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All Things Construction PM

A Lesson Learned About Permitting for Commercial Construction Projects

Published 11 months ago • 3 min read

This week I want to talk about something different. Instead, I want to share something that I learned this week.

The reason I want to talk about it is because it might result in a delay in my project. While we have done all we can to prepare for this project, we might have equipment sitting for months until we have a permit.

I’ll cover my lesson learned for this project. This is something I might use at the end of a project to prepare accordingly for the next job.

So, let’s start with what happened.

The Back Story

I have a project that involves replacing the AC system for a commercial building in Hilo, Hawaii county.

Typically, we don’t include any permitting in our proposal unless specifically requested by the project owner. Well, this was not a big deal; the owner was ok with getting the permit application submitted himself.

The issue is the turnaround time for the permit. After speaking with one of our subcontractors who is local to the Hilo area, they informed me the turnaround time is about one year.

I know many variables come into play here, so we could potentially be sitting on the equipment while waiting for the permit. I remain hopeful that we might receive the permit sooner.

We’re about to enter July, and the application process is only halfway through.

The worst part, the equipment I ordered is scheduled to arrive sometime in November. So, I could assume that based on the current rate, I could expect to receive my permit when my equipment arrives. That would be the best-case scenario, but I’m not counting on it.

Instead, I’ll use the information I was provided and assume I’ll get the building permit in February 2024.

The Lesson Learned

Here’s the problem, I should’ve been already thinking about what would happen if I didn’t get the permit by the arrival date of my equipment.

Why?

Because we have been planning, ordering materials, and spending time and money to prepare for this work to begin. While it’s not a huge deal, there will be some money loss because we need to spend more time going back over the plans in preparation for when the permit is issued.

Additionally, I need to determine where the equipment will be stored. The indoor fan coil units (FCU) are not a big deal, but I worry about the air-cooled condensing units (ACCU).

Each of the ACCUs will require a small crane or forklift to handle, so I can’t easily store these on-site; I will require a warehouse.

Thankfully, I still have plenty of time to plan for the storage of the ACCUs, but it would have been good to think of this at the beginning of the job.

Here’s where the next lesson came up.

You see, when it comes to permitting, each county operates differently.

The rules and regulations that you must deal with in one county can vary significantly in the next.

You should get familiar with the requirements of the county you’re working in to prepare yourself for the work to come.

For example, in Honolulu County, a bill was passed allowing inspections to occur even without an issued permit. The process to get this completed is called a special assignment inspection (SAI).

There’s a specific form that you must fill out and pay a fee of $1,000 to obtain your inspection. The bill was introduced because the backlog of permit applications was preventing construction from occurring.

Both owners and contractors are stuck due to the permitting department’s slow turnaround.

The link is below if you want to check out the SAI form.

https://www.honolulu.gov/rep/site/dpp/bd/bd_docs/special-assignment-inspection-request.pdf

When it comes to the county of Hilo, they have no such form. So, if you don’t have a permit, you’re out of luck.

You just need to wait until you have something in hand or take the risk and start construction before the permit department issues you something.

If you get caught doing starting work before permit issuance, you will have to pay a fine. Some contractors are just accepting this fine to get ahead on the project.

Even if we decided to start the work, we wouldn’t be able to get very far because it would still require inspection at some point. The consequences could be devastating if you try to complete a job without proper inspections.

Conclusion

To conclude, I’ll likely need to push out our schedule until I get some status on the permit application. From there, I can update the schedule accordingly.

The main takeaway I want to leave you with is to do your research on your county permitting rules and regulations. You could get into some trouble if you’re under-prepared.

Also, talking to your subcontractor can be an excellent way to learn about these requirements. When trying to research the permitting rules of Hilo, I couldn’t find much valuable information. It wasn’t until I asked my subcontractor local to Hilo; then I was given some valuable info.

I wish you the best in your construction endeavors.

Respectfully,

Alex

All Things Construction PM

Alex Fraser

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