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(NAR) VOL. 29 NO. 1/ JANUARY - MARCH 18

[ DILG-DPWH-DICT-DTI JOINT MEMORANDUM CIRCULAR NO: 2018-01, January 10, 2018 ]

GUIDELINES IN STREAMLINING THE PROCESSES FOR THE ISSUANCE OF BUILDING PERMITS AND CERTIFICATES OF OCCUPANCY



Adopted: 04 January 4, 2018
Date Filed: 10 January 2018


1. BACKGROUND

1.1 President Rodrigo Roa Duterte’s 10-point socio-economic agenda includes “increasing competitiveness  and the ease of doing business”, objectives that have been reiterated in the recently approved Philippine Development  Plan 2017-2022, which espouses “people-centered, clean, efficient and effective governance.”  Specifically,  the  President  wants  government  services  to be more accessible to the people through reduced documentary requirements, processing time and signatories for transactions. To achieve this, the administration is adopting a whole-of-government approach that promotes simplification of government transactions, inter-operability of government processes and strengthened linkages and coordination among agencies.

1.2 The  President,  in  his  2017  State  of  the  Nation  Address,  reiterated  his directive  to  all  government  agencies  with  frontline  services  for  “speedy reforms” that will further streamline  their respective  services to make these truly efficient and people-friendly and “to ensure that the people receive the quality   services   that   they   surely   deserve   minus   the   delays   by   the bureaucratic red tape.”

1.3 By easing the cost of doing business in the Philippines,  the government  is also aiming to raise the overall country’s current ranking of 114th  out of 190 economies  in  the  2018  International  Finance  Corporation’s   (IFC)  Doing Business Report. Specifically, in the criteria on “dealing with construction permits”, the country’s rank deteriorated at 101st, still below most ASEAN countries.   The   IFC   report   noted   that   in   the   Philippines,   securing   a construction  permit for a warehouse  requires  23 procedures  that took 123 days to complete.

1.4 In  compliance   with  President   Duterte’s   socio-economic   agenda  and  to improve the country’s ranking in global competitiveness  surveys, the Department of the Interior and Local Government (DILG), the Department of Public Works and Highways (DPWH), the Department of Information and Communications   Technology  (DICT),  and  the  Department  of  Trade  and Industry (DTI) are pursuing the streamlining of processes in securing building permits and certificates of occupancy.

2.     PURPOSE

The overall objectives of this circular are the following:

2.1 To set service standards in processing building permits and certificates of occupancy by local government units (LGUs) as well as to provide guidelines in the streamlining of relevant processes related thereto, consistent with the provisions   of   the   National   Building   Code   of   the   Philippines   (NBCP) (Presidential  Decree (PD) 1096, s. 1977), the Fire Code of the Philippines (FCP) (Republic Act (RA) 9514) and the Anti-Red Tape Act of 2007 (ARTA) (RA 9485) and their respective Implementing Rules and Regulations (IRR).

2.2 To  clarify  the  roles  and  responsibilities  of  DILG,  DPWH,  DICT,  DTI,  the Bureau of Fire Protection (BFP), and concerned offices and departments  of cities/municipalities    in   ensuring   the   implementation    of   the   necessary activities for the streamlining of subject processes.

3.     LEGAL COMPLIANCE
3.1 Section  301  of  the  NBCP  provides  that  “No  person,  firm  or  corporation, including any agency, or instrumentality, of the government shall erect, construct, alter, repair, move, convert or demolish any building or structure or cause the same to be done without first obtaining a building permit therefore from the Building Official assigned in the place where the subject building is located or the building work is to be done.” The NBCP also specifies the documentary requirements to be submitted as well as the general processes that local governments have to follow in approving the building permit application.

3.2 Section  309 of the NBCP  provides  that “No  building  or structure  shall  be used   or  occupied   and   no  change   in  the  existing   use   or  occupancy classification of a building or structure or portion thereof shall be made until the Building Official has issued a Certificates of Occupancy therefor as provided....”

3.3 Section  5  paragraph  (g)  of  the  FCP  provides  that  no  occupancy  permit, business or permit to operate shall be issued without securing a Fire Safety Inspection Certificate (FSIC) from the Chief, BFP or his/her duly authorized representative. Furthermore, under Rule 9, Division 1 (c) of the FCP, the city/municipal Fire Marshall shall review, evaluate and assess plans, design calculations and specifications, and issue the necessary building fire safety evaluation clearance (FSEC) upon determination that the design and specification is in accordance with the provision of the FCP and its IRR.

3.4 The  DPWH   National   Building   Code   Development   Office   Memorandum Circular No. 1, s. 2005 provides that, until a Building Official (BO) is fully deputized  by the Secretary  of Public Works  and Highways  for a particular local  government,   the  official  designated   by  the  concerned   local  chief executive through a Special Order to be responsible  for the enforcement  of the provisions of the NBCP as well as of its IRR shall serve as BO for said local government.

