Obtain a soil test study
Agency: Instituto Nicaragüense de Estudios Territoriales
According to Article 27 (f) of Reglamento de Permiso de construcción para el Área del Municipio de Managua – Reg No 2996-R/F 858897, a soil study is a requirement by law. This is to ensure that the foundation of the building is solid since Nicaragua is a country with seismic activity. The engineer must understand the suitability of the soil for the proposed construction work. Soil test allows to build a solid foundation and avoid structures to be damaged or collapsed or leaned.
Time and cost: 18 days, USD 2,200
Obtain a topographical survey of the land
Agency: Private Engineer
Build Co. needs to obtain the topographical survey for the site plan design.
Time and cost: 11 days, USD 700
Request and obtain consultations with Municipality of Managua (Alcaldía de Managua – ALMA) about the urban plans
Agency: Municipality of Managua (Alcaldía de Managua – ALMA)
It is common practice to have an initial consultation with the Technical Urban Planning Committee (Comité Técnico Urbanístico) to verify all conditions before submitting any document. The board will open a file for the building permit if it is considered feasible. If BuildCo does not agree with the decision, an appeal may be filed with the Technical Urban Planning Committee (Comité Técnico Urbanístico).
Time and cost: 7 days, no charge
Request and obtain the land use certificate (constancia de uso de suelo) from the Municipality of Managua
Agency: Municipality of Managua (Alcaldía de Managua – ALMA)
Once the file and the decision are obtained, a record number is created (to be used for the following procedures until the project is approved). The documents to be submitted at this stage are an application form, a copy of the location map, a site map, and the cadastral number of the property.
Time and cost: 30 days, NIO 500
Request feasibility analysis from ENACAL
Agency: ENACAL
Upon the reception of the certificate for land use, a feasibility analysis from ENACAL is required to determine whether the site can be connected to water and sewerage services. If no sewage system exists, an alternative would be a treatment system approved by the MARENA (Environmental Impact Assessment, Ministry of the Environment and Natural Resources).
Measurement of pressures at each coupling point – NIO 2,000
Gauging sewage in each probably discharge point: NIO 3,000
Total = 5,000
The costs are based on Resolution No. CD-RT-028-2008 published in Official Gazette No. 212 of November 4, 2008
The documents to be submitted are an application form, the land use certificate, a project description (physical modulation and activities), a plot plan on a scale of 1:10,000, the water demand and use statement, and specifications of the inflow rate and the sewage characteristics.
The ENACAL approval certificate covers the project conceptualization and indicates that the project is compliant with the standards and regulations. The required documents are a project identification title page, topographic maps, an urban development plan, an existing infrastructure plan, design drawings, detail drawings, and a descriptive report.
Time and cost: 15 days, NIO 5,000
Request feasibility analysis from DISNORTE-DISSUR
Agency: DISNORTE-DISSUR
In parallel, regarding electrical connection, a feasibility analysis from DISNORTE-DISSUR is required to determine whether the site can be connected to the electrical network. The following documents are needed: the (original) location map, a specification of the electrical capacity to be installed, and the estimated start date of construction work.
Moreover, DISNORTE-DISSUR provides a review, design approval, and authorization, and issues a decision stating that the proposed project conforms with the Manual of Norms of Construction of Distribution (Manual de Normas de Construcción de Distribución), the electrical power supply company. The following documents are required:
- Design license
- Electrical specifications
- Stack-out sheet
- List of materials
- Project drawings
- Photocopy of the electrical power and light contract
- Photocopy of the feasibility certificate
Time and cost: 7 days, no charge
Request and obtain preliminary design approval from the Municipality of Managua
Agency: Municipality of Managua (Alcaldía de Managua – ALMA)
BuildCo must obtain an approval stating that the proposed preliminary designs conform to the Regulating Plan of the Municipality of Managua and to the land-use certificate.
The required documents are the land-use certificate; a notarized deed certifying ownership of the land; the feasibility analyses by the Nicaraguan Institute of Energy (INE) and the Nicaraguan Company of Water and Sewage (ENACAL); a local fault study endorsed by the Nicaraguan Institute of Territorial Studies INETER, if required by the land use certificate; and two sets of maps, each consisting of a location map on a scale of 1:10,000 (a site map on a scale of 1:10,000, 1:500, or 1:200 and a contour map); an architectural layout; exterior work drawings; and area frames.
Time and cost: 25 days, NIO 1,000
Request and obtain project approval at the Municipality of Managua
Agency: Municipality of Managua (Alcaldía de Managua – ALMA)
A project approval is a decision stating that the project conforms to the Regulating Plan of the Municipality of Managua. The fee for obtaining the approval is NIO 3.00 per sq. m., and payment can be made either in cash or in two equal installments. The required documents are three sets of plans and the approved preliminary designs.
