Existing digital systems in state institutions for tracking documents frequently struggle to display recent updates to files.
Escarlin Well
The Real Estate Agent
PUNTA CANA. -A growing issue in the Dominican Republic’s eastern construction sector is the continuous delays in issuing permits for real estate projects.
This problem has unsettled construction firms, arguing that their project’s progress is hampered by slow authorizations.
As per Morada developer director Daniel Cordero, these delays impede area progress and could tarnish its image due to repeated project delivery delays.
He explained that permit delays primarily cause this issue from diverse state institutions.
In an El Inmobiliario interview, he indicated the prime culprits for these delays are the Ministries of Tourism, Environment and Natural Resources, and Housing, Habitat, and Buildings.
Digital platforms’ desynchronization and frequent personnel changes worsen the delays, Cordero explains.
His point is, these changes lead to confusion and a lack of coordination among institutions.
The problem escalates when an institution upgrades its management system or digital platform and others fail to keep pace, complicating file management.
Daniel and Arnold Cordero. (External source).
Project Delivery Delays
Daniel admits an average delay of about a year on his projects due to permit issues, with the most significant impact seen in 25% of older projects.
On the flip side, permits can be obtained within two to three months under normal circumstances with no setbacks.
Government officials attribute the delays to overload, but he argues that the real issue is the staff shortage to manage incoming requests.
Other Hurdles and Suggested Solutions
Morada’s deputy director Arnold Cordero expresses another severe repercussion from permit delays: failure to legally transfer properties to buyers, leading to a ripple of delays affecting developers and buyers alike.
He also highlighted the need to modernize processes in government institutions where existing procedures typically involve printed documents and manual review.
Cordero noted that many state institutions have digital document upload and track systems, but these frequently fail to display the most recent file updates.
In some instances, outdated versions are reviewed instead of the newer submitted revisions, leading to confusion and further permit approval delays.