The Hidden Costs of Local Government Bottlenecks

As a remodeling contractor, I have to deal with county and local governments quite a bit. Every job we do requires a permit from the city or county, depending on where the home is located, and requires at least one inspection – sometimes several.

Over the last couple years, it’s been getting harder and harder to get those requirements done in a timely manner. It makes it really hard to do business, but the problem is much more than that.

It might seem like a relatively minor annoyance, but the slow pace of things like permitting and inspections has some hidden costs.

Wait Times Have Grown

Not too long ago, we would have to wait just a week or two to get a permit issued for a project. Then, at different points throughout the project, we would schedule inspections for plumbing, electrical, and HVAC. As long as we were on schedule, we could those inspections done in a day or two, then continue with the job.

Now, I’m still waiting for permits to get approved that I applied for in September. Inspections can also take six to eight weeks.

And we’re just one company. The same thing is happening to contractors around the area. The problems it causes go a lot farther than people might realize.

It Limits Jobs

When we have to spend so much time waiting for permits and inspections, that’s time we could be spending working. There are only so many working days in a year, so the slow pace of permitting and inspections means we can do fewer jobs.

That means less economic activity. Less work for my subcontractors and for my employees. Fewer materials purchased from suppliers. Less income for people to support their families.

In addition, homeowners may simply choose not to do the project because of the timelines. That again results in less work for any one associated with the home improvement industry.

It Increases Prices

Because we can do fewer jobs in a year, we have to price our jobs in such a way that we can sustain the business. We may have fewer clients and projects, but certain overhead costs, including salaries, stay the same or even increase.

So that means we have to price each job a little bit higher. That again results in fewer homeowners being able to afford a project.

The amount of work is essentially shrinking, not because people don’t want it, but because of government bottlenecks driving prices up. That means many contractors will have to cut back, won’t be able to hire people, or may just decide to close up shop for good.

It Affects Safety

The biggest problem caused by government bottlenecks is safety, as it results in many jobs being done that don’t meet code or safety standards.

Most of the contractors in my area are committed to integrity and doing things by the book. But whenever you place an obstacle, there will always be people who try to get around it.

The temptation is just too great. There are plenty of contractors out there who operate outside the regulations and don’t pull permits or schedule inspections at all.

That means jobs get done that may not meet code or safety requirements, which puts homeowners at risk. And not just the homeowners who have the job done, but future owners of the homes with non-permitted jobs.

That completely defeats the purpose of why the permitting and inspections exist.

What Can Be Done?

This is not a problem that can be solved quickly, but it starts with people holding their local officials accountable. If you’re a homeowner and you experience this problem, send a letter to your local mayor, alderman, or county supervisor. Let them know why you think this problem should be addressed.

More importantly, pay attention to local politics. Many people don’t pay much attention to local government. The elections usually have a low turnout, and many candidates run unopposed.

The bottlenecks of inspections and permits are just one problem. There are many more that local officials are in a position to fix. Make sure you get involved and vote for people you think will make local governments run better.