Hiring Third-Party Permitters Can Reduce Building Costs 

New model legislation outlines a way states can allow independent permitting and inspections to prevent delays 

NEW YORK, NY – In development, time is money. The sector is heavily reliant on high-interest financing as well as materials and labor contracts that remain in place even if work stops. Government holdups—from reviewing building plans to electrical inspections—either prevent projects from moving forward or drive up costs, which ultimately makes buildings more expensive for future occupants. In new Manhattan Institute model legislation, senior fellow Judge Glock proposes a solution: allow developers or builders to hire independent third parties to perform permitting and inspecting.  

Introducing competition into the permitting and inspection process would reduce costly bottlenecks. Independent permitters and inspectors would still follow existing government laws and regulations and be held accountable for errors, unlike government agencies which often operate with immunity. The model bill draws from the successful experiences of states like Florida, Texas, and Tennessee, which have passed bipartisan legislation enabling developers to use independent inspectors and permitters. These reforms have reduced delays and increased competition without compromising public safety. Glock’s proposal offers a flexible framework that can be tailored to meet individual state needs while not detracting from any essential government function.  

Click here to view the model legislation.