3.5 The DILG, DPWH, BFP and LGUs as well as their various instrumentalities have the authority and power to streamline the processes of securing construction-related  permits, clearances and certificates, consistent with and supportive of the provisions of pertinent national and local policies to ensure ease, comfort  and convenience  to applicants  as well as for efficiency  and prompt  delivery  of  services  by  the  government,  anchored  on  the  overall policy of the State to safeguard life, health, property and public welfare.
4.    Scope/Coverage

This Joint Memorandum Circular covers all the Regional and Provincial Directors of the DILG and DTI, Regional Directors and District Engineers of the DPWH, the DICT,  the  BFP,  the  members  of  the  Sangguniang  Panglungsod  and Sangguniang Bayan, and Local Chief Executives of all cities and municipalities.

5.    Definition of Terms

For  purposes  of  this  policy,  the  following  definitions  apply,  unless  otherwise stated:

5.1     Applicant - Any person, firm, partnership, corporation, head of government or  private   institution,   organization   of  any  character   applying   for  the issuance of permits and certificates.

5.2     Application Form - A preformatted prescribed form specified in this circular.
5.3     Backroom  -  A  working  arrangement  among  the  Office  of  the  Building Operation  Official  (OBO)  and  other  concerned  departments  and  offices under   the   local   government,   and   the   BFP   where   application   and documentary  requirements  for  building  permits  and  certificates  of occupancy are transferred and moved from one department to another for review,  evaluation  and  action  without  the  physical  interference  of  the applicant.

5.4    Estimated Value of the Building/ Structure - Measures the value of the construction installed or erected at a given location and may also be considered  as the cost of construction  including  architectural  and engineering work and labor cost as stipulated in the Building Permit Application Form as duly notarized.

5.5     Building Official (BO) - The Executive Officer of the OBO appointed by the
Secretary of Public Works and Highways.

5.6    Building Permit - A document issued by the BO to an owner/applicant to proceed with the construction, installation, addition, alteration, renovation, conversion, repair, moving, demolition or other work activity of a specific project/building/structure    or   portions   thereof   after   the   accompanying principal plans, specifications and other pertinent documents with the duly notarized  application  are found  satisfactory  and substantially  conforming with the NBCP and its IRR.
5.7    Construction - All on-site work done in the site preparation, excavation, foundation, assembly of all components and installation of utilities, machineries and equipment of buildings/structures.

5.8     Certificate  of  Occupancy  –  A  document  issued  by  the  Building  Official certifying  that  the  building/structure  was  completed  and  can  be occupied/used in accordance with the approved use.

5.9     Fire Safety Evaluation Clearance (FSEC) – A document issued by the BFP as a pre-requisite for the grant of Building Permit by the Office of Building Official having jurisdiction upon determination that the evaluated plans are compliant with RA 9514 and its IRR.

5.10   Fire Safety Inspection Certificate (FSIC) – A document issued by the BFP upon  determining  that the required  fire safety  construction  are in place, and   fire   protective   and/or   warning   system   are   properly   installed   in accordance with the approved plans and specifications and in compliance with RA 9514 and its IRR.
5.11   Notice  of  Disapproval  (NOD)  –  A  document  issued  by  the  BFP  if  the applicant fails to comply with the required documents or fire safety requirements of the RA 9514 and its IRR.

5.12   Office  of  the  Building  Official  -  The  Office  authorized  to  enforce  the provisions of the NBCP and its IRR in the field as well as the enforcement of orders and decisions made pursuant thereto.

5.13   One-Stop   Shop  for  Construction   Permits  (OSCP)  -  A  mechanism   of coordination  among  the  OBO,  Zoning  Office,  Assessor’s  Office, Treasurer’s Office, other concerned departments or offices at the local government, and the Office of the City/Municipal Fire Marshall through co- location of related functions and through a practical system of linkages.

5.14   Simple  Application  for Building  Permits  and  Certificates  of Occupancy  - Refers to applications for any of the following structures, whose floor area shall  not  exceed  1,500  square  meters:  (1)  single  dwelling  residential building of not more than three (3) floors/storeys; (2) commercial buildings of not more than two (2) floors/storeys;  (3) renovation  within a mall with issued  building  permit;  and  (4)  warehouse  storing  non-hazardous substance.
5.15   Step  - Any  procedure  taken  by  an  applicant  as  part  of  the  process  of applying  for  and/or  processing   permits  and  licenses  that  triggers  an interface,  whether physical or online/virtual,  with an action on the part of the office/unit to which the applicant has presented or communicated  with himself/herself  leading  to a result (a document,  certification,  or decision) that is necessary to secure a permit.
6.     Standards for Processing Construction-related  Permits
6.1 Standards in Processing Building Permit Applications
6.1.1 Application    Form.    A   preformatted    form    for    building    permit applications shall be prescribed in all cities and municipalities in the Philippines (refer to Annex 1). Four (4) copies of the application form for  building  permit,  duly  notarized,  shall  be  submitted  with  the required documents as described in Section 6.1.3, together with the four (4) sets of the duly accomplished ancillary permit forms.

6.1.2 A modified format of the application form for building permits can be adopted by cities/municipalities  provided that the fields in the prescribed uniform form in Annex 1 are maintained.

