A high-quality construction regulation is imperative for securing public safety as well as for the health of the building sector and the economy of the nation as a whole. An effective regulatory system in Dealing with Construction Permits (DCP) helps the building to achieve the minimal safety requirement while making the process more efficient, transparent and affordable. However, striking the optimal balance between the objectives of the regulations governed by authorities and technical agencies, and business request for efficient and faster approval process can be truly challenging.
World Bank records all procedures required for a business in the construction industry to build a warehouse along with the time and cost to complete each procedure. In addition, World Bank 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. World Bank excludes the land matter in its study.
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.
(Source: World Bank)
Construction-related formalities may affect the whole construction service value chain ranging from zoning and land use requests to demolition permits and regularization of informal buildings. As for dealing with construction permits, the assessment and review only target the time, procedures, and cost involved from the stage of planning permission to the certificate of completion and compliance.