How building permit fees are calculated (and how to bid them)
Permit fees are one of the most commonly absorbed costs in contracting, usually because nobody looked them up before the number went out.
The standard structure
Most jurisdictions publish a valuation-based schedule: a base fee plus an incremental charge per $1,000 of declared construction value. Plan review is frequently an additional percentage of the permit fee, and state or county surcharges sit on top.
Trade permits are separate
Plumbing, electrical and mechanical permits are often issued separately from the building permit, sometimes on a per-fixture or per-device basis rather than by valuation. Read the schedule before you assume.
Bid it as a line item
Carry permits as a visible allowance rather than absorbing them into markup. If the actual fee comes in higher, an allowance line gives you a clean change order conversation instead of an argument.
Budget for re-inspections
Failed inspections and re-trip fees are a real cost on multi-phase work. A small contingency inside the permit allowance covers the ones you cannot control.
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