6.1.3 Documentary  Requirements.   Consistent  with  Section  302  of  the NBCP and its IRR, the applicant,  in applying  for a building permit, shall be required  to submit  the following  documents  together  with the application form:

a.  Certified true copy of Original Certificate of Title (OCT)/Transfer Certificate of Title (TCT) covering the subject lot and, in cases where the applicant is not the registered owner of the said lot, a duly  notarized   copy  of  the  Contract  of  Lease,  or  Deed  of Absolute  Sale;  or,  in  lieu  of  the  certified  true  copy  of  the OCT/TCT,   a  Lot   Location   Plan   generated   thru   the   Parcel Verification Service of the Land Registration Authority (LRA);

b.  Four (4) sets of survey plans, design plans and other documents prepared, signed and sealed over the printed names of duly licensed  and registered  professionals,  as stipulated  under Section 302 (3) of the IRR of the NBCP:

Four (4) sets of the following:
(i)     Architectural Documents
(ii)     Civil/Structural Documents
(iii)   Electrical Documents (iv)   Mechanical Documents (v)   Sanitary Documents
(vi)   Plumbing Documents (vii)  Electronics Documents (viii) Geodetic Documents
(ix)   Fire Protection Plan (if applicable)
c. Three  (3)  photocopies  of  valid  licenses  of  all  involved professionals  (e.g.  Professional  Tax  Receipt  and  the Professional Regulation Commission identification card);

d.  Estimated  value  of  the  building  or  structure  to  be  erected  as declared by the owner or applicant and duly notarized.

6.1.4      The  owner/applicant/design   professionals  are  enjoined  to  secure required clearances from other agencies as stipulated under Section
302  (12)  b  of  the  IRR  of  the  NBCP,  and  other  documents  or clearances from local authorities as maybe provided by local ordinances.  These clearances  shall no longer be submitted upfront to the OBO as part of the requirements for the issuance of a building permit but shall instead be submitted to the OBO thirty (30) calendar days  after  the  issuance  of  the  building  permit.  Failure  to  submit these clearances may delay the approval of the Certificate of Occupancy. Furthermore, future complaints from agencies identified under Section 302 (12) b of the IRR of the NBCP or inconsistencies from legal provisions on any of the activities covered by the building permit shall be subject to Section 207 (5) of the NBCP. On their part, the  concerned  national  government   agencies  shall  endeavor  to process such clearances within the time frame specified in their Citizen’s Charter as required in the Anti-Red Tape Act (ARTA) and its IRR.

6.1.5      The Local  Chief  Executive  (LCE)  shall designate  a representative from  the Assessor’s  Office  who  shall  be detailed  at the One-stop Shop for Construction Permits (OSCP) provided for in section 7.2 below. The assigned representative shall be responsible for (1) the issuance of a tax declaration as required in the NBCP which shall be provided  to the OBO; and (2) assessment  of new improvement  to the land where the structure will be constructed.

6.1.6      The  LCE  shall  designate  a  representative   from  the  Treasurer’s Office who shall be detailed at the OSCP, who shall be responsible for the issuance of current tax receipt of the applicant as required by the Zoning Officer and the collection of building permit fees as part of the backroom operation at the OSCP.

6.1.7    The  LCE  shall  designate  a representative  from  the Zoning Office/Planning   Development   Office   of  cities/municipalities,   who shall be detailed at the OSCP and shall be responsible for the verification/issuance of locational clearance as part of the OSCP backroom operation. The representative  shall provide a copy of the said clearance to the OBO as a documentary requirement to the building permit application.

6.1.8      The  BFP  shall  detail  staff,  who  shall  be  tasked  to  evaluate  Fire Safety Evaluation Certificates (FSEC), issue Order of Payment and receive payments at the OSCP.

6.1.9      In processing the locational clearance, the LCE and the barangays under his/her jurisdiction shall work out an arrangement whereby the city hall officials shall be allowed to collect barangay fees related to building permit and locational clearance applications, which shall be remitted to the concerned barangays at an agreed timetable.
  
6.1.10 Steps  in  Securing  Building  Permit.  The  OBOS  are  enjoined  to consider the applicants’ perspective in designing the procedures for securing  a  building  permit,  bearing  in  mind  the  Duterte administration’s promotion of “people-centered” governance that espouses simplification of government transactions. Hence, the city/municipal governments are directed to ensure that, from the perspective of an applicant, a maximum of four (4) steps, shall be followed in securing a building permit:
Step 1:   Submission   of   Application   Forms   and   Documentary Requirements;
Step 2: Receipt of the Order of Payment;
Step 3: Payment of Fees and Charges; and
Step 4: Claiming of the Building Permit.
Annex 2 contains the flow chart for processing building permits including the procedures followed by the BFP in processing FSEC applications.

6.1.11   As part of the backroom operations, the BO shall evaluate, with the BFP, the plans forwarded by the receiving officer at the OSCP, who shall provide  three sets (3) of said plans and specifications  to the Local City/Municipal Fire Marshall for review of the fire Safety requirements as contained in the FCP. Once evaluated/or approved, the BFP shall return two sets of stamped plans to the BO - one set for the owner and another set for the OBO.

6.1.12   In order to facilitate the evaluation of the building permit application, the BOs shall follow an evaluation checklist that conforms to the requirements of the NBCP and its IRR (Annex 3). Similarly, the BFP evaluators   shall  formulate   and  use  an  evaluation   checklist   for assessing the proposed building's compliance with the Fire Code provisions.  Evaluation  of submissions  shall be in accordance  with the appropriate prescribed checklists and plan reading procedures.

