GBLU has previously mentioned that September is going to be a big month for green building regulations and the green building performance bond in Washington, D.C. So far, we have highlighted D.C.’s Green Building Act performance bond requirement and the surety industry’s response. It now appears the Government of D.C. is forging ahead with the green building performance bond requirement.
On April 25, 2008, D.C.’s Department of Consumer and Regulatory Affairs (DCRA) included new building codes in a proposed rule. DCRA has since completed the rule making process and on June 26 submitted the Construction Code Supplement of 2008 to the full D.C. Council. The Construction Code Supplement includes the following rules to enforce the Green Building Act’s green building performance bond requirement.
1301.2.3 Prior to Preliminary Review, the applicant shall file any
documentation required . . . and post a performance bond (or letter of credit or escrow
account) pursuant to Section 6 of the Green Building Act, D.C. Official Code
1301.2.4. Upon or before construction completion, the permit holder (whose
permit has been obtained pursuant to the Expedited Green Building Permit
Process) must apply to the Certifying Entity for “certification” of its
compliance with the Green Building Act.
1301.2.5 If green building verification is not obtained in accordance with
the requirements of D.C. Official Code § 6-1451.05, all or part of the
performance bond shall be forfeited as provided in D.C. Official Code § 6-1451.05(g) and (h).
The Government of D.C. remains very serious about incorporating a green building performance bond requirement that guarantees compliance with the Green Building Act. The City Council is set to vote on the green building codes in September 2008. The final vote will have a significant impact on the surety industry’s bonding of D.C. projects.