The Urgent Need for Digitizing Building Permits in Canada: A Step Toward Modernization
In recent years, the construction industry has faced numerous challenges, not least of which is navigating the labyrinthine permit processes that vary from province to province. In Canada, the issue has reached a critical point, particularly in regions like Ontario. This article delves into the urgency of digitizing building permits, the initiatives underway, and the potential benefits for the Canadian economy and housing market.
The Current State of Permitting in Canada
Despite being part of the G7, Canada lags significantly in the realm of construction permit efficiency. A World Bank survey notes that Canada ranks 64th out of 190 nations regarding the ease of obtaining construction permits. Such stagnation not only hampers economic growth but also reflects an alarming reliance on outdated systems and processes.
Arash Shahi, CEO of AECO Innovation Lab, has pointed out that Canada is the only G7 country without a national Building Information Modeling (BIM) mandate. While some municipalities have embraced curbside pickup for physical documents, Shahi argues this is merely a stopgap measure. "Those drawings could be digital and tracked through the internet," he adds, highlighting the vast potential for modernization.
The Initiative: One Ontario
In response to the permitting crisis, AECO Innovation Lab has launched the "One Ontario" initiative. The project’s goal is to create a standardized, common data platform for all construction project approvals across the province. One of its primary objectives is to streamline the permitting process by eliminating the need for multiple submissions to various authorities, which often include environmental and transportation bodies.
Shahi elaborates, "There would be a single and consistent method of application for development approvals. You’d go to one portal, regardless of what municipality you’re building in." This will not only expedite the approval process but also create a transparent environment that allows stakeholders to track their applications efficiently.
Support for the initiative is robust, with key players like the Residential Construction Council of Ontario (RESCON) and the Ontario Building Officials Association (OBOA) backing the effort. Over twenty Ontario organizations, including the Ontario General Contractors Association (OGCA), have signed on, signaling a collective will for change.
The Urgency for Home Builders
The current permitting landscape presents specific challenges for home builders, who often endure long waiting periods tied up in bureaucratic red tape. RESCON President Richard Lyall indicates that approximately 45 different government bodies are involved in the approval process at various stages. Inadequate enforcement of standards can lead to significant delays, which ultimately ties up vital capital for years.
The organization has noted that these challenges can result in substantial financial burdens and uncertainty for builders. "If you have areas where standards aren’t enforced or there are no standards at all, then in terms of accountability, transparency, and predictability, you’ve got a problem," Lyall states.
Observations from Institutional, Commercial, and Industrial (ICI) Projects
For contractors primarily engaged in institutional, commercial, and industrial projects, the impact of e-permitting may not be as glaring. Generally, general contractors (GCs) enter the process after permits are secured. However, the OGCA remains astutely aware of the implications of One Ontario for all project developments. “We are watching the implementation of One Ontario closely to see the impact on project approvals,” says Erich Schmidt, Government and Stakeholder Relations Associate at the OGCA.
The OGCA emphasizes the importance of creating a level playing field during the standardization processes. "Once some form of e-permitting is established and there are proven test cases, the industry might push to adopt a BIM standard," Schmidt adds, underlining the need for inclusiveness in the transition to modernized systems.
Funding the Future
While the promises of One Ontario are enticing, the initiative currently lacks sufficient funding. An estimated $2 million is needed to kickstart the project, a relatively small amount given that much of the groundwork has already been established in other countries such as Singapore and the U.K.
"The good news is that everybody else has done this, and we can learn from them and adapt that according to what we want to do," Shahi mentions. He emphasizes that the real work lies in getting various approval entities to collaborate, agreeing on terminology and data storage methods.
Expected Outcomes: Alleviating Housing Shortages
The potential benefits of streamlining the permitting process are vast. Evidence from other jurisdictions, like Finland, indicates that improved permit efficiency may lead to a surge in new construction projects. "We know that in other jurisdictions, the introduction of such systems has actually caused more projects to come forward," Lyall explains.
When builders can predict their return on investment and timelines for approval, they are far more likely to initiate new projects. This could significantly contribute to alleviating housing shortages in major urban areas such as Toronto and Vancouver.
Conclusion: A Call to Action
The pressing need for digitizing building permits in Canada represents not just a technical challenge, but a critical opportunity for economic growth and urban development. "The critical mass has been created, but we need the voice of the industry," Shahi asserts. Stakeholders must rally behind this initiative, advocating for the necessary funding and support to push One Ontario forward.
In a landscape where efficiency and accountability are paramount, digitization of the permitting process stands out as a substantial step toward not only modernizing construction in Canada but also ensuring that the nation’s housing market can cater to its growing population. The call for change is clear, and the time to act is now.
