HBW subscribers in the Miami area have already noticed the sharp uptick in phased permits, and how it affects their potential for residential construction job leads and commercial construction job leads. The economic meltdown of the last six years has left the land development pipeline running dry nationwide, but developers in Miami and Miami Beach are increasingly turning to phased building permits as a way to get the pipeline flowing again.
The phased permit process allows for developers to begin construction on a property much more quickly than traditional building permits do. The Florida building code authorizes city permit offices to issue phased permits at the discretion of the permit officials, as per Section 105.13 of the Florida Building Code. Builders may also seek trade-phased permits (electrical, plumbing, mechanical, etc.) during the construction process..
Developers in Miami and Miami Beach are increasingly turning to phased permits to keep the construction process running until the master permit is issued. Both areas have recently added the requirements of approval from the Department of Environmental resources management, and verification from the Water and Sewer division before phased permits can be obtained. Applicants in those areas must also execute a hold Harmless letter that relieves the municipality
Each phased permit lasts for only six months, within which time the Master permit on the property must be issued. The costs of phased permits are not applied to the cost of the final, master permit. It’s important to remember that a phased permit is issued as “pending” a master permit, and does not stand ‘in lieu of’ a master permit. Developers who seek these permits do so in agreement to undertake construction at their own risk and with no liability held against the city for problems that may rise in connection with the phased permit. Phased permit construction proceeds with the understanding that any and all construction may have to me modified or even removed in order to receive the master permit.
Although there are significant risks to take into account when deciding to apply for phased building permits, there is one major benefit to working with them. Phased building permits allow construction to proceed according to the preferred completion schedule. It is easier for projects to stay on schedule and meet deadlines, and not be handicapped due to bureaucracy in the permit office. Phased building permits make developers more ready to capitalize on market demand.
HBW serves builders in Florida, Georgia, Alabama, Oklahoma, and Texas. In addition to our Building Trend Activity for Residential Construction Reports, HBW can create a number of custom reports for any need you might have. We also offer exclusive White Paper Reports to help you market your business. Upon request, HBW is glad to provide you with complementary building data report or one of our specialized White Papers. Contact us today and start making your business more profitable! Check our newsletter for more information!