining a building permit are clearly speci ed in the building regulations or on any accessible website, brochure or pamphlet? (0-1) |
List of required documents; Fees to be paid; Required preapprovals. | 1.0 |
| Quality control before construction index (0-1) | 1.0 | |
| Which third-party entities are required by law to verify that the building plans are incompliance with existing building regulations? (0-1) | Licensed engineer. | 1.0 |
| Quality control during construction index (0-3) | 2.0 | |
| What types of inspections (if any) are required by law to be carried out during construction? (0-2) | Inspections at various phases; Risk-based inspections. | 2.0 |
| Do legally mandated inspections occur in practice during construction? (0-1) | Mandatory inspections are not always done in practice during construction; Mandatory inspections are done most of the time during construction. |
0.0 |
| Quality control after construction index (0-3) | 3.0 | |
| Is there a final inspection required by law to verify that the building was built in accordance with the approved plans and regulations? (0-2) |
Yes, in-house engineer submits report for final inspection. | 2.0 |
| Do legally mandated nal inspections occur in practice? (0-1) |
Final inspection always occurs in practice.
|
1.0 |
| Liability and insurance regimes index (0-2) | 1.0 | |
| Which parties (if any) are held liable by law for structural aws or problems in thebuilding once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) | Architect or engineer; Professional in charge of the supervision; Construction company. | 1.0 |
| Which parties (if any) are required by law to obtain an insurance policy to cover possible structural aws or problems in the building once it is in use (Latent Defect Liability Insurance or Decennial Insurance)? (0-1) | No party is required by law to obtain insurance . | 0.0 |
| Professional certifications index (0-4) | 2.0 | |
| What are the qualification requirements for the professional responsible for verifying that the architectural plans or drawings are in compliance with existing building regulations? (0-2) |
Minimum number of years of experience; University degree in architecture or engineering. |
1.0 |
| What are the qualification requirements for the professional who supervises the construction on the ground? (0-2) | Minimum number of years of experience; University degree in engineering, construction or construction management. | 1.0 |