Construction industry plays a leading role in the economies worldwide, and its performance is significantly related to the welfare of society. This relationship is direct in the developing countries. Thus, obtaining a construction permit is a critical process in Colombian building projects. This empirical study found that in 21 Colombian capital cities the number of phases, time and cost required to complete building permits have negative effects over the construction industry performance; whereas, per capita GDP and municipal transparency index have a positive influence. As a result, there is a need to reduce unnecessary phases and costs in Colombian building permits. Additionally, this study contributes to the understanding of building construction performance predictors and to address the design of more appropriate public policies.