On Jan. 9 this year, the Pennsylvania Department of Labor and Industry (L&I) announced the implementation of the new Uniform Construction Code (UCC) in the Pennsylvania Bulletin. Since that date we have been barraged with information and misinformation on what the new code means (and doesn't mean) to those who are involved with the sale, purchase, ownership, management, development, design and construction of buildings in Pennsylvania. In general, we know that the new code will make our buildings safer to occupy, more accessible to the handicapped and more energy efficient. We also know that buildings will take more time and be more expensive to design, obtain permits for, and construct. This will result in greater risks for current and would-be real estate developers. Aside from those generalities, there remains a great deal of uncertainty (requiring even more vigilance) about the new building code. Some of the areas of uncertainty include:

1. The effective date of the UCC is not uniform throughout Pennsylvania: Each municipality must adopt the code, but has the option of selecting an implementation date between April 9 and Aug. 8, 2004. In addition, project that had a written designed contract by April 8 are exempt from the UCC; they may use the old code. Recommendation: Track the implementation status of the UCC in each municipality where you have a real estate interest, just the way you track zoning or fluctuations in mortgage interest rates.

2. The UCC is not the same as the International Building Code (IBC) and is still subject to change: Actually, the UCC is an amended version of the IBC. The Pennsylvania Legislature and L&I have addressed special concerns (and lobbying interests) in these amendments, all incorporated in Chapter One. These changes make the UCC significantly different than the IBC enforced in 48 other states. The Pennsylvania Legislature and L&I are also still trying to amend Chapter One, to address loopholes and inconsistencies, as well as more lobbying interests. Recommendation: Routinely monitor the Pennsylvania Bulletin to spot those changes.

3. The variations in the enforcement of the UCC will be more critical than its content: Each municipality will have the option of having the code enforced locally (called "opting in") or by L&I (called "opting out"). If L&I is the selected enforcer, turnaround time for plan reviews and site inspections is apt to be longer, fees will be higher, and options to negotiate code interpretations will be more rare. If the municipality chooses to self-enforce, fees may be lower and access greater, but turnaround time might remain problematic. Municipalities can outsource some or all of the code work to a certified third party code review agency. This may prove the best opportunity to fast track plan reviews and inspections. Note that the selection to self-enforce or use L&I can be changed as often as every six months. Some municipalities may choose L&I for now. Once they hire more code certified staff (and/or third party agencies), they will switch to self-enforcement. Recommendation: Routinely check with the local municipal code department for their latest approach to enforcement.

4. The building operation licenses will be more burdensome than the construction code: The adopted International Fire Code requires operational licenses and annual inspections for a myriad of conditions, ranging from hazardous storage areas to assembly areas such as conference rooms. The fees for the licenses plus addressing the results of the annual inspections will impact annual building operating costs beyond the UCC's original increased expense due to tougher requirements and more stringent enforcement. Recommendation: Become familiar with these operation license requirements and their related risks and costs for each facility you own.

In a year we will know better how the system works... and how to work the system. In the meantime, it will be a learning process for all parties with the time and additional funds required to make buildings happen. For anyone planning to deliver a building on a tight schedule, committing to an occupancy date before receiving a building permit could be very costly. For anyone planning to develop projects, the early involvement of an architect to address building code process issues will be just as important as the early involvement of a civil engineer for land development issues.

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