The BC Energy Step Code has changed how multi-family buildings are designed and built across the province, and Kelowna is no exception. For developers and property owners planning a townhouse or apartment project in the Okanagan, understanding the Step Code early is one of the most effective ways to protect your budget and schedule.

What Is the BC Energy Step Code?
The BC Energy Step Code is a provincial standard that sets measurable energy performance targets for new buildings. Rather than prescribing specific materials, it asks the design and construction team to meet performance outcomes for airtightness, thermal efficiency and overall energy use. Each step is a higher level of performance, and local governments decide which step applies to projects in their jurisdiction. In practice, this means two projects on opposite sides of the Okanagan can face different energy targets, even when the buildings are nearly identical.
For most multi-family projects, the Step Code is built into the building permit process. That means energy modelling and air leakage testing are not optional extras, they are conditions of getting your building approved and occupied.
How Step Code Requirements Differ by Building Type
Wood-frame residential buildings of up to six storeys fall under Part 9 or Part 3 of the BC Building Code, and the Step Code targets differ between the two. Smaller townhouse projects are typically measured against a different set of metrics than a mid-rise apartment building. Knowing which part of the code applies to your project determines which targets your design team must hit.
Municipalities across the Okanagan and Vancouver Island have adopted different step levels, and the requirements continue to move upward over time. A project that was straightforward to permit a few years ago may now require a more efficient envelope and better mechanical systems, so confirm the current local requirement before finalizing a pro forma.
How the Step Code Affects Construction Cost
Higher steps generally mean more insulation, better windows, a tighter air barrier and more efficient heating and ventilation equipment. These upgrades add to hard costs, but the premium is often smaller than owners expect when the building is designed for the target from day one. The expensive path is discovering mid-design that the envelope will not hit its number and reworking drawings already submitted to the city.
Careful trade-off analysis can keep costs in check. A structured value engineering review helps identify where the same energy performance can be achieved with a simpler assembly or a smarter mechanical strategy, without sacrificing quality or long-term operating savings. Lower utility costs and more comfortable suites also make the finished building easier to lease or sell, which strengthens the return on the added investment.
Why Early Energy Modelling Matters
Energy modelling should begin during schematic design, not after the drawings are complete. Early models let the design team test window sizes, wall assemblies and building orientation against the Step Code target while changes are still inexpensive. This is one of the clearest examples of why decisions made before construction starts have the biggest influence on final cost.
Airtightness is the other area where early planning pays off. Air leakage testing happens late in the project, so the trades who install the air barrier, windows and penetrations need clear expectations from the start. Sequencing and quality checks during framing and envelope work prevent expensive remediation at the testing stage.
Planning a Multi-Family Project Around the Step Code
The most successful projects treat the Step Code as a design driver rather than a compliance hurdle. Owners should bring the construction manager, architect and energy advisor together early, confirm the local step requirement, and carry realistic energy upgrade costs in the budget from the first estimate. Our multi-family construction experience across the Okanagan shows that early coordination keeps projects on schedule.
Developers who are still assessing feasibility benefit from guidance before land is purchased or designs are locked in. Our development management services help owners understand regulatory requirements, cost implications and timelines at the stage when those insights matter most.
How Team Construction Approaches the BC Energy Step Code
We build Step Code requirements into estimating, scheduling and trade coordination from the first design meeting, so energy targets are met without surprises at inspection or testing. If you are planning a multi-family project in Kelowna or the surrounding region, contact our team to talk through your approach.