Construction codes are changing faster than most teams can keep up with. And for estimators, these updates change compliance along with quantities, labor assumptions, insulation values, structural members, MEP equipment, fire-safety provisions, and accessibility requirements.
According to the International Code Council (ICC), more than 70% of U.S. jurisdictions adopt new construction code cycles within 2 years of release, meaning estimators are constantly adjusting to new requirements rather than working with static standards. At the same time, Dodge Construction Network reports rising project complexity and an industry shift toward high-performance building, making code-driven costing harder for estimators to forecast accurately.
Layered on top are regional amendments like wildfire zones, hurricane provisions, and seismic upgrades, which make identical designs priced differently across jurisdictions.
In a nutshell, the new construction code’s impact on estimating is bigger today than at any point in the past decade, largely due to a push toward sustainability, safety, and stricter regulated accountability.
This article breaks down the most important building code changes, how they influence estimating, and what construction teams can do to mitigate cost and compliance risks.
Understanding major new construction code updates
Recent updates to the U.S. construction codes, such as the 2024 International Building Code (IBC) and the 2022 ASHRAE 90.1 standard, primarily focus on enhanced energy efficiency, increased resilience to extreme weather, greater sustainability, advanced fire safety, and the integration of new construction technologies and materials.
Let’s start breaking down all the new updates.
Key changes in energy efficiency codes (IECC)
Energy standards have seen the most dramatic change, with a significant push for sustainable construction practices.
i. Mandatory renewables
Both ASHRAE 90.1-2022 and the 2024 International Energy Conservation Code (IECC) include minimum prescriptive requirements for on-site renewable energy (e.g., solar panels) for specific building types. (Note: IECC 2024 introduces renewable-ready provisions and, in some jurisdictions, minimum on-site renewable energy requirements for specific commercial building types.)
ii. Stricter envelope requirements
Energy codes now require buildings to lose less heat, which means thicker insulation, better windows, tighter air sealing, and materials that reduce heat leaks. These upgrades directly increase both material and labor costs, making accurate estimating more important.
iii. HVAC efficiency
Updated mechanical efficiency tables and metrics (like SEER2/HSPF2 for heat pumps) require more efficient HVAC systems and components.
In a nutshell, what this means:
- Higher insulation R-values
- Stricter U-factor requirements for windows
- Mandatory blower-door testing: These tests often require third-party verifiers or rental of specialized equipment, and failed tests add repeat-testing fees that estimators must now include in their allowances.
- EV-charging infrastructure readiness
- Solar-ready provisions in select jurisdictions
- HVAC efficiency upgrades and duct leakage limitations
These IECC changes directly affect how estimators build their numbers. Thicker insulation, better windows, and renewable-ready features all increase material quantities and unit costs. Tighter air-sealing rules and higher HVAC efficiency standards mean more labor time and sometimes specialty crews.
Plus, new requirements like blower-door testing or EV-charging rough-ins add extra line items that didn’t exist before.
Overall, these updates make estimates more detailed and more expensive, and they require estimators to adjust their assumptions, update pricing, and plan for added testing or compliance steps.
Note: Local amendments and AHJ interpretations often deviate significantly from the base ICC updates. Estimators must verify local adoption cycles, exceptions, and amendments, since these can materially change quantities, test requirements, or equipment specifications.
Structural and safety code revisions (IBC)
These resilience and safety codes are being updated to account for climate change patterns and new safety research.
i. Extreme weather
Stricter guidelines are being enforced for buildings in hurricane-and tornado-prone regions, including requirements for impact-resistant windows and fortified roofing systems.
ii. Seismic provisions
New seismic design standards use updated earthquake risk maps that show how strongly different areas may shake, which often requires buildings in certain zones to be designed for higher forces. They also introduce structural damping requirements, meaning buildings must include materials or systems that absorb seismic energy so the structure moves less and stays safer.
iii. Fire safety
New codes require stronger fire protection — more advanced fire suppression systems, greater use of fire-resistant materials in high-rises, and updated safety rules for buildings with mixed uses to better prevent and contain fires.
In a nutshell, what this means:
- Revised structural load requirements
- New fire-resistance ratings for assemblies
- Updated stair geometry and accessibility criteria
- Enhanced mass-timber construction provisions
- Mandatory fire-rated separation in mixed-use designs
- Stricter deflection limits for cold-formed steel framing
And for estimators, the IBC code updates mean:
- Higher steel tonnage
- Bigger beam sizes
- Thicker fireproofing applications
- Additional fire-stopping line items
- More framing material
- Labor hours increase due to complexity
Materials and technology
New materials and digital tools are being formally incorporated into the code framework.
i. Mass timber
The IBC 2024 expands provisions for its use in taller structures, reflecting its growing popularity as a sustainable, strong material.
ii. Digital compliance (BIM)
Many municipalities are transitioning to mandatory digital submission processes, often requiring Building Information Modeling (BIM) files for approval, enabling early identification of code violations.
These updates affect estimators by introducing both new materials and new workflows into the cost structure. Mass timber’s expanded use in taller buildings means estimators must account for different structural systems, revised load paths, specialized connectors, and unique fire-rating requirements, all of which change material costs and labor assumptions.
Several states, such as Texas, California, Connecticut, and Ohio, have issued BIM mandates or strong BIM requirements for certain public-sector projects, accelerating BIM adoption in the wider industry.
