Current construction fees do not fit into circular construction economy

Circular construction is becoming the starting point. From 2023, for example, the government's requests for proposals will in principle be 100% circular. By 2050, the entire (construction) economy should be circular. By 2030, that should be 50%. Although the government has formulated clear ambitions, it must be noted at the same time that many municipalities still have a world to win in order to gear their building regulations to circular construction.

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Construction cost levy measure dues

Construction fees are generally based on construction costs. Those construction costs are determined in various ways, with the ultimate goal being that the construction costs used correspond to an "objective" price that would have to be paid in economic terms.

Classic new construction the benchmark

The problem, however, is that "classic" new construction is still the benchmark when setting construction costs. Many fee ordinances are currently structured in such a way as to assume the use of entirely new materials, with no consideration of circular choices at all when setting for construction costs.

Circular construction can be more expensive or cheaper, but current dues regulations do not take this into account. In the event that circular choices allow you to build cheaper than conventional new construction, it is unpleasant if fees have to be paid for construction costs that were never incurred. In case you have a more expensive building plan due to circular construction and then have to pay fees on the extra cost as well, you are in fact punished for the more sustainable choices. These are undesirable consequences of the current practice for construction fees.

Illustrative, for example, is the ruling with number ECLI:NL:RBDHA:2015:10818. In that case, the applicant had to pay construction fees on the "normal" price in economic terms and the use of second-hand materials was not taken into account.

Designing dues ordinance for circular construction

Circular construction, of course, goes far beyond the use of recycled materials. Circular construction is about using materials that can be reused again relatively easily because they are detachable, or using materials that are biobased, such as wood construction, because those are basically inexhaustible resources. Wood construction, however, is often several percent more expensive. But it is supposed to be more sustainable, so that should be encouraged. Municipalities should get to work on making their permit ordinances circular-building-proof.

GPR score

There are already quite a few municipalities with rebates for construction work for insulation or renewable energy generation. However, charging ordinances that take into account circular construction are still few and far between.

As a (very small) sample, I looked at the dues ordinances of the three largest municipalities. What then stands out is that the fees regulations of Rotterdam and Amsterdam do not take into account the consequences of circular construction at all. The Rotterdam dues ordinance even literally states that the use of second-hand materials is not taken into account when determining construction costs. Amsterdam does leave out the additional costs of building work for increased sustainability (especially insulating interventions) when setting fees. However, that is not yet circular construction.

There is another way: The fee regulations of the municipality of The Hague now include a regulation that allows a very substantial fee reduction for building plans with a high GPR score. Circular construction is also taken into account when establishing that GPR score. With such a regulation, permit applicants are thus also rewarded for making circular choices in the context of building fees.

Circular construction economy gets underway, now the regulations

Several examples can now be found in practice of initiatives to make circular construction the benchmark. Material passports are being developed so that buildings can be traced to what extent they are detachable and reusable, and there are already circular bricks, for example.

The government should put its money where its mouth is when it comes to building fees and, for example, like the municipality of The Hague, start working on fee regulations that take into account circular construction.

Construction costs in application

It is up to the municipalities to set up their fee regulations for circular construction. This does not alter the fact that an applicant must also think for himself about the application he submits and the construction costs that are specified. After all, when specifying the construction costs, all components and (more luxurious) finishes that do not require a permit can be "crossed out. This is because the fees cannot see to the parts and finishes that the municipality is not required to assess. The drawings accompanying the application must then match what is included in the building costs. Of course, we can advise you on an application to be submitted and the construction costs to be specified.

You can use our tool at the bottom of this page to check whether there is reason to object to a fee bill.