Suncoast Permits records all procedures required for a business that involves construction permits in the construction industry to build a warehouse along with the time and cost to complete each procedure. In addition, Doing Business measures the building quality control index, evaluating the quality of building regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professional certification requirements. Information is collected through a questionnaire administered to experts in construction licensing, including architects, civil engineers, construction lawyers, construction firms, utility service providers, and public officials who deal with building regulations, including approvals, permit issuance, and inspections.
The ranking of economies on the ease of dealing with construction permits is determined by sorting their scores for dealing with construction permits. These scores are the simple average of the score for each of the component indicators.
The efficiency of construction permitting
Suncoast Permits divides the process of building a warehouse into distinct procedures in the questionnaire and solicits data for calculating the time and cost to complete each procedure.
These procedures include, but are not limited to:
- Obtaining all plans and surveys required by the architect and the engineer to start the design of the building plans (for example, topographical surveys, location maps, or soil tests).
- Obtaining and submitting all relevant project-specific documents (for example, building plans, site maps, and certificates of urbanism) to the authorities.
- Hiring external third-party supervisors, engineers, or inspectors (if necessary).
- Obtaining all necessary clearances, licenses, permits, and certificates.
- Submitting all required notifications for the start and end of construction and for inspections.
- Requesting and receiving all necessary inspections (unless completed by a hired private, third-party inspector).
Suncoast Permits also records procedures for obtaining connections for water and sewerage. Procedures necessary to register the warehouse so that it can be used as collateral or transferred to another entity are also counted.
To make the data comparable across economies, several assumptions about the construction company, the warehouse project, and the utility connections are used.
Assumptions about Construction Permits for Construction companies
The construction company:
- Is a limited liability company (or its legal equivalent).
- 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.
- Is fully licensed and insured to carry out construction projects, such as building warehouses.
- Has 60 builders and other employees, all of them nationals with the technical expertise and professional experience necessary to obtain construction permits and approvals.
- Has a licensed architect and a licensed engineer, both registered with the local association of architects or engineers, where applicable.
- Most construction companies are not assumed to have any other employees who are technical or licensed specialists, such as geological or topographical experts.
- Has paid all taxes and taken out all necessary insurance applicable to its general business activity (for example, accidental insurance for construction workers and third-person liability).
- Owns the land on which the warehouse will be built and will sell the warehouse upon its completion.
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