This means estimators also need to work from coordinated 3D models, verify code compliance earlier, and incorporate digital clash-detection insights into their quantities and pricing. Overall, these changes add new line items, require updated cost databases, and increase coordination time during preconstruction.
New construction code’s estimating impact
The code changes that we detailed above have a significant impact on construction cost estimating, primarily by introducing new cost drivers and requiring more accuracy in estimating practices:
1. Increased upfront costs
New IECC and IBC rules (higher R-values, better glazing, stronger structural systems, upgraded fire ratings) increase material quantities and unit prices, especially for envelope, MEP, and structural trades.
2. Need for specialized expertise
Estimators must have up-to-date knowledge of the latest code requirements and the associated costs, including specialized engineering for seismic or wind resilience and "green" construction.
That’s why new code requirements have led to:
- Higher demand for skilled HVAC, envelope, and testing subcontractors
- Labor shortages in commissioning, energy modeling, and specialty inspections
- Increased use of third-party consultants
3. Need for updated and accurate costing data
The detailed requirements for efficiency and sustainability demand precise data collection. Using standardized cost codes like those from CSI and modern, integrated estimating software becomes crucial for precise unit pricing and overall budgets.
4. Looking beyond the upfront costs and focusing on long-term value
Navigating various code changes frequently and increased upfront costs may seem troubling. In this situation, estimators must recognize the long-term value.
Besides, many high-efficiency materials now have longer lead times and pricing uncertainty, requiring estimators to include escalation allowances and verify supplier timelines earlier.
These code-driven upgrades may seem to cost more now, but will save the owner money later, through reduced energy consumption and improved durability. Helping justify the investment and strengthen bids.
5. Risk mitigation
Incorporating new regulatory requirements into the initial estimate helps mitigate the risk of project delays, rework, and potential penalties for non-compliance, which are costly errors.
6. Leveraging technology
The complexity of new code calculations (e.g., energy modeling, carbon footprint analysis) makes it essential to rely on advanced technologies, such as BIM (already implemented in certain jurisdictions), AI-powered tools, and integrated estimating software, to maintain accuracy and efficiency.
Direct financial impact on your estimating workflow
New construction codes introduce several cost drivers that directly influence how estimators start pricing. From updated energy standards and safety requirements to new testing protocols and compliance fees, these changes shift both material pricing and labor assumptions. Here’s how these updates translate into clear financial impacts during estimating:
1. Higher labor and installation expenses
Stricter energy requirements mean pricier insulation, advanced glazing, upgraded HVAC systems, and renewable-ready electrical components.
Moreover, Tighter air-sealing rules, complex mechanical assemblies, and more detailed structural work for earthquake and tornado-prone areas require additional labor hours and sometimes higher-skilled crews.
2. Permit and compliance fee increases
New code cycles often add extra inspections, testing requirements (such as blower-door or duct-leakage tests), and higher permit fees.
3. Greater risk of delays and overruns
Missing code-driven items can trigger redesigns, failed inspections, or rework. All of which increase project costs and schedules, and make overall construction unpredictable if your estimates are inaccurate.
4. Expanded scope due to local amendments
Jurisdiction-specific rules (like wildfire zones, hurricane impact systems, or seismic upgrades) add mandatory line items that weren’t part of older estimates.
And many jurisdictions have added stricter flood-zone and wind-uplift requirements, which directly impact foundation, roofing, and structural costs.
Strategies for accurate estimating under new codes
With code update cycles becoming more frequent and complex, introducing many new materials and processes, accurate estimating now relies on stronger research, tighter coordination, and modern digital tools. Estimators must adapt their workflows to capture new requirements early, avoid costly rework, and maintain bid accuracy. Let’s look at a few strategies that can help estimators amid code changes.
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1. Stay aware and conduct proactive code research
Review the latest IECC/IBC versions, local amendments, and project-specific requirements before starting takeoffs to avoid missed scope.
2. Collaborate early with design teams
Clarify envelope details, mechanical performance requirements, fire separation assemblies, and structural changes to prevent pricing assumptions.
3. Leverage historical data and benchmarks
Compare past projects and newly estimated projects under updated codes to understand typical cost impacts/fluctuations. This prepares your pricing and estimates for future projects.
4. Include realistic contingencies
Add allowances for performance testing, compliance-driven changes, and potential redesigns triggered by code interpretations.
5. Use digital tools to keep your estimates accurate, regardless of code changes
Use BIM, if it's necessary in your particular jurisdiction, and AI-powered takeoff tools. Software like Beam AI completely automates your takeoff process and delivers accurate, estimation-ready outputs, so you’re not spending hours tracing plans or revisiting sheets after every revision.
These tools also make addenda management much easier. Beam AI automatically detects what's changed in the drawings, updates the quantities, and provides versioned comparisons you can review side-by-side. This ensures you always know exactly what shifted, keeping your estimates accurate and compliant as codes evolve.
Before you go
Construction codes will continue to shift toward higher performance, stronger resilience, and stricter sustainability standards. That means estimators will face more frequent updates, more detailed assemblies, and greater cost impacts with each new cycle. Staying ahead will require early code review, closer coordination with design teams, and a move toward digital tools that can keep pace with rapidly changing requirements.
Teams that embrace modern estimating workflows, understand code-driven cost changes, and adopt automation where it matters will be the ones best equipped to price accurately, stay compliant, and turn evolving regulations into a competitive advantage.
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