Los Angeles City recently passed an ordinance that can bring up to 1 billion dollars to Los Angeles construction industry. This is a great opportunity for construction contractors and structural engineers.
Los Angeles City recently past Ordinance 183893. This ordinance requires owners of many rental properties to retrofit their apartments and condos to meet higher earthquake safety standards. These apartments and condos were built before 1978, have 4 or more units, have soft-story and wood frame.
Some quick fact:
There are 15,000 buildings that will need retrofit.
1,500 concrete buildings
13,500 apartments/condos. 3,200 out of these 13,500 apartments/condos are in San Fernando Valley.
Here is a ball-park estimate of how much business this seismic safety ordinance brings to Los Angeles contractors:
Retrofit may cost between $60,000 to $130,000 for each apartment.
Take an average of $95,000 per apartment times 13,500, we get about $1.28 billion.
Property owners have a window of 7 years to complete their retrofit.
We can make another rough estimate: $1.28 billion divided by 7 years, equals about $183 million per year.
Though this is just a rough estimation, it shows that there will be a huge market for construction contractors and structural engineers.
Los Angeles City has released a list of buildings that may be subjected to this ordinance.
Click the link below for the list of properties subjected to earthquake safety ordinance.