6.1.13   To minimize face-to-face  interaction  between an applicant and any entity of the government, cities and municipalities are encouraged to automate/computerize  systems,  processes  and/or  procedures related to the steps specified  in Section  6.1.10. Cities and municipalities  are enjoined to develop an automated system for the submission and processing of building permit applications.

6.1.14   Processing  Time. The different offices at the OSCP, functioning  as one  unit,  shall  evaluate  simple  building  permit  applications,   as defined in Section 5.11, with complete documentary requirements, within a maximum period of five (5) working days. The BFP shall process  the  Fire  Safety  Evaluation   Clearance   (FSEC)  within  a maximum period of three (3) working days and shall abide by the manual of operations  that will be developed  in relation to the JMC and other supplemental  manuals that shall be separately  prepared by individual OSCPs. For easy compliance by the applicant, applications with deficiencies shall be issued a comprehensive correction sheet and/or a notice of disapproval by the Zoning Officer, OBO and the local BFP stating all deficiencies. For applications that satisfy the requirements of the Zoning Ordinance, Fire Code, the National  Building  Code  and  its  referral  codes,  the  OSCP  shall release the Building Permit, together with the locational clearance, other ancillary permits and the FSEC, after payment of appropriate fees and charges.

6.1.15   The OBO shall provide the local BFP and the Assessor’s Office a list of issued building permits on a monthly basis (every 5th day of the month) for their reference, in anticipation of the applicant's future application for a Certificate of Occupancy.

6.1.16  Assessment of Fees. After the evaluation of the building permit application, the Zoning Officer, the BFP, and the OBO shall simultaneously  prepare an Order of Payment that will be issued to the applicant at the same time, specifying the fees that the applicant is obligated to pay in accordance with the provisions of the Zoning Ordinance,  NBCP,  FCP  and  the  local  revenue  code.  The  Zoning Officer, the BFP and the OBO shall put in place the necessary measures  to implement  a one-time  assessment  of building-related fees and charges which shall include the local fees for securing the locational clearance, barangay clearance, filing fees as described in Section 6.1.17, among others.

6.1.17   The fire code fees for the issuance of FSEC shall be based on the estimated value of the building or structure declared by the owner or applicant  duly  notarized.   In  the  event  that  there  is  substantial difference  between the estimated  value of the building or structure as declared by the owner or applicant from the amount indicated in the  application  for  the  building  permit,  the  higher  value  will  be adopted.

6.1.18   The OBO  and the BFP may collect  a filing fee, in addition  to the NBCP  and  FCP  prescribed  fees/charges,   to  cover  for  the  cost incurred in assessing  building permit and FSEC applications.  Such fee shall be set following the guidelines for setting fees and charges issued by the Bureau of Local Government Finance under the Department of Finance.

6.1.19   Payment   of  Fees.   The   OBO   and   the   local   BFP   shall   jointly implement  a  one-time  payment  of  fees  and  charges  related  to building permit applications. All related fees shall be paid by the applicant in a designated cashiering area, in the OSCP, where the city/municipal governments and the BFP shall assign a cashier to receive payments from applications for building permit and FSEC, respectively.

6.1.20   The OBO is enjoined to issue the building permit and other ancillary permits,  the  Barangay  Clearance,  the  Locational  Clearance  and FSEC upon payment of the required fees by the applicant.

6.1.21   The BFP and concerned LGUs are enjoined to establish a system of online  payment  of  fees  and  related  charges  and  other  electronic

payment scheme to facilitate the one-time assessment and payment of building permit-related fees and charges.

6.1.22   Signatories.  The Building  Official  shall sign and issue the building permit. Technical staff members are, however, enjoined to sign the review or evaluation sheets of the technical documents they were assigned to evaluate for reference of the Building Official.

6.1.23   Coordination within Local Government Departments and Barangays.
All  cities  and  municipalities  are  encouraged  to  automate/ computerize   their  databases   and  ensure   data   and  information sharing among concerned departments and offices at the local government, especially the Office of the Building Official, the City/Municipality Planning and Development Office, the Assessor's Office, the Business Permit and Licensing Office (BPLO) and the Treasurer's Office. All OBOs are enjoined to provide all information on an issued building permit to concerned departments or offices of the local government, such as the BPLO, the local Assessor’s Office and the Treasurer’s Office, as maybe deemed necessary and appropriate,  and  to concerned  barangay,  as soon  as the building permit is released to the applicant.  All cities and municipalities  are thus  encouraged   to  automate/computerize   their  databases   and ensure  capacities  for  data  and  information  sharing  among concerned departments and offices at the local government.
6.2 Standards in Securing Certificate of Occupancy
6.2.1      Application Form. A preformatted application form for Certificates of occupancy shall be prescribed in all cities and municipalities (refer to Annex 4). Three (3) copies of the application  form, duly notarized, shall  be  submitted  with  the  required  documents  as  described  in Section 6.2.3 below.

6.2.2      A   modified   format   of   the   application   form   for   certificates   of occupancy  can  be  adopted  by  cities/municipalities   provided  the same fields found in the prescribed uniform form in Annex 4 shall be maintained.

