Helen Callier, Contributing Writer
Time is money, so let me get right to the point on the connection between high lumber prices and building permits.
It is no secret that since early 2020, lumber prices have increased to its highest point in history. High lumber prices combined with some jurisdictions taking much longer than usual in completing plan reviews and issuing permits caused many contractors to make tough business decisions.
Here are three real situations that the PermitUsNow team has heard over the last 6 months from contractors stressed financially due to higher upfront material costs.
- Some contractors started work without obtaining a building permit and were caught by City Code Enforcement.
- Others took their demo permit too far and began actual construction.
- Smaller contractors were flabbergasted with the set of cards dealt.
- And a couple of developers have asked how long can a permit be held before it expires, as they are considering waiting out the high prices.
The 2020 pandemic and its lingering bruises placed another straw on the camel’s back that stressed the supply of available lumber across the U.S. and North America. This added weight from increased homeowners’ DIY projects, boom in housing new start construction, workers staying at home, and many lumber sawmills in North America being closed or working at a reduced capacity in 2019.
Many sawmills were barely eking out operations because lumber futures pricing was too low for them to make a profit and survive. Visit the Nasdaq (www.nasdaq.com) and search “lumber futures.”
So, when the demand for lumber drastically increased in 2020, many sawmills in North America were what I call “flat-footed” and not prepared to handle the production demand with workers out and basically in quasi-shut down mode.
Economists who focus on the lumber industry indicate that lumber prices will be volatile for the rest of this year and longer. Even as I write this article, there are signs of lumber yards working regular hours which may indicate another shift. For sure, the industry is bracing that lumber prices will most likely not return to earlier levels like in 2019 or 2018.
With the lumber scenario, I suggest that contractors across all markets be proactive and follow the 7 suggestions below to pull permits in a timely manner.
- Start early in gathering all necessary documents for permitting.
- QA/QC construction plan sets and prerequisite documents prior to submitting to jurisdiction.
- Realize if doing remodels that 1-day permits are almost a thing of the past. In many jurisdictions, a 1-day permit now takes 3 to 5 days to obtain.
- Ask for help. Jurisdiction plan reviewers are available to answer any questions you might have in satisfying the building code. Call and schedule an appointment with a plan reviewer or connect live virtually.
- Respond as quickly as possible to any city rejection comments.
- Sign up for jurisdiction newsletters and alerts to stay on top of changes in jurisdiction permitting processes, new building codes implemented, operational hours, staffing levels, and other areas.
- Avoid the risk of being issued a violation and placing your customer in jeopardy. Put safety first and pull the right building permits before construction. And remember that rural areas follow different guidelines.
Market cycles occur and the lumber prices are reflective of one such cycle that has pressed many contractors against the ropes. Stay current, be proactive in pulling permits as shared in the above 7 tips, and adjust your contracting business in a manner to flourish.
#BuildSafe and call 1.844.PERMIT.4 anytime to reach one of our permit experts. And you can visit us online at permitusnow.com.
