Contractors cite cost increases with new state building code, but HVAC engineers say it will save money

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Legislators in the Committee on Housing and Real Estate on Tuesday held a joint public hearing for a new clearinghouse rule from the Department of Safety and Professional Services (DSPS) for the state to adopt commercial building codes from the 2021 International Code Council (ICC.) The state uses the ICC commercial building code from 2015.

DSPS officials introduced new standards for fire suppression systems, insulation envelopes and heating, ventilation and air conditioning (HVAC). State officials, lawmakers and special groups devoted discussion to potential costs affecting owners and construction companies.

Steve Klessig, the vice president of architecture and engineering at Keller, Inc., said metal frame buildings would cost 15% more if the updates went into effect. Klessig appeared alongside John Schulze, the government relations director of Associated Builders and Contractors of Wisconsin.

“It’s going to be very difficult for a building like that to meet current codes,” the contractor added.

Klessig also cited concern over special inspections, which he said he calculated would cost an extra $20,000 for every building on average. An even “scarier number” he added was a cost increase of 1% for owners who pay professional inspection fees.

Mick Schwedler, presidential member of the American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE), said the new conservation codes would result in energy savings and lower operational costs. The updates, Schwedler added, would rake in over $800,000 in energy savings the first year and $340 million over the next several decades.

“It’s a key basis for codes and standards around the world for over 35 years… For each edition of the standard, the economic justification is considered by the committee,” Schwedler said, noting the changes would create jobs in the construction industry as well.

With the advent of the Inflation Reduction Act, builders and developers can root out more federal funds for mid-rise developments and buildings up to 12 stories, he added.

While talking with DSPS members about fire suppression systems, State Sen. Romaine Quinn (R – Cameron) questioned cost increases as the new standards move certain sprinklers requirements from 20 units to four units.

“We’ve been talking about housing a lot and many of these projects… death by 1,000 cuts is the term they use. There are a lot of increases that add up over time. I just worry when we start adding more requirements where there weren’t any, I wonder about the impact of construction to these projects,” Quinn said.

During the meeting, Rep. Jodi Emerson (D – Eau Claire) emphasized the safety regulations for buildings despite the overall concern over building costs. She cited the 1981 Hyatt Regency walkway collapse in Kansas City, Mo., an incident that resulted in the deaths of more than 100 people.

“None of the contractors would want to have something like that on their resume,” Emerson added.

In June, Gov. Tony Evers signed a legislative package to make affordable housing more viable for developers and created loan opportunities for owners who want to create more living space.