What went wrong and how to fix it

Permitting has evolved dramatically over the centuries, from the earliest building codes in ancient Babylon to today’s multi-layered, time-consuming approval processes. While many industries have seen dramatic productivity improvements, construction has famously not been one of them. Although construction productivity has declined by about 6%, that’s practically a rounding error compared to permitting, which has gotten 400% slower in the same time span. In 1960, it took around 4 months to get a permit for something like a store or an office. Today, it could take 16 months. So, what went wrong in the last 60 years?

In this article, we’ll explore the history of permitting, why it has become such a bottleneck, and most importantly, how we can start to reverse that trend with modern tools and technology.

The origins of permitting: from ancient codes to modern bureaucracy

The saga of permitting started almost 4,000 years ago in ancient Babylon, where Hammurabi's Code established the first building regulations. These early laws were simple—if a builder didn't follow the code, they were responsible for repairs. During the Renaissance, guilds of builders took over, training skilled labor and inspecting projects for quality. Builders held each other to a high standard, with incredible results. Many of our most loved buildings were built in this way and are still standing 800 years later. 

The concept of government-controlled permitting as we know it today didn’t emerge until the late 19th century, as industrialized cities faced new safety hazards. With the rise of gas and electricity, the risk of fire became severe. In 1871 there were more than 25 major fires across the country. Roughly a third of the City of Chicago burned to the ground. Citizens and politicians called for action, leading to the formation of city building departments—often under the Fire Department itself. The impact on project timelines was negligible. In the early 1900s, a project might take only days to receive approval.

Over time, the simplicity of those early systems gave way to growing complexity. By the mid-20th century, urban planning, zoning, and environmental regulations were added to the mix. As each new problem arose, new rules and regulations were created without removing old ones, leading to today’s long, cumbersome permitting process.

The problem of addition: why permitting keeps slowing down

A psychological study by Leidy Klotz and Gabrielle Adams showed us that humans are wired to solve problems through addition rather than subtraction. As part of the study, the researchers “scanned through an archive of ideas for improvement submitted to an incoming university president and found that only 11 percent of 651 proposals involved eliminating an existing regulation, practice or program.” In one part of the study, the researchers showed that to make a pattern, people will add one or even two lego blocks rather than just subtracting one that don't belong.

This insight helps explain why permitting has become so complex over time. Every new crisis—whether related to safety, environmental concerns, or urban planning—has led to the introduction of new requirements. However, few of these requirements have been streamlined or simplified, leading to an ever-growing pile of paperwork and bureaucracy.

This problem is compounded by the sheer number of local jurisdictions, each with its own unique processes and regulations. While construction projects have become more standardized, permitting remains highly localized, forcing developers to adapt to different rules for every project.

The current landscape: more delays, more permits, more waiting

In 2024, the situation is dire. A typical ground-up project might take just four months to construct but require over 16 months to permit. The causes are clear:

1. More Permits: As cities grow, the number of required permits has multiplied, covering everything from environmental impact to site encroachment.
2. More Sheets in Permit Packages: A set of construction drawings that once contained 10 sheets can now exceed 50.
3. More Jurisdictions: Developers working across multiple states face a maze of different approval processes, each with its own timeline.
4. More Review Time: Since the Great Recession, we've seen the impact of a labor shortage compound. By the time the global pandemic hit, not only were there are now fewer experienced city reviewers, but it was also extremely hard to get ahold of them. The result is that review times are longer than ever. In 2024 it's easy to wait 4-8 weeks for a comment letter.

This has led to a scenario where permitting has become the single biggest bottleneck in project timelines.

A path forward: how technology can help

So how do we fix this? The solution isn’t just in overhauling the way cities manage permitting but also in empowering project teams to adapt and speed up their own processes. Here are three key areas where project teams can make improvements today:

1. Making Local Requirements More Accessible: A centralized platform that aggregates local permitting requirements could save teams countless hours. Today, a platform like Pulley enables you to see exactly which permits and submittal items are required for your project as well as forecast the time to approval. Looking to the next few years, what if we could generate a preliminary due diligence report on a site just by analyzing the the project data you already have stored in tools like Procore or Autodesk. Advances in computer vision and data integration could allow for this kind of transparency, helping project teams avoid costly mistakes.
2. Speeding Up the Submittal Process: Today, many project teams still manage the permitting process manually, increasing the risk of missed deadlines and forgotten steps. By using specialized permit management tools—like the one we’ve built at Pulley—teams can assign tasks, set deadlines, and ensure accountability throughout the permitting process. Additionally, generative AI technologies are being developed to help architects and engineers prepare complete, code-compliant drawing sets faster than ever before.
3. Accelerating Code Review: The plan review process is often the longest part of permitting, with drawings going through multiple rounds of review and revision. Everyone has to go through plan review once, but no one has to go through five times. The best way to reduce rounds of revisions and time spent waiting for reviewers is to submit great plans. Upcodes has already made it easy to search and interpret the building code and new tools, such as AI-assisted code checking, are already in the works. If software could flag potential code issues to architects or city staff we could reduce the time it takes to scrub a 50 page permit package to just a few minutes.

The future of permitting: A faster, smarter decade ahead

We are on the cusp of a breakthrough in permitting efficiency. By leveraging technology, we can streamline the process, reduce the number of resubmissions, and make it easier for teams to break ground on time.

While there’s no silver bullet to solving the permitting puzzle, by embracing technology, we can make the 2020s the first decade in over a century where permitting gets faster, not slower.

To learn more, see a demo. Questions? Email hello@withpulley.com.