Understanding building fees and permits

There have been numerous concerns over the building fees paid by a developer for building and occupation permits and for inspection of a building operation. Some developers have ended up paying less or more than the stipulated fees.  
But what are these fees for? 
Before a construction project takes off, the developer is required to get permits giving it a greenlight. 
These permits show that quality control inspections have been carried out and the project meets the industry standards. 
To secure the permits, the project must first present a detailed and comprehensive record of intent on how safety will be delivered throughout every stage of the project. 

Regulation
According to regulation’s, section 34(1,2) of the Building Control Act, 2013, a person shall not carry out a building operation without a valid building permit issued by a building committee and any violation contravenes a fine not exceeding Shs1,000,000 or imprisonment not exceeding two years or both. 
Without the appropriate permit, the all construction, building or renovations must stop immediately.  Additional consequences may apply if the project possesses items that are in violation of the regulations.  The local authorities may demolish anything that infringes on these ordinances. It is possible that a neighbour may call an inspector to stop the construction as well as anyone else that observes the job in progress.
The fees structure was revised in 2020 by the Minister of Works and Transport Gen. Edward Katumba Wamala, under the Building Control (Fees) Regulations, 2020.

Classification
These fees are determined in three ways:
Using square meters and location of the building (city, municipality, town council and district). 
Classification of the building that is (Class A, B and C). 
Class A: Complex structures including public buildings, multi storeyed buildings more than 12 metres high, building complexes (mixture of all) such as schools, hospitals, shopping malls, buildings of high social impact or to be located in sensitive ecosystem among others.
Class B: Residential or commercial buildings with floor area of above 30 square metres and up to 12 metres high, boundary wall built of bricks, concrete or other solid material of permanent nature.
Class C: Minor and temporary buildings with floor area of less than 30 square metres such as kiosks, stalls and shacks of simple structural form.

Fees
To secure a building permit for a class A building in a city, one is required to pay Shs2,200 per square metre of floor area, Shs1,700 in municipalities, Shs1,300 for town councils and Shs1,100 at district level.  
A class B building permit costs Shs1,700 per square metre of floor area in cities, Shs1,300 in municipalities, Shs1,000 in town councils and Shs 950 at district level.
Class C buildings have a flat rate of Shs500,000 in cities, Shs300,000 in municipalities, Shs200,000 in town councils and Shs30,000 at district level.

After getting the permit the developer is expected to begin construction within one year which should be completed within five years.  
However, if due to unforeseen circumstances, the developer is unable to complete the building with the specified time, they can apply to the building committee for an extension. 
For minor building operations, construction is expected to begin within six months although an extension another six months can be granted.

Inspection fees
Inspection fees are paid at the beginning, during and after construction of a building. Pre-construction fees are paid together with building permit fees and they are for analysing building plans and inspecting site for due diligence to ensure that the documents submitted are authentic.
During construction, the building committee must inspect the construction to ensure that the developer is complying with the approved plans and regulations. Similarly, these fees are determined according to square metres, location and classification of the building.

Inspection fees for class A and B buildings in cities are Shs1,000 per square metre, Shs750 in municipalities, Shs500 in town councils and Shs300 at district level. These fees are paid annually for the duration of the building permit.
The after-construction inspection fees are paid with occupation permit fees.

Occupation permits
Under section 44 of the Building Control Act, 2013, upon completion of a building, the owner shall notify the building committee of the practical completion of the building in accordance with the approved plans and regulation and apply for an occupation permit.
The building committee shall within 14 days examine the building and may if satisfied that the building erected conforms to the approved plans and regulations, issue an occupation permit. 
If the committee is unsatisfied about any aspect of the project, it has a right to withhold the occupation permit with reasons in writing.  Occupation permit fees are also determined according to square metres, location and classification of the building.

An occupation permit for Class A and B building in cities goes for Shs1,200 paid per square metre, Shs950 in municipalities Shs700 in town councils and Shs500 at district level. For Class C buildings, a flat rate of Shs30,000 is charged across the cities, municipalities, town councils and districts.
It is against the law to occupy a building without an occupation permit and if caught, one is liable on conviction to a fine not exceeding Shs480,000. 
However, the building committee may issue an occupation permit in respect of a partially completed building where it determines that the building is safe and adequate for human habitation. 
Such a permit shall only be valid for a period not exceeding two years and may be renewed upon application to the building committee.

How do you pay?
All application and permit fees shall be paid by way of electronic transfer or direct deposit into the bank account of the relevant local government as stipulated by Regulation 38 of the Building Control Regulations, 2020.

The application fees are paid on or before the day an application is submitted to the Building Committee while the permit fees are paid before the permit is issued. 

All these fees are nonrefundable. 

Herbert Zziwa, is the manager communications at National Building Review Board (NBRB).