6.2.3    Documentary  Requirements.  In  applying  for  a  certificate  of occupancy, the applicant shall be required to submit the following documents:
a.  Three (3) copies of duly notarized Certificate of Completion using the form in Annex 5, signed by the owner/applicant  and signed and sealed by the duly licensed Architect or Civil Engineer in- charge of construction, together with approved plan and specifications and one copy of the construction logbook. If the construction  was undertaken  through  a contract,  the Certificate of Completion shall be signed by the contractor/Authorized Managing Officer;

b.  One  (1)  copy  of  the  issued  Building  Permit  and  the  issued ancillary permits;

c.   One (1) copy of the issued locational clearance;
d. Owner’s  copy  of  Fire  Safety  Correction  Sheet  and  its corresponding FSEC;

e. Three (3) photocopies of the valid licenses of all involved professionals  (e.g.  Professional  Tax  Receipt  and  the Professional Regulation Commission identification card); and

f.     Photograph of the completed structure showing front, sides, and rear areas.
6.2.4      In cases  when  there  are changes  in the approved  building  plans, three (3) sets of As-Built  Plan are required  to be submitted  to the OBO,  reflecting  all  the  changes/modifications/alterations/ amendments made as an additional document.

6.2.5      The  applicant,  if  required,  shall  secure  clearances  or  certificates from utility companies, independently and after the issuance of the Certificate of Occupancy. Such clearances therefore shall not be considered requirements for the issuance of said certificate.

6.2.6      Steps  in  Securing   a  Certificate   of  Occupancy.   The  OBOs  are enjoined to consider the applicants' perspective in designing the procedures  for  securing  certificates  of  occupancy.  The  following shall be considered as the maximum steps in securing certificate of occupancy by an applicant:
a.  Step 1: Submission  of the Application  Forms and Documentary Requirements as provided in Section 6.2,3;
b.  Step 2: Receipt of the Order of Payment;
c.   Step 3: Payment of Fees and Charges; and
d.  Step 4: Claiming of the Certificate of Occupancy.
Annex 6 contains the flow chart for processing the certificate of occupancy including the process of the BFP in evaluating the FSIC for occupancy permits.

6.2.7      As part of the backroom operations, the BO shall evaluate with the BFP the documents forwarded by the receiving officer at the OSCP, who  shall  provide   three   sets  to  the  Local   City/Municipal   Fire Marshall for the review of the fire safety requirements as required for the  issuance  of  the  Fire  Safety  Inspection  Certificate  (FSIC).  In addition,  the  OBO,  the  local  BFP  and  the  Assessor’s  Office  are required to form a joint inspection team for the conduct of required inspection of the structure. The city/municipal OBO shall take charge of organizing the inspection team, preparing and synchronizing the schedules   of  the  inspection   team  members   and  providing   the logistics for the inspection team. The BFP has prescribed standard forms  for  an  Inspection  Order  (Annex  7),  After  Inspection  Report (Annex 8), of Disapproval (Annex 9), and Notice to Comply (Annex 10).

6.2.8      The  evaluation  guidelines  that  BOs  may  use  in  the  review  and processing of Certificate of Occupancy applications are attached in Annex 11.

6.2.9  Pursuant  to Section  309 (4)(a)  of the IRR of the NBCP,  a partial Certificate of Occupancy may be issued for the use or occupancy of a portion or portions of a building or structure prior to the completion of the entire building or structure, through the proper phasing of its major independent portions without posing hazards to its occupants, the adjacent building residents  and general public, Consistent  with this, the BFP  may issue  the appropriate  FSIC  consistent  with the portion or portions of a building or structure which is being applied for the certificate of occupancy, provided that all the fire safety requirements in the IRR of RA 9514 and Fire Safety Checklist are already installed and operational on the subject application for the Partial Certificate of Occupancy.

6.2.10 To minimize face-to-face interaction between an applicant and any entity of the government, cities and municipalities are encouraged to develop an automated/computerized  application system that allow online  application  for certificate  of occupancy,  further  streamlining the steps in Section 6.2.6.

6.2.11  Signatories.   The  Building  Official  shall  be  the  signatory  to  the Certificate of Occupancy. Technical staff members are, however, enjoined to sign the review or evaluation sheets of the technical documents  they  were  assigned  to  evaluate  for  reference  of  the Building Official.

6.2.12 Processing  Time. The different offices at the OSCP, functioning  as one unit, shall evaluate all simple applications for Certificate of Occupancy,   which  includes   applications   for  Certificate   of  Final Electrical Inspection (CFEI) and other related certificates, within a maximum   period   of  five  (5)  working   days  from  receipt   of  an application form with complete documentary requirements. The BFP shall process the Fire Safety Inspection Certificate (FSIC) within a maximum period of three (3) working days and shall abide by the manual of operations  that will be developed  in relation to the JMC and other supplemental  manuals that shall be separately  prepared by individual OSCPs. Applications with deficiencies shall be issued a comprehensive  correction sheet and/or notice of disapproval stating all deficiencies.

6.2.13  Assessment  of Fees. After final inspection by the OBO and receipt of the BFP status report, the OBO and the local BFP shall simultaneously  prepare  an Order  of Payment  for applications  that pass their requirements, specifying the fees that the applicant is obligated to pay in accordance with the provisions of the NBCP and the FCP. The two orders of payment shall be issued to the applicant at the same time. For this purpose, the local BFP shall assign a staff who shall be co-located  with the city/municipal  assessor within the OBO or designated OSCP.

