Building Inspection Commission adopts updated DBI cost schedule with higher valuation multipliers

The Building Inspection Commission voted unanimously Dec. 22 to approve an updated Department of Building Inspection cost schedule that adjusts permit valuation estimates to 2022 construction-cost values.

Neville Perera, deputy director of permit services, presented the revised schedule and told commissioners the valuation table had not been materially updated since 2017. Perera said the department reorganized the schedule, added a residential remodel category and used multiple industry sources to set 2022 values.

He offered two examples in his presentation: the tenant-improvement valuation used in permit valuation increases from $126.74 per square foot (2017 table) to $217.76 per square foot in the 2022 update (about a 71.8% change), and residential remodel valuation rises from roughly $98 to about $190 per square foot (about a 94% increase). Perera said other categories show increases typically in the 22% to 40% range.

Perera acknowledged the Code Advisory Committee reviewed and approved the updated schedule and credited Building Inspector Matt Amer for leading the update. Commissioners asked whether external stakeholders had been consulted; Perera said this revision was an "objective analysis" of construction-cost sources rather than a stakeholder-driven change and noted the department plans to revisit valuation more frequently, potentially tying updates to a national schedule published by the International Code Council.

President Beto moved to approve the cost schedule, a motion that was seconded and carried unanimously. Perera said staff will publish guidance for permit applicants and follow up with examples demonstrating how the new valuation will be applied at the permit counter.

The commission recorded the approval and directed staff to report back on application of the new schedule and any stakeholder feedback.