Obtain a soil test report
Agency: Private Laboratory
According to Article H in Chapter 10 of the Reglamento Colombiano de Construccion Sismo Resistente NSR-10 20, it is a requirement to obtain a Soil Test Report.
Time and cost: 25 days, USD 1,200
Obtain a topographical plan
Agency: Private Engineer
Based on Decree 564/2006-Art.19 and on Decision 0462/2017-Art. 2.1.a), a topographical survey is needed.
Time and cost: 6 days, USD 700
File for and obtain construction license (licencia de construcción)
Agency: Curaduría Urbana (Urban Curator)
The latest update for this procedure is specified by Article 2.2.6.6.8.3 of Decree N. 1077 (2015).
According to the regulations, any license application must be accompanied by the following documents:
- Certificate of good standing (copy). The certificate’s date of issuance cannot be older than one month before the date of application.
- Unique national format of application for a license (completed). This format was adopted by Resolution 0984 2005 of the Ministry of Environment, Housing, and Territorial Development
- When the applicant for a license is a corporation, the existence and representation must be certified through the proper legal document. The certificate’s date of issuance cannot be older than one month before the date of application.
- Power of attorney, when needed
- Payment receipt for real property tax of the plot for the past 5 years, stating the plot’s alphanumeric nomenclature or its identification. Whenever there is a payment agreement, the interested party will have to bring a certificate of fulfillment, issued by the Secretariat of Finance.
- Plot location and identification plan
- List of the adjoining plots (the real property contiguous to the project)
- Manifestation whether the project under consideration will be assigned as a social interest dwelling. Such evidence must be recorded within the act that resolves the license.
Article 21 of Decree 564 also establishes these additional documents for construction license applications:
- Copy of (a) the report of the structural calculations and the structural designs; and (b) the reports of other nonstructural designs and of geotechnical and soil studies that determine the stability of the work, elaborated according to the norms in force at the moment of application, duly signed and labeled by professionals authorized for such purpose. These persons will be legally responsible for the designs and the information in them.
- Heliographic and magnetic copy of the architectural project, elaborated according to the architectural and urban planning norms in force at the moment of application, duly signed and labeled by a registered architect who will be legally responsible for the design and the information contained therein.
- If the application is presented to a different authority than the one that issued the original license, the interested party will present the previous licenses.
Decree 1272 (2009) introduces risk-based categories to determined the time to complete this process. The case study analyzed by Doing Business will be Category III (Medium complex between 500 sq. m. and 2,000 sq. m.) and should be approved by the Curator within 30 business days ( 42 calendar days). However, if it requests additional documentation, such requests suspend the 42-day term until the requesting party presents the additional documents. In addition to the suspension of the terms explained above, the urban curator may extend the original 42-day term – only if correctly justified by written resolution – up to 90 calendar days. If process has no delays, the “silent is consent” rule will apply and the license will be issued within 42 calendar days.
Article 118 of Decree No. 1469 (2010) specifies that licenses may not be granted by the urban curator without the previous payment of any taxes caused by the license procedure. BuildCo must also pay the urban delimitation and occupation tax (impuesto de delineación urbana y ocupación) at the local bank. The fees and taxes must be deposited at a designated account held by the district authorities at any bank in Bogotá.
Direct costs are those related to materials, labor, and ancillary elements such as tools and so forth. Indirect costs relate to fees charged by the architects and the engineers and to ancillary payments related to such honoraria. It does not include costs for taxes, land acquisition, project financing, or utility surcharges.
According to Decrees 1272 of 2009 and 1469 of 2010, in cities with more than 500,000 inhabitants, the presentation of documents by a license applicant which contain information available through virtual or remote inquiry is no longer necessary. Urban curators must check by these means the information at the time of filing of the application. This is why the following documents are no longer required to be obtained by the entrepreneur:
- Legal representation certificate (Certificado de Exsitencia y Representación Legal)
- Certificate of good standing (Certificado de libertad y tradición)
- Proof of municipal tax payment (Paz y salvo de impuesto predial)
Time and cost: 42 days, COP 13,296,014
Pay tax on urban delineation (impuesto de delineación urbana) at the bank
Agency: Commercial Bank
This is a one-time payment. The fees and taxes must be deposited at a designated account held by the district authorities at any bank in Bogota. This tax is payable once the license has been approved, and it is a precondition for the issuance of the approved license. Urban delimitation and occupation tax for the warehouse is calculated at a rate of 2.6% over the minimum building direct completion costs. Among the documents required by the Bogota Tax Authority to estimate the tax to be paid by BuildCo are the approved construction license or its initial filing. Therefore, payment of the urban delineation tax should be completed after the approval of the construction license. If at the end of the construction the actual costs surpass the estimated ones, BuildCo must pay an additional 3% of the difference.
