What Everyone Needs to Know About Building Codes

What is a Building Code?
A building code is the minimum acceptable standard used to regulate the design, construction, and maintenance of buildings for the purpose of protecting the health, safety, and general welfare of the building’s users.

Benefits of Building Codes
The purpose of building codes is to build safe buildings. This preserves the built environment, both residential and commercial, reduces public and private disaster aid, and maintains employment in businesses and institutions that otherwise might be forced to close following a catastrophe.

In addition, building codes promote a level and predictable playing field for designers, builders and suppliers. They promote a degree of comfort for buyers, who are entitled to rely upon minimum construction standards for the safety and soundness of a building.

Building codes also allow economies of scale in the production of building materials and construction of buildings. Furthermore, building codes contribute to the durability of buildings and help maintain quality of life and property values.

The Problem with Variations in Building Codes

State standards for construction, code-related inspection, and enforcement vary widely across the country. Some states have adopted statewide building codes applicable to virtually every type of structure (residential, commercial, industrial, public, schools, hospitals, and farm buildings), while others employ lesser degrees of regulation and code applicability -- or none at all. Where statewide codes exist, it is not uncommon to allow individual jurisdictions (e.g., cities of a particular class or counties) to deviate from the state standard, often resulting in a weakening of the model minimum standard.

There are some jurisdictions that do not include one-and two-family dwellings in the application of building codes. Significant concern exists in regard to outer suburban (or semi-rural) areas where much new residential development is taking place. In these areas, with a concentration of residential construction, a lack of codes (or code enforcement) may mean that new homes are being built and sold with virtually no adherence to codes and that there is little control over how these buildings will perform, especially in natural disasters.

Why is it Important to Adopt a Code Without Weakening Amendments?
Statewide building codes -- and adequate enforcement of those codes -- play a vital role in public safety and loss prevention. In addition to saving lives and reducing property loss, statewide building codes based on nationally recognized models can reduce the need for public disaster aid; promote consistent guidelines for design professionals, suppliers and builders; create a minimum standard upon which consumers can rely; and contribute to the durability of structures.

Model building codes may need to be amended to meet the administrative needs and requirements of the governing community.  However, provisions addressing design, construction or performance standards within these codes should not be changed in any way that will reduce the strength of the provisions.  This will ensure that  minimum safety and performance goals are met.  Leading experts in the field of science, engineering, and building construction have developed the minimum standards to ensure safe and predictable building performance. When technical content in local codes deviates from the standard codes, it should be allowed only to strengthen, rather than relax, code provisions. While local government and the building industry may raise objections to codes (often on the asserted basis of cost), it is clear that consumers, communities and builders, alike, benefit from effective building codes in the long run -- and the costs of code enforcement are clearly offset by the long term benefits. 

Recent benefit/cost studies have indicated that adopting stronger minimum code provisions for natural hazard vulnerability reduction have positive benefit/cost ratios ranging between 3 and 16.  In other words, for each dollar increase in  construction costs, there is a long term savings of 3 to 16 dollars.   This concept is similar to environmental and energy benefits a consumer sees when purchasing a more efficient air conditioning system or more thermally efficient windows.

Good Building Codes Have Little Value if They Are Not Enforced. 
Independent studies of damage following Hurricane Andrew and the Northridge Earthquake revealed that lax code enforcement contributed to the total damage. Building codes are generally enforced by building departments at the local level. These departments are often funded by permit fees, which average less than one percent of construction costs. Plan reviewers and building inspectors are key to the success of building codes. Unless these functions are adequately funded and staffed with qualified, trained, tested and certified personnel, the full value of building codes will not be realized.  It is important that all fees generated from building permits remain as revenue for the building department.  The model codes have suggested permit fees at levels that will support the activities and training required for the building department.

IBHS worked with the Insurance Services Office (ISO) in the development of the Building Code Effectiveness Grading Schedule (BCEGS), a program where the enforcement capacity of a jurisdiction could be evaluated. ISO collects information related to personnel qualification and continuing education as well as number of inspections performed per day. This type of information, combined with local building codes, is used to determine a grade for that jurisdiction at the time of the evaluation. The grades range from 0 to 9 with the lower grade being more ideal. The jurisdictions are re- evaluated periodically, usually in 5-year intervals and are re- assessed. These evaluations are available to ISO’s members in a similar fashion as the fire protection class information. Insurers can use BCEGS for policyholder credits, based on the performance of a jurisdiction and the building code being enforced.  Adequate funding of the building department is critical to achieving favorable BCEGS ratings.

Summary
Building codes provide the minimum standards to which buildings can be legally constructed throughout the country.  They are instituted to help ensure the safety and health of building occupants.  Stronger codes are more cost-effective in the long run.  To be effective, codes must be enforced by qualified personnel who are properly trained to ensure that the approved standard is met.  Adequate funding for building departments is critical for their success in protecting individuals and the community.

This information is based on the November 2005 issue of IBHS Insights, with updated, easy to understand information on building codes and their value in protecting lives and property.  Download this publication by clicking to the right.