Why Are Utilities Always the Last Thing You Hear About and the First Thing That Delays Your Project?
ASK:
We got through planning approvals, but now the utility company is holding us up. How can I avoid this on the next deal?
ANSWER:
Utilities are one of the most common (and expensive) sources of surprise delays in development. And yet, they’re often treated as an afterthought. Something to “figure out later” once planning is approved.
That’s a mistake.
At I&D Consulting, we treat dry utilities—electric, gas, telecom—not as a final step, but a front-end priority. Why? Because we’ve seen what happens when you don’t.
Take the PG&E easement issue we shared recently:
The utility company never secured an easement for their primary line across the street. Tapping into it would’ve saved the project. Without it? Our project was facing over $1M in infrastructure costs that would’ve killed the deal.
That project got saved, but only because we know how to navigate these issues:
- We found the landowners (an elderly couple mid-divorce)
- Brought them together through their daughter
- Sat down in person
- Got the easement signed and recorded
No amount of entitlement momentum would’ve solved that without strategic utility coordination.
Our Process for Solving This Up Front:
Before a shovel hits the ground, we identify:
- Which utility providers serve the site
- Where access points, infrastructure, or easements exist or don’t
- What fees, connection timelines, or design approvals are required
- Who the contacts are (and how responsive they’ll be)
- Whether utility work needs to be phased or coordinated with public agencies
We build utility timelines directly into the development schedule so approvals, easements, and design reviews move in parallel with planning, not after it.
KEY TAKEAWAYS:
- Utilities should be scoped during feasibility not after entitlements
- Never assume access, capacity, or easements are in place. Even on “infill” sites
- Utility delays can cost more than any other phase of development. Build them into your early strategy
People Also Ask
1) What are “dry utilities” in development?
Dry utilities include electric, gas, telephone, cable, and internet infrastructure. Unlike “wet” utilities (water, sewer, storm), dry utilities often involve private companies with long lead times and separate design approvals.
2) How early should I engage utility providers?
We recommend engaging dry utility providers during feasibility or schematic design. Waiting until construction docs are complete is often too late. Especially in areas with capacity issues or long design cycles.
3) What happens if a utility easement is missing?
Your project can stall completely or require costly redesigns. Securing or confirming easements should always be part of early due diligence. At I&D, we identify these risks early and negotiate solutions before they become showstoppers.