6.2.14 The OBO  and the BFP may collect  a filing fee, in addition  to the NBCP  and  FCP  prescribed  fees/charges,   to  cover  for  the  cost incurred in evaluating applications for certificates of occupancy and FSIC, the setting of which shall follow the guidelines for setting fees and charges issued by the BLGF.

6.2.15   Payment   of  Fees.   The   OBO   and   the   local   BFP   shall   jointly implement a one-time payment of fees and charges related to applications  for certificates  of occupancy.  All related  fees shall be paid by the applicant in a designated cashiering area, ideally near or within the OBO or in the OSCP. As provided under Section 6.1.20 above, all cities and municipalities and the BFP are also encouraged to establish a system of online payment of fees and related charges and other electronic payment schemes.

6.2.16   The OBO shall issue the certificate of occupancy  together with the CFEI,   the  FSIC   and  other   related   certificates/clearances   upon payment of the required fees by the applicant.

6.2.17  Information  Sharing.  All  OBOS  are  enjoined  to  provide  all information on approved certificates of occupancy to concerned departments  or offices of the local government,  such as the BPLO and the local Assessor’s Office, as maybe deemed necessary and appropriate,  and to the BFP,  on a monthly  basis  as discussed  in Section 6.1.14. All cities and municipalities are thus encouraged to automate/computerize   their  databases  and  ensure  capacities  for data  and  information  sharing  among  concerned  departments  and offices at the local government and concerned national government agencies.
7.     Complementary Reforms
7.1 Complete  Checklists  of  Procedures  and  Requirements.  All  cities  and municipalities shall make available in conspicuous places in the Municipal or City Hall a complete checklist of procedures and requirements in securing building permits and certificates of occupancy and process flow chart for processing construction-related processes consistent with this JMC. Cities/municipalities  shall  ensure  that  said  checklists  may  also  be downloaded from their websites.

7.2 One-Stop  Shop  for  Construction-Related   Applications.  All  cities  and municipalities are encouraged to set up a One-stop Shop for Construction Permits (OSCP), preferably at the OBO that will provide frontline services to applicants  related  to building  permits  and  certificates  of occupancy application. Specifically, the OSCP shall have the following functions:
a.   Receive applications and documents for building permits and certificates of occupancy, either through on-line or physical submission;

b.   Coordinate   and   facilitate   the  conduct   of  technical   reviews   by  the concerned  departments  of cities/municipalities  (e.g. Zoning Office, Barangay Official) and the local BFP;

c.   Facilitate  the retrieval  of documentary  requirements  for building  permit and certificate of occupancy that will be part of the OSCP backroom operation, such as the tax declaration, current receipt of real property tax payments in coordination with concerned city/municipal departments;
d.  Implement   a  one-time   assessment   of  fees  and  charges  related  to applications   for   building   permits   and   certificates   of   occupancy   in coordination with the BFP, the Zoning Officer, the Assessor’s Office, the Treasurer’s Office and the OBO;

e.    Coordinate the conduct of joint inspections by the OBO, the Assessor’s Office and the BFP;

f.    Receive payment of all related fees and charges, either through on-line or physical payment, in coordination with the BFP and the OBO; and

g.    Release building permit or certificate of occupancy, either through on-line or physical release.
7.3 The physical layout of the OSCP is envisioned to allow a four-step process for both applications for building permit and certificates of occupancy. It shall include a backroom  operation with space provided for co-locating  agencies like the local BFP and departments/offices  of the city/municipality  concerned with  evaluation  of  construction-related  permits.  A  proposed  lay-out  of  the OSS is attached as Annex 11. The Local Chief Executives of cities and municipalities are expected to provide the necessary budgetary and logistical support for the setting up and operations of the OSCP.

7.4 Integration of LRA processed in the One-Stop Shop for Construction Permits. Cities/municipalities   are  encouraged   to  explore   with   Land   Registration Authority (LRA) the option of setting up LRA extension offices in the OSCP that will generate OCT/TCT as part of their backroom operation as a service to the public.

7.5 Automation/Computerization  of  Processes.  For  efficient  and  effective implementation  of this JMC, all concerned entities of the government – both national and local - are enjoined to automate/computerize  related processes in the issuance of building permits and certificates of occupancy which may include, among others, the following:

a.   Filing of application;
b.   Storage and retrieval of application forms and documents;
c.   Payment of fees and charges; and
d.   Issuance of permits and certificates;
e.   Database sharing among the OBO and other involved entities of the local government,   i.e.,  Local   Planning   and  Development   Office   (LPDO), Zoning  Office  (ZO),  Local  Treasurer’s  Office  (LTO),  Local  Assessor’s Office (LAO), Business Permit and Licensing Office (BPLO), and with the BFP.

7.6 Cities and municipalities, especially the highly urbanized cities, are enjoined to develop a web-based Building Permit Application System that would allow online application and processing of building permits and certificates of occupancy,  The online  application  shall be reviewed  and approved  by the DICT and then be integrated  in the National government  Portal. The LGUs may also avail of the Government Web Hosting Services from DICT.

