RMO World – Issue 42: April 2025 Spring Edition

Spring has arrived, and with it, a surge of activity in California’s construction industry. As the weather warms, projects delayed by winter rains are breaking ground, and new developments are emerging across the state.

Residential construction is seeing a notable uptick, driven by persistent housing demand. From single-family homes in burgeoning suburbs to multi-unit complexes in urban centers, builders are working to address California’s housing crunch. Simultaneously, infrastructure projects, including highway expansions and bridge repairs, are ramping up, aiming to improve transportation networks.

Commercial construction is also experiencing a revival. Retail spaces, office buildings, and industrial warehouses are progressing, reflecting a renewed optimism in the state’s economy. However, challenges persist. Material costs and labor shortages continue to impact timelines and budgets.

Despite these hurdles, the spring season brings a sense of momentum to California’s construction landscape. With longer daylight hours and favorable weather, contractors are maximizing productivity, laying the groundwork for a busy and productive summer.

Tell us about your spring construction!

When removing debris after a disaster, the Contractors State License Board (CSLB) urges property owners to be cautious and make sure that anyone who offers to assist after a disaster is licensed in the appropriate classifications.

The key is to avoid rushing into any agreement with contractors until you have verified their qualifications with CSLB and their work through recommendations from others who have previously contracted with them. Construction work that costs $1,000 or more in combined labor and materials must be performed by a licensed contractor. Any project requiring permits or workers needs to be performed by a licensed contractor regardless of cost.

Consumers should be aware of options for debris removal before making a decision, including checking with their city/county building department to see if there are any government-funded debris removal programs available.

A structured debris removal process is divided into two main phases:

Phase 1: Hazardous Material Removal

This phase involves the U.S. Environmental Protection Agency (EPA) removing potentially dangerous everyday products like paint, cleaners, solvents, oils, batteries, and pesticides from properties affected by fires. This service is provided at no cost to property owners and is a prerequisite for Phase 2.

Phase 2: Debris Removal and Cleanup

After Phase 1 clearance, property owners have two options for Phase 2:

1. Opt-In to the Government-Run Debris Removal Program: By completing a Right of Entry (ROE) form, property owners can authorize the U.S. Army Corps of Engineers to access their property and conduct debris removal at no out-of-pocket cost.

2. Opt-Out and Manage Cleanup Independently: Property owners may choose to hire specialized contractors to remove the remaining fire debris, following all necessary requirements, rules, and regulations. An approved Opt-Out Application and an Opt-Out Fire Debris Removal permit are required before commencing debris removal.

Opt-Out Fire Debris Removal in Los Angeles County

Property owners who opt-out of the government-run debris removal program must use appropriately licensed contractors for any fire debris removal. Los Angeles County will only issue an Opt-Out Fire Debris Removal permit to a contractor that holds the CSLB Hazardous Substance Removal Certification, and one of the following contractor license classifications: (A) General Engineering, (B) General Building, or (C-12) Earthwork and Paving AND (C-21) Building Moving/Demolition.

The licensed prime contractor for the Opt-Out Fire Debris Removal permit performing debris removal must meet other requirements as an employer, such as ensuring employees have the required Hazardous Waste Operations and Emergency Response (HAZWOPER) training.

More details can be found on the CSLB Disaster Help Center or LA County Recovers website.

In a disaster area, it’s a good idea to check with your local building department for any additional permit requirements or guidelines.

California’s construction industry is experiencing a dynamic period in 2025, marked by growth, legislative reforms, and ongoing challenges.

Growth and Projections

The residential construction sector is poised for significant expansion, with starts projected to increase by 12% to $441 billion. This includes a 9% rise in single-family projects and a 16% surge in multi-family developments. Non-residential construction is also expected to grow by 6%, reaching $467 billion, driven by a 7% uptick in commercial projects and a 9% boost in manufacturing initiatives.

Legislative Reforms

To address the state’s housing crisis, California legislators are considering significant reforms to the California Environmental Quality Act (CEQA). Assembly Bill 609 proposes exempting most urban housing projects from CEQA’s environmental reviews, aiming to expedite development. While proponents argue this will streamline housing construction, opponents express concerns about potential environmental impacts and reduced community input.

Challenges

Despite positive projections, the industry faces hurdles. Economic uncertainties, supply chain disruptions, and labor shortages continue to impact project timelines and costs. Additionally, new tariffs on imported construction materials, including steel and copper, could introduce further volatility and increase expenses.

Innovations in Resilience

In response to escalating wildfire risks, builders are prioritizing fire-resilient designs. For instance, KB Home has unveiled a wildfire-resilient neighborhood in Escondido, incorporating fire-resistant materials and strategic landscaping to mitigate fire hazards.

Overall, California’s construction landscape in 2025 so far reflects a balance of opportunities and challenges.