Energy consultation is inherently a large aspect of risk mitigation when developing real estate, so to finish off our series on frequently asked questions, we have decided to do a brief post covering the risks of not being compliant to energy codes in a development project.
In this article, we will cover the risks of not being compliant to code, the outcomes of mismanaging these risks, and the best strategies to avoid the overall problem.
This is the fifth post in our ongoing series on frequently asked questions about energy compliance in development projects throughout California. In this series, we cover the three most frequently asked questions in development projects and our answers to each. If you have found this post of use, you may want to check out the rest of this series.
Follow the links:
Part 1 ‒ The Top 3 FAQs About Energy Compliance in California’s Development Projects
Part 2 ‒ California’s Real Estate Energy Compliance FAQs: Why Is It Necessary?
Part 3 ‒ California’s Real Estate Energy Compliance FAQs: The Steps to Compliance
Part 4 ‒ California’s Real Estate Energy Compliance FAQs: How Much Does Compliance Cost?
Part 5 ‒ The Risks of Not Passing California’s Real Estate Energy Codes
The risks of not passing code for a developer are ultimately all related to unwanted shifts in the budget and schedule. If the problem is caught before an inspection, the risks are passed down to damage control and there are appropriate onsite construction document rewrites and shifts in construction. If the problem is caught during an inspection, this has the potential for costly rebuilds, a site shut-down until the problem is solved, and an unnecessary lag in acquiring the Certificate of Occupancy.
The outcome of falling short
As we mentioned, the outcome of a development project falling short on energy compliance is a lengthened timeframe and a greater investment for the same result. This means that the importance of getting the energy systems right the first time around is a top priority to a development project, and can be measured in dollars and cents.
The best way to mitigate these risks are to avoid the problem in the first place. While this is easier said than done, this goal can be achieved with three steps:
- Ensuring that the plans and materials are both up to code and feasible to implement
- Offering the proper training for the implementation that is required for the project, and
- Reviewing the installations prior to well-timed inspections.
Assuring code compliance
The way to assure the correct implementation of energy systems, code compliance, and that these three steps are taken with due care and diligence is to bring an energy consultant into the team. This is the best way to keep a budget and schedule on track.
The cost of an energy consultant compared to the lifetime cost of a development project and the potential costs of fixing the original plans mean that this method also optimizes spending, both during the implementation and by keeping unnecessary costs at arm’s length.
We hope that this series has answered the three most frequently asked questions regarding energy compliance in Californian development projects. If you have any further questions, feel free to reach out to us here at E3, and best of luck with your future projects.