7.7 Continuing Professional Education for Design Professionals (Enforcers/ BOs and Practitioners). The BOS are encouraged to utilize part of the 15% of the OBO fund, as mandated in the DPWH-DILG Joint Memorandum Circular No. 001  dated  July  4,  2013,  in  their  attendance  to  trainings/capacity  building programs related to the standards set in this JMC.
8.     Implementation of the Standards
8.1 All cities and municipalities are enjoined to implement the standards for the issuance of building permit and certificate of occupancy, as presented in Sections   6.1   and   6.2,   respectively.   They   are   encouraged   to   set   up procedures  that will further improve  these service standards  in partnership with national government agencies.

8.2 An Oversight  Committee  on Construction  Permit Reforms  shall be created with the Secretaries of the DPWH as Chair and the Secretary of the DILG as Vice-Chair. The committee shall have as members the heads of the following entities:  (1)  DICT;  (2)  the  BFP;  (3)  the  National  Competitiveness  Council under the Department of Trade and Industry; (4) Organization of Building Officials; (5) private sector representatives. This committee shall have the following  functions:  (1) oversee the implementation  of the standards  at the local government level; (2) approve the manual or guidebook for the implementation of the JMC as well as the training program designs to be conducted; (3) promote and coordinate the development of a web-based building  permit  application  system;  (4)  monitor  the  implementation  of  the JMC and implement sanctions to non-compliant local government units; and (5) undertake other measures necessary to enforce the standards set in the JMC.
8.3 A manual or guidebook for the implementation  of reforms shall be prepared to complement this Joint Memorandum Circular.
8.4 The DPWH in coordination with the DILG shall conduct a series of training programs for OBO and other concerned departments and offices of local governments as well as the BFP on the implementation of this Joint Memorandum   Circular   which   may   cover,   among   others,   the  following modules:
a.   Standards   for   the   Issuance   of   Building   Permit   and   Certificate   of Occupancy; and
b.   Preparation of Change Management Plan and Action Plan for each local government, OBO and local BFP office.
9.     Roles and Responsibilities of Oversight Agencies
9.1 Department of Public Works and Highways
a.   Chair  the  Oversight  Committee  on  Construction  Permit  Reforms  and provide Secretariat support;
b.  Issue,  as maybe  deemed  necessary,  supplementary  circulars  or department orders enjoining LGU Building Officials to implement the standards  set forth in this Joint Memorandum  Circular,  in coordination with the Local Chief Executives of cities and municipalities;
c.   In   collaboration   with   DILG-BLGD   and   BFP   prepare   a   manual   of operations for OBOs for the implementation of the JMC;
 
d. Provide capacity development  to concerned local government  units and OBOs,  in collaboration  with DILG, to ensure  the effective  and efficient implementation of this circular;
e.    Oversee, in close collaboration  with DILG and BFP, the implementation of the JMC;
f.    Provide guidelines to OBO personnel specifically on evaluating of plans and other building requirements; and
g.    Monitor  compliance   in  the  implementation   of  the  JMC  through  the National  Building  Code Development  Office  in coordination  with DILG- BLGD and BFP.
9.2 Department of the Interior and Local Government
a.   Act as Vice Chair  of the Oversight  Committee  on Construction  Permit Reforms;
b.   Issue, as maybe deemed necessary, supplementary circulars to LGUs in the implementation of the JMC;
c.   Determine mechanisms and/or strategies to encourage local government units, OBO and BFP to effect the implementation  of the standards  set forth in this Joint Memorandum Circular;
d.   In collaboration with DPWH and BFP:
d.1   Develop  manual  of  operations  for  LGUs/OBO  in  the operationalization  of this  JMC  or in streamlining  building  permit and certificate of occupancy;
d.2    Capacitate and assist LGUs in streamlining building permit and certificate   of   occupancy   using   the   guidelines   or   manual   of operations developed or thru capacity building programs;
d.3   Oversee, in close collaboration with DPWH and BFP, the implementation of the JMC;
d.4     Establish a monitoring  system on the compliance  of OBOs, local governments and BFP to the standards set under this JMC;
d.5   Monitor on a periodic and regular basis the extent/status of implementation of the standards set under this JMC.
e.   In collaboration with DICT:
e.1     Assist  in the development  of an automated  system  for Building
Permit and Certificate of Occupancy;
e.2   Provide  training  programs  to  LGUs  on  planning  and implementation of an automated Building Permit system; and
e.3     Capacitate     LGUs/OBO     in     the     computerization     of     Building
Permitting and Certificate of Occupancy.
9.3 Department of Information and Communications Technology
a.   Develop a web-based system software for online application, submission and processing of Building Permits available to interested LGUs that can be used  for automation  of Building  Permitting  to capable  and e-ready LGUs based on standards set;
b.   Provide training programs to LGUs on planning and implementation of an automated Building Permit system, in partnership with DILG through the BLGD and DPWH;
c.   Encourage   the  formulation   of  plans  using  the  Information   Systems
Strategic Plan (ISSP) process;

