In the Philippines, the regulation of infrastructure and private construction is governed primarily by Presidential Decree No. 1096, otherwise known as the National Building Code of the Philippines (NBCP). Under this law, a building permit is not merely a bureaucratic formality; it is a mandatory legal requirement designed to ensure public safety, health, and environmental compliance.

Engaging in construction, alteration, or renovation without a valid permit exposes the owner, the contractor, and the professionals involved to significant administrative, civil, and criminal liabilities.

1. Statutory Requirement: Section 301

Section 301 of the NBCP explicitly states:

"No person, firm or corporation, including any agency or instrumentality of the government shall erect, construct, alter, repair, move, convert or demolish any building or structure or cause the same to be done without first obtaining a building permit therefor from the Office of the Building Official assigned in the place where the subject building is located or the building work is to be done."

By law, the "Building Official" (usually under the Local Government Unit or LGU) is the primary authority tasked with enforcement.

2. Administrative Liability and Fines

The most immediate consequence of unpermitted work is administrative intervention. The Building Official has the authority to:

Issue a Cease and Desist Order (CDO): Work must stop immediately. If construction continues despite the order, the authorities may seek police assistance to vacate the site.
Administrative Fines: The NBCP provides for fines for various violations. While the base fines in the original decree are relatively low, they are often updated by Department Orders from the Department of Public Works and Highways (DPWH) and supplemented by local ordinances.
Assessment of Surcharges: Under the Implementing Rules and Regulations (IRR), unpermitted construction may be subject to a surcharge of up to 100% of the building permit fees as a penalty, provided the building meets structural standards.

3. Demolition Orders and Nuisance Law

One of the most severe administrative penalties is a Demolition Order.

Non-Compliance: If a structure is built without a permit and is subsequently found to be non-compliant with safety standards, or if the owner refuses to rectify the violations, the Building Official can order the demolition of the structure at the owner's expense.
Nuisance Per Se vs. Nuisance Per Accidens: A building without a permit is not necessarily a "nuisance per se" (a nuisance at all times), but if it violates zoning laws or poses an immediate threat to public safety, it may be treated as a nuisance and summarily abated (demolished) after proper notice and hearing.

4. Criminal Liability

Violation of the National Building Code is a criminal offense. Under Section 213 of the NBCP, any person who violates the provisions of the code or its IRR shall, upon conviction, be punished by:

A fine of not more than twenty thousand pesos (₱20,000.00); or
Imprisonment for a period of not more than two (2) years; or
Both fine and imprisonment.

In cases where the violator is a corporation, the penalty is imposed upon the officers responsible for the violation (e.g., President, Manager, or the Director in charge of the project).

5. Liability of Licensed Professionals

For architects and engineers, signing off on or managing a project conducted without a permit carries professional risks:

PRC Sanctions: The Professional Regulation Commission (PRC) may suspend or revoke the professional license of an architect or engineer found to be in violation of the NBCP or the respective professional laws (e.g., R.A. 9266 for Architects or R.A. 544 for Civil Engineers).
Malpractice: If a structural failure occurs in an unpermitted building, the professional's liability is heightened, as they knowingly bypassed the state's safety review process.

6. Civil Liability and Fortuitous Events

In the Philippines, the Civil Code (specifically Article 1723) holds engineers and architects liable for 15 years if a building collapses due to defects in plans or the ground.

When a building is constructed without a permit, the owner loses significant legal defenses:

Presumption of Negligence: In the event of an accident or damage to neighboring properties, the absence of a permit creates a strong presumption of negligence.
Fortuitous Events (Force Majeure): An owner may find it difficult to claim that damage was caused by an "Act of God" (like an earthquake) if the structure was never vetted by the Building Official to ensure it could withstand such events.

7. Impact on Property Transactions and Insurance

Beyond direct legal penalties, construction without a permit creates "hidden" liabilities:

Certificate of Occupancy: Without a building permit, one cannot obtain a Certificate of Occupancy. This prevents the legal use of the building and is often a requirement for securing utility connections (water/electricity).
Insurability: Most insurance companies will deny claims for fire or structural damage if the building was constructed illegally.
Marketability: The structure cannot be legally appraised at its full value for bank loans or sales, as it is considered an "illegal improvement" on the land.

Summary Table: Levels of Liability

Category	Primary Consequence
Administrative	Fines, Surcharges, Cease and Desist Orders, Demolition.
Criminal	Fines up to ₱20,000 and/or Imprisonment up to 2 years.
Professional	Suspension or revocation of PRC licenses.
Civil	Presumption of negligence in damage suits; denial of insurance claims.