The following documents are required:
- Letter of request for service
- Public deed duly registered
- Preliminary Design approved
- Two sets of plans
- Memory calculation of the drainage system
- Detailed Project Budget
- Detailed Project Programming
- Technical approval issued by ENACAL and UNION FENOSA
Time and cost: 30 days, NIO 3,902
Request and obtain approval from Dirección General de Bomberos (DGB)
Agency: Dirección General de Bomberos (DGB)
Upon the approval from the municipality, BuildCo. can engage in the electric part of the construction. is granted.Indoor electrical layout drawings must be reviewed and be found to conform to all fire protection standards. For construction projects with commercial and service purposes, the fee is US$ 0.50 per sq. m. (15-05-13 La Gaceta-Diario Oficial)
The required documents are electrical installation layouts, fire protection system plans, safety measures, or plans provided for the construction work. Because the national firefighting system (SINACOI) no longer exists, the institution in charge of this procedure is now Dirección General de Bomberos (DGB).
Time and cost: 15 days, USD 650
Request and obtain building permit from the Municipality of Managua
Agency: Municipality of Managua (Alcaldía de Managua – ALMA), One-Stop Shop
The building permit authorizes the start of construction.
The cost of a building permit includes a tax of 1.1% of the total market value of the construction. This tax must be paid in full at the start of construction work.
Buildings are also subject to an inspection fee, as follows:
- NIO 2.00 per sq. m. for areas from 101 to 200 sq. m.
- NIO 3.00 per sq. m. for areas from 201 to 1,000 sq. m.
- NIO 4.00 per sq. m. for areas from 1,001 sq m and above
(in the case considered here, NIO 4.00 x 1,300.6 = NIO 5202.4).
Therefore, 1.1%* warehouse value + 4 * sq m. = NIO 39,593.4
The required documents are a project approval, an annual real estate tax (solvencia de bienes inmuebles), the registration number with ALMA (the business registration), a tax clearance certificate (solvencia municipal) for the project owner and builder, a builder’s license granted by the Ministry of Transportation and Infrastructure (Ministerio de Transporte e Infraestructura, MTI), the builder’s signature on the construction plans, bank guarantees, and official payment receipts. The building permit carries the same weight as a public deed.
Inspections may occur during construction. However, these are rare due to a shortage of inspectors. Even if an inspection is carried out, the inspector would simply verify that the building permit is valid.
Time and cost: 20 days, NIO 39,593
Request fire inspection
Agency: Dirección General de Bomberos (DGB)
The cost of a fire and electricity inspection is included in the inspection fee, which is paid at the Dirección General de Bomberos (DGB). A site visit may be scheduled, but it is not a rigid procedure.
Time and cost: 1 day, no charge
Request and connect to water and sewage services
Agency: ENACAL (Empresa Nicaraguense de Acueductos y Alcantarillados), Municipality of Managua (Alcaldía de Managua – ALMA)
According to Resolution No. CD-RT-028-2008 published in Official Gazette No. 212 of November 4, 2008 (“Norma para el Desarrollo de Proyectos de Agua Potable y Alcantarillado Sanitario de Centros Residenciales, Industriales y Comerciales”) the cost associated to review and approval of designs of industrial developments is NIO 17,000. Moreover,the installation cost is approximately NIO 3000. This cost can be higher or lower depending on a possible rupture of pipelines.
Time and cost: 45 days, NIO 20,000
Receive fire inspection
Agency: Dirección General de Bomberos (DGB)
Fire inspection is conducted in parallel with water and sewage request.
Time and cost: 1 day, no charge
Receive inspection from the Municipality of Managua
Agency: Municipality of Managua (Alcaldía de Managua – ALMA)
The municipal inspection is a random inspection that may occur at least once during the 30-week construction period. Thus, no request is needed. An inspection report is drafted and provided to BuildCo. The construction work is not stopped during the inspection, and no costs are associated with this procedure.
Time and cost: 1 day, no charge
Receive inspection from the Ministry of Labor
Agency: Ministry of Labor
Inspection by the Ministry of Labor is a random inspection that may occur at least once during the 30-week construction period. Thus, no request is needed. An inspection report is drafted and provided to the company. The construction work is not stopped during the inspection, and no costs are associated with this procedure.
Time and cost: 1 day, no charge
Receive inspection from the General Directorate of Hygiene and Occupational Safety of Ministry of Labor
Agency: General Directorate of Hygiene and Occupational Safety of Ministry of Labor
Inspection from the General Directorate of Hygiene and Occupational Safety of Ministry of Labor is a random inspection that may occur at least once during the 30-week construction period. Thus, no request is needed. An inspection report is drafted and provided to the company. The construction is not stopped during the inspection, and no costs are associated with this procedure.
Time and cost: 1 day, no charge
Receive inspection from the National Social Security Institute
Agency: National Social Security Institute
Inspection by the National Social Security Institute is a random inspection that may occur at least once during the 30-week construction period. Thus, no request is needed. An inspection report is drafted and provided to the company. The construction work is not stopped during the inspection, and no costs are associated with this procedure.
Time and cost: 1 day, no charge
Register the building with the Real Estate Appraisal Office
Agency: Real Estate Appraisal Office (Avalúo de Bienes Inmuebles), Municipality of Managua (Alcaldía de Managua – ALMA)
As a final step, BuildCo. register the new warehouse in the Real Estate Agency.
Time and cost: 15 days, no charge