d.   Organize a pool of trainers from the partner agencies (DILG and DPWH), academe and interested providers who will be available to provide assistance to LGUs on the e-Building Permitting System;
e.   Capacitate  LGUs/OBOs  on  the  operation  and  maintenance  of  the  e- Building Permitting System; and
f.     Monitor the functionality, implementation and operations of the e-Building Permitting System, in coordination with DILG-BLGD and DPWH.
9.4 Bureau of Fire Protection
a.  Issue,  as maybe  deemed  necessary,  supplementary  circulars  or department orders enjoining the cooperation of Fire Marshalls and BFP personnel at the local level in the implementation of the JMC;
b.   Oversee, in close collaboration  with DILG and BFP, the implementation of the JMC;
c.   Monitor on a periodic and regular basis the extent of implementation  of the standards; and
d.   In  coordination  with  DICT,  automate  the  process  of  FSIC  and  FSEC
application.
9.5 Department of Trade and Industry (National Competitiveness Council)
a.   Coordinate technical assistance for the implementation  of the JMC from the development partners as part of its Ease of Doing Business activities; and
b.   Provide  technical  support  for  the  implementation  of  the  standards  in Quezon City, which is the city included in the International Finance Corporation’s Doing Business Report;
c.   Coordinate  with  business  groups  at  the  local  and  national  levels  to support the new guidelines in streamlining the processes for issuance of building permits and certificates of occupancy; and
d. Oversee, in close collaboration with DILG, DPWH, and BFP, the implementation of the JMC.
9.6 Local Government Units
a.   Provide both budgetary  and logistical support for the implementation  of the standards set in the JMC, including the setting up of a one-stop shop for construction-related  permits and clearances which includes the local BFP staff;
b.   Organize and lead the Joint Inspection Team and provide logistic support
(e.g. transportation and other incidental expenses);
c.   Allow the OBO and staff of cities and municipalities  to undergo capacity building in relation to the implementation of the service standards in processing  Building  Permits  and  Certificates  of  Occupancy  under  the JMC;
d.   Forge partnership with DILG and DICT for automating the processing of Building  Permits  and  Certificates  of  Occupancy,  which  may  include provision of logistics for training in the operationalization of the system;
e.   Take responsibility for the operations and maintenance of the e-Building Permitting  System  software  that may be set-up in connection  with this JMC; and

f.     Submit periodic status report on the city/municipality's  compliance to this JMC.
10. REFERENCES
10.1   Presidential  Decree  1096,  s. 1977  or the National  Building  Code  of the
Philippines (NBCP)
10.2   Republic Act 9514 or the Fire Code of the Philippines of 2008 (FCP)
10.3   Republic Act 9485 or the Anti-Red Tape Act of 2007 (ARTA)
10.4   Republic Act 7160 or the Local Government Code of 1991 (LGC)
10.5   Inaugural Speech of President Rodrigo Roa Duterte dated June 30, 2016
10.6   First  State  of  the  Nation  Address  (SONA)  of  President  Rodrigo  Roa
Duterte dated July 25, 2016
11. ANNEXES
Hereto attached are the following:
Annex 1: Unified Building Permit Application Form
Annex 2: Flow Chart for Processing Building Permits
Annex 3a: Standard Checklist for Evaluation of Building Permits
Annex 3b; Compliance Evaluation Sheet (both for Building and Occupancy) Annex 4: Unified Application Form for Certificates of Occupancy
Annex 5: Certificate of Completion Form
Annex 6: Flow Chart for Processing Certificates of Occupancy
Annex 7: Inspection Order (BFP)
Annex 8: After Inspection Report (BFP) Annex 9: Notice of Disapproval (BFP) Annex 10: Notice to Comply (BFP)
Annex 11: Compliance Evaluation Sheet (both for Building and Occupancy)
Annex 12: Proposed Lay-out of the One-stop Shop for Construction Permits
12. MONITORING AND REPORTING

DILG  Regional  Office  shall  submit  progress  and  period  report  in  the implementation   and  compliant   of  cities  and  municipalities   on  this  JMC  to Secretary of the Interior and Local Government thru the Undersecretary for Local Government.

13. SEPARABILITY CLAUSE

If any clause, sentence or provision of this Joint Memorandum  Circular shall be declared  invalid  or  unconstitutional  by  a  competent  court,  its  remaining  parts shall not be affected thereby.

14. REPEALING CLAUSE

All other orders, rules and regulations inconsistent or contrary to the provisions of this Joint Memorandum Circular are hereby repealed or modified accordingly.

15. EFFECTIVITY

This Joint Memorandum Circular shall take effect immediately.

16. APPROVING AUTHORITY

(SGD) CATALINO S. CUY
Officer-in-Charge Department of the Interior
and Local Government
(SGD) MARK A. VILLAR
Secretary Department of Public
Works and Highways


(SGD) ELISEO M. RIO, JR.
OIC-Secretary Department of Information
and Communications Technology
(SDG) RAMON M. LOPEZ
Secretary
Department of Trade and Industry


(SGD) GUILLERMO M. LUZ
  Private Sector Co-Chairman
National Competitiveness Council

17. FEEDBACK

For  related  queries  kindly  contact  the  Bureau  of  Local  Government   Development   – Department  of the Interior and Local Government  at telephone  number (02) 925-0356  or at Telefax number (02) 927-7852 and/or email at  pamd.blgd@gmail.com.
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