Project permits

Today we will share with you, from our perspective as administrators with experience in all stages of a project, an important issue at the time of executing it: permits with government entities and our recommendation to process them.

In general terms, the main permits that are required in a construction project in Panama must be processed with the municipality and the fire department of the corresponding area. The order that we recommend following, considering that it is the most appropriate and organized way to comply with what the law requires, would be the following:

a. Submit and approve a draft plan;

b. Submit and approve a construction plan that includes all the designs of the specialties, such as architecture, structure, electromechanics, signaling, alarm, among others;

c. Request an appraisal of the cost for the project, according to approved plans and pay the construction tax, called Construction Permit;

d. During the project, other types of permits are requested, such as the sidewalk permit (if you build adjacent and very incident to a pedestrian crossing area), the crane permit, the forklift permit, etc. and

e. For the final stages of the project, the occupancy permit must be requested, with which the building can operate for the purpose it was intended for.

Basically, the permits do not vary by the type of project since, regardless of the activity, the same procedure listed must be carried out. What is important to mention is that building in a specific area requires the land use or classification that said area has. For example, you cannot build an office building in a residential area. Another variation occurs in the case of permits that have to do with the impact that the project will have on the environment. For this, it is required that every project have an Environmental Impact Study that includes the different categories.

It is extremely important that the client have all the legal documentation of the company that owns the project and the land on which said project will be built. The client must also be financially prepared to face the different initial costs that this stage entails.

Another valuable recommendation is that the architect and the client validate all the information and the scope of their project so that this is reflected in the plans and can thus confirm land use, previous studies of the area (environmental impact study, hydrological, etc.) as well as the preparation of all the plans that will be submitted in the draft (general concept of the project).

From our experience and perspective as project management, we hold follow-up meetings, even weekly, with the architects (for any change) or the person named as processor, who is in charge of the follow-up between the different departments of the municipality and the fire department. In addition, when a signature, documentation issuance by the project owner or any tax payment is required, we take care of processing it, to meet the requirements on time and as requested by each entity.

To conclude, we know that a delayed or undone procedure brings with it multiple actions that can affect the project, which is why it is imperative to always keep these processes in mind and be prepared for them to avoid delays or fines to the project.