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2016/SOM1/EC/WKSP2/013 Session 4.3

Dealing with Permits in Hong Kong, China

Submitted by: Hong Kong, China

Ease of Doing Business Workshop: One-Stop Shops to Improve the Business Environment

Lima, Peru 26-27 February 2016

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One-Stop Shops

Dealing with Permitsin Hong Kong

Mr. Michael HP LI MSc(Fire and Safety Engineering), MRICS, MHKIS

Chief Building Surveyor, Buildings Department Hong Kong, China

Background of One Stop Centre

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“Be the Smart Regulator” Programme

• Launched by Hong Kong, China in February 2007

• To enhance Hong Kong’s business licensing processes and businessenvironment.

• Jointly coordinated by:– the Efficiency Unit under the Chief Secretary’s Office; and– the Business Facilitation Division of the Economic Analysis and Business

Facilitation Unit (EABFU) under the Financial Secretary’s Office

• 30 bureaux and departments joined the Programme– take forward improvement measures to streamline licensing processes– reduce compliance costs to business.– improve the “Customer friendliness”, “Efficiency” and “Transparency” of the

their business licensing services. 3

Working Group for Re-engineering and Streamlining Dealing with Construction Permits

• Established in 2007

• Comprises EABFU, Development Bureau & 6 departments:– Buildings Department– Lands Department– Fire Services Department– Drainage Services Department– Highways Department– Water Supplies Department

• Improvements achieved mainly through– streamlining workflow– eliminating unnecessary procedures– improvement in processing efficiency

• In 2008, HK’s ranking for the indicator of ‘Dealing withConstruction Permits’ was up from 60th in the preceding year to20th

2008

Rank: 20th

Procedures: 15

Time: 119 days

Cost: 18.7%

2007

Rank: 60th

Procedures: 23

Time: 155 days

Cost: 21.3%

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One Stop Centre

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One Stop Centre (OSC)

• Set up in 2008

• Administered by the Efficiency Unit

• to provide a centralized office for receiving first submissions of plans and related applications as well as coordinating joint inspections for two-storeywarehouses

• From 2009-2014, HK’s ranking for the indicator of ‘Dealing with Construction Permits’ was up to the top among all examined economies

• In 2015, HK’s ranking was 7th

2009

Rank: 1st

Procedures: 7

Time: 67 days

Cost: 18.7%

2008

Rank: 20th

Procedures: 15

Time: 119 days

Cost: 18.7%

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Dealing with Permits by OSC

Pre-construction stage

• OSC receives applications for:

– approval of plans, consent for commencement of works

– excavation permit

– technical audit for water supply connection works andissue of water supply certificate

• Refer to relevant departments for process under streamlinedprocedures

• OSC to monitor progress of each application7

Dealing with Permits by OSC

Post-construction stage

• Upon completion of construction work, all relevantapplications/notifications for issuance of approvals andpermits together with applications for utility services to besubmitted to OSC in one go

• OSC refers the applications to relevant parties for processing

• A joint inspection by all departments organized by OSC onrequest of applicant

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Recent Reforms of OSC

1. Highways Department• Excavation Permit Management System (XPMS) launched for

processing Excavation Permits through internet.• Processing time for excavation permit reduced from 20 days to 5

days.

2. Fire Services Department• Further streamlined the process of handling applications for

certificates of fire service installations.• Processing time further shortened from 19 days to 17 days.

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3. Lands Department• Streamlined the related procedures.• Time for issuing certificates of compliance for two-storey

warehouses reduced from 21 days to 19 days.

4. Water Supplies Department • Application process of water supply applications streamlined• Water supply could be made available on the same day of the

joint and final inspection.

… Recent Reforms

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5. Application / Notification for Utilities

• Government and some utility service providers collaborated tolaunch a Composite Form.

• Applicant can submit applications for electricity andtelecommunication services and notification to Water SuppliesDepartment for completion of plumbing works in one go via thecomposite form to OSC.

6. Buildings Department• Buildings Department dealing with construction permits for

private developments, has undertaken various reforms in recentyears to streamline the vetting procedures and hence reduce thetotal processing time.

… Recent Reforms

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Dealing with Construction Permits

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Buildings Department Vision

• To make the built environment safe and healthy for our community

Mission

• To set and enforce safety, health and environmental standards for the planning, design and construction of private buildings

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Building Control• Authorized Persons (Architects, Surveyors, Engineers),

Structural Engineers and Geotechnical Engineers registered under the Buildings Ordinance coordinate, design and supervise the building works

• Registered contractors carry out the building works

• Prior approval and consent obtained from BD before commencement of building works

• No new building shall be occupied before an occupation permit is issued

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Construction Permits in 2015

Around 19,000* nos. of plan submissions processed

Around 10,000* nos. of consent for commencement of works granted

*including all types of plan submissions, alteration and addition works re-submissions, and amendment submissions

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Centralized PlanProcessing

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Centralized Plan Processing

• Implemented since 1976

• One stop shop service to facilitate AP to obtain comments from all relevant government departments

• To collate the comments from the parties concerned within statutory time limits

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Centralized Plan Processing

Fire Services Dept.

Lands Dept.

Drainage Services Dept.

Planning Dept. Highways Dept.

Geotechnical Engineering Office

Transport Dept.

Environmental Protection Dept.

Others depts or agencies as necessary

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Other Examples of Centralized Processing

Fire Services Department Buildings Department

Restaurant License

Applications

Food, Environment and Hygiene Department

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Curtailed Check System

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Plan Checking by BD

• Check fundamental issues only

• Audit checking

AP/RSE/RGE’s Certification

• AP/RSE/RGE to certify compliance with the provisions of the Buildings Ordinance

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Statutory Periods

60 daysApproval for first submissions and resubmissions constituting a major

revision

30 days Approval for resubmissions and amendments prior to consent

28 days Consent to commence works

14 days Occupation Permit

Approval deemed to be given unlessrefusal notified by BD to AP within thestatutory periods

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Streamlined Procedures

• Concurrent processing for approval of plan and consent (30/60 days) 45 days for two-storey warehouses

meeting certain criteria (since 2008)

• Fast track applications (30 Days)

• Priority status for special projects

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Site Auditing for Building Works

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Site Auditing

• Purpose

• To bring to light structural safety-related and quality-related irregularities or procedures and practices

• Strategy

• Focus on compliance with the requirements of the Buildings Ordinance and regulations

• Surprise checks

• Performance-based approach to frequency of checks

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Reforms Implemented by BD

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Building Control for Two-storey Warehouses

Reforms implemented in Feb 2016

• Scheduled inspections

• Conduct Inspection of foundation bearing stratum within 1 working day upon receipt of notification

• Combined inspections - quality inspection to structural elements has been combined with the comprehensive inspection at superstructure construction stage

• Total no. of scheduled inspections reduced from 3 to 2

• Unscheduled inspections

• No further unscheduled audit subject to satisfactory results of initial auditing for foundation and/or superstructure works

• Total no. of unscheduled inspections reduced from 2 to 127

Dialogues with Stakeholders

• Regular discussion forums with stakeholders

• Pre-submission enquiries

• Practice Notes for AP, RSE & RGE

• Circular letters on new issues or practices

• Working Groups with stakeholders to review practices from time to time, e.g. a benchmarking exercise on the quality of plan submission to facilitate approval

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Thank You

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