Preparation for Changes

Recap

In our previous article, we discussed the most common municipal codes that lead to permit rejections in various major cities. Below we’ll cover how residential developers, builders and energy professionals can take proactive steps to prepare for upcoming regulatory and code changes.

Stay Informed and Engage Early

In order to stay informed about upcoming changes to local and national regulations, construction industry professionals should regularly monitor city council meetings, state legislative sessions, and updates from local building departments. Subscribing to newsletters from relevant industry bodies and government agencies is a great place to start. Many of these government newsletters and informational articles are also free to browse.

• American Planning Association: Helping residents and their leaders gain valuable insights into the planning community, to anticipate and adapt practices for their local communities.
• The Overhead Wire: Collection of 100k+ city-specific news articles curated for the national populous.
• ICMA: Organization of local government professionals identifying local government practices for others to adopt.

Early engagement with local authorities and participation in public comment periods can provide construction companies with opportunities to influence regulations. Authorities are required to announce public comment periods, usually through their websites, newspapers, or local publications. If there are public forums or hearings, attend and provide your input. After voicing your concerns/requests, establish relationships with key contacts in the local authority. Continuous engagement will make your input more impactful over time.

Proactively Update Design and Building Practices

Building upon the information-gathering section above, understanding the outcome of these potential changes will help clarify the impact these decisions will have on your business. A “how we do business” and “how this could impact our business” comparison will inform you and your company about the major changes to look out for before regulations or codes are solidified. If these changes seem imminent, incorporating new regulations into the design phase will also prevent costly redesigns that would occur down the road.

Evaluate and Adjust Budgets

Construction industry professionals should review and adjust their project budgets to account for the costs associated with these upcoming code and regulation changes. Take into consideration all aspects of your project, from hardware and materials procurement, to additional training and trades requirements, to timeline impacts and potential lost revenue.  An all-encompassing view of your standard project costs will greatly inform you of the budgetary changes that need to happen, ensuring financial responsibility.

As you’re reviewing the bottom line, it’s good practice to consult tax professionals to understand if there are any benefits your company qualifies for. For example, to support the transition to new building and energy practices, the Federal Government has tax incentives to support.

• 179D Tax Deduction: Incentivizes energy efficient building improvements, including HVAC, lighting and building envelope improvements.
• 45L Tax Credit: Designed to reward builders who take part in constructing energy-efficient homes. The tax credit can be worth up to $5,000 per dwelling unit, depending on the home type, number of stories, and the energy efficiency requirements that are met.
• 25C Tax Credit: The Energy Efficient Home Improvement Tax Credit provides a tax credit for up to 30% of the cost of a qualifying home improvement.
• R&D Tax Credit: Incentivizes solutions or processes that reduce time on the construction site or alternative systems to improve efficiency at the construction site.

Collaboration and Engagement

Partnering with other professionals or consultants can help construction professionals navigate these changes effectively. For example, joining a local industry chapter and attending meetings will enable you to share best practices among your peers who are impacted by the same changes. This is especially fruitful when directly engaging with others who specialize in building codes and regulations, who will provide insight into ways to navigate new regulations.

• The National Association of Home Builders: The largest network of craftsmen, innovators and problem solvers dedicated to building and enriching communities.
• Associated Builders and Contractors: National construction industry trade association representing more than 23,000 members.
• SEIA:  National trade association for the U.S. solar industry, who embodies innovation and entrepreneurship that defines solar energy.
• American Council on Renewable Energy: Unites finance, policy and technology to accelerate the transition to a renewable energy economy.

Technology Solutions

Embracing innovative technologies, such as new materials or software tools, can help construction professionals meet new standards more efficiently and cost-effectively. For example, utilizing Building Information Modeling software and other planning tools can help construction professionals simulate the impact of new building codes on design and performance. Also, adopting municipal code software will take time-consuming research and guess-work out of the equation, allowing construction industry professionals to focus on building. Tools like the Fordje Code Clarifier enable construction professionals to quickly understand needs, port relevant data into existing workflows, and receive immediate notifications when code changes occur.

Concluding Remarks

There may be scenarios where the changes seem insurmountable, or an action plan can’t be developed in time to meet the new regulatory or code requirement changes. When this is the case, temporarily tightening your geographic footprint may be the best option for your company. While this is not likely a long-term strategy, it will enable your company to conduct additional research and employ new tools in order to re-approach the geographic region with confidence.

By staying proactive, adapting designs, and collaborating with experts, construction industry professionals can effectively prepare for and navigate upcoming regulatory and code changes. This approach can also provide a competitive advantage in a rapidly evolving market and showcase to potential clients your ability to stay ahead of the curve.