Time and cost: 1 day, COP 27,194,911
Receive random inspection
Agency: Municipality
Mandatory inspections during construction are based on Art. 2.2.6.1.4.11 of Decree 1077 of 2015 of the Ministry of Environment, Housing and Territorial Development to describe the details of the procedure, since it is mandatory by law.
Time and cost: 1 day, no charge
Request water and sewage connection approval from EAAB and receive water and sewage inspection
Agency: Empresa de Acueducto y Alcantarillado de Bogotá (EAAB)
EAAB undertakes supervision, control, and evaluation of construction according to regulations. It takes place during the whole construction process.
The water connection approval from EAAB only happens after the inspection is conducted, which usually takes 3 to 4 business days. From the time the inspection takes place, it takes another 6 days for the approval to be processed.
Time and cost: 4 days, no charge
Receive water and sewage connection approval from EAAB
Agency: Empresa de Acueducto y Alcantarillado de Bogotá (EAAB)
The owner of the plot (or a representative) must request a water connection by providing Bogotá’s public water utility (Empresa de Acueducto y Alcantarillado de Bogotá, EAAB) with copies of the following documents:
- Nomenclature certificate (boletín de nomenclatura) of the plot where the warehouse will be located
- Certificate of free transferability of the plot
- Authorization of the plot owner for the installation service request, if the owner is not requesting the service directly
- Description of the warehouse purpose (whether commercial or industrial)
EAAB has 21 points of service at the different service centers that the local government has established throughout Bogotá.
Time and cost: 6 days, COP 1,845,300
Obtain water and sewage connection from EAAB
Agency: Empresa de Acueducto y Alcantarillado de Bogotá (EAAB)
Time and cost: 10 days, no charge
Receive inspection from authorized contractor
Agency: Codensa S.A. ESP
No later than 20 days after requesting the connection, Codensa must send a service agent that will review the construction.
Time and cost: 1 day, no charge
Request and awaits final inspection from the Mayor’s Office
Agency: Mayor’s Office (Alcaldía Distrital)
Through its agents, the Mayor’s Office (Alcaldía Distrital) is the entity in charge of monitoring and controlling construction projects in Bogotá. The inspections are carried out to confirm that the construction has been completed according to the construction license. According to Law 1796 (2016)-Art. 6, an independent technical supervisor to certify under oath that the works are in accordance with the approved plans.
Time and cost: 25 days, no charge
Obtain occupancy permit
Agency: Mayor’s Office (Alcaldía Distrital)
According to Decree 1469 (2010) and Decree 1077 (2015) of the Ministry of Environment, Housing and Territorial Development-Art. 2.2.6.1.4.1, BuildCo must obtain an occupancy permit. Once the approved project has been completed, the owner or builder who is responsible for the works requests the occupancy permit from the authority responsible for executing the urban control and subsequent works.
Time and cost: 10 days, no charge
Obtain a public deed from the notary
Agency: Public Notary
In order to register the warehouse with the public registry so that it can be used as collateral or be sold, it is necessary to submit a public deed prepared by a public notary. This public deed is referred to as “denuncia de la construcción”.
Once the building is completed, it is necessary to formalize the public deeds of “Declaration of the Building” at a Public Notary. The public deeds must be registered at the Public Office of Registration after having been updated by a notary.
Time and cost: 1 day, COP 2,978,415
Register building at Real Estate Registry
Agency: Public Office of Registration
Registration of the building is required for it to be registered as collateral. Once the building is completed, it is necessary to formalize the public deeds of “Declaration of the Building” at a Public Notary in order to Register the building. Time for registration at the Registry can vary from 1 to 2 weeks, depending on the location in the city. The registry where the warehouse is located takes on average one week.
Time and cost: 7 days, COP 14,242,551
