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Understanding Building Permit Fees: Breaking Down Submission Costs

Britain Jacobson

Britain Jacobson

Last updated:

Oct 25, 2024

Published:

July 25, 2024

Reading time:

4

minutes

Submitting a building permit to the government involves various costs. The expenses can be influenced by numerous factors, each contributing to the overall fee. In this article, we’ll explore these factors and explain what your building permit fees cover.

What is a building permit?

A building permit is an official government document granting approval from the government to create a new structure or renovate an existing structure. Local governments require building permits to help ensure that buildings are safe and secure for any occupants. 

Local governments create permits to help uphold legislation intended for the safety and security of residents. In addition to ensuring the consistency of builds and safety, building permits help the government track important data regarding construction, housing, and infrastructure data.  

Permit fees cover administrative costs and compensate officials involved in processing permits. They also fund government resources such as water and electricity infrastructure related to the project.

The different components of permitting fees

When you submit a building permit, a fee is necessary to ensure the implementation of the permitting process. Those fees cover a variety of uses including:

  • Application fees: These fees are associated with the administration and submission of the permit application.
  • Review fees: These cover the costs incurred for the review of plans by building officials and engineers. 
  • Inspection fees: Charges for on-site inspections during and after construction.
  • Impact fees: Fees related to the impact of the new construction on public infrastructure and services.
  • Permit issuance fees: Final fees for the actual issuance of the permit.

Factors influencing permit costs

The final amount associated with your building permit is associated with various factors. Similar to how the size of your project influences what materials and resources you’ll need, this logic translates to your building permit submission.

Below are some of the major factors that ultimately influence the cost of your final building permit: 

  • Project size and scope: Larger, more complex projects require more resources, resulting in higher fees.
  • Location: Permit costs vary based on local regulations. Renovations might replicate previous permits, while new builds in rural areas may need new documentation.
  • Type of construction: Different projects have different costs—the needs of a residential build are different from the needs of a commercial build.
  • Valuation of the project: The estimated total cost, including labor and materials, often correlates with permit costs to maintain consistency.
  • Special requirements: Projects with environmental or other special requirements may incur additional fees based on local legislation.

How to calculate permit costs

If you’re looking to get an estimate for how much a specific permit will cost, the best place to start is with the local government you’re looking to file in. Their individual websites will have information on what you will need a permit for, estimated costs, and how to best submit your building permit. 

For more information on your local legislation, check out PermitFlow’s Municipal Guides.

The best way to clarify your permit costs and manage multiple permit submissions at once is by using a permit management tool like PermitFlow. Using PermitFlow to manage permits and submit information keeps all of your information in one place, so you know when to submit fees without delaying the submission process.

4 ways to manage and reduce permit costs

Your construction project is already costly—the last thing you want to add to your total is unexpected permit costs. The good news is there are a handful of strategies you can implement to avoid surprise permit costs.

Here are a few strategies you can take to manage and reduce your building permit costs:

  1. Accurate permit submissions: Submitting information that doesn’t need costly revisions or resubmissions is the most important way to avoid surprise fees. Avoid inaccurate submissions by using permit management software like PermitFlow to keep submission files on track.
  2. Accurate valuation: Providing an accurate valuation is the best way to ensure that permit fees stay aligned with the cost of your build.
  3. Streamlined processes: Streamlining the permit submission process can help you avoid resubmissions and delays in your project that ultimately turn into unexpected costs. Using a more streamlined process can help mitigate those costs and prevent mistakes during the submission process.
  4. Negotiating fees: Not all fees are a set price. Work with your local government official to see what fees are absolutely necessary, and which ones you can work to reduce or get rid of entirely.

Hidden costs and surprises

While you can do what you can to avoid any additional fees or costs, sometimes surprise fees arise and add cost to your process. We’ve compiled a few potential surprise costs that could occur during the permit submission process.

  • Time costs: Delays in responses, initial fee submissions, or reviews could impact the final fee. The best way to avoid this is by responding promptly to avoid unexpected delays due to inaction.
  • Revisions and corrections: Revisions or corrections require additional review from experts and other departments. The more revisions required, the more work and review the government has to do. This means additional costs and fees, and a potential delay to your project timeline. 
  • Additional department fees: If your project requires input from several different departments, this could impact the final amount of your permit fee. The best way to avoid this is to go into the submission process knowing what departments require input on your submission, and how they’re going to review it.

Manage permits and mitigate fees with PermitFlow

Avoid confusing municipal websites and clarify the building permit submission process with PermitFlow. With end-to-end permit management software, your team can save time, reduce errors, and increase transparency in the submission process. 

Interested in learning more? Talk to one of our experts and see how your team can implement PermitFlow into your process.

Submitting a building permit to the government involves various costs. The expenses can be influenced by numerous factors, each contributing to the overall fee. In this article, we’ll explore these factors and explain what your building permit fees cover.

What is a building permit?

A building permit is an official government document granting approval from the government to create a new structure or renovate an existing structure. Local governments require building permits to help ensure that buildings are safe and secure for any occupants. 

Local governments create permits to help uphold legislation intended for the safety and security of residents. In addition to ensuring the consistency of builds and safety, building permits help the government track important data regarding construction, housing, and infrastructure data.  

Permit fees cover administrative costs and compensate officials involved in processing permits. They also fund government resources such as water and electricity infrastructure related to the project.

The different components of permitting fees

When you submit a building permit, a fee is necessary to ensure the implementation of the permitting process. Those fees cover a variety of uses including:

  • Application fees: These fees are associated with the administration and submission of the permit application.
  • Review fees: These cover the costs incurred for the review of plans by building officials and engineers. 
  • Inspection fees: Charges for on-site inspections during and after construction.
  • Impact fees: Fees related to the impact of the new construction on public infrastructure and services.
  • Permit issuance fees: Final fees for the actual issuance of the permit.

Factors influencing permit costs

The final amount associated with your building permit is associated with various factors. Similar to how the size of your project influences what materials and resources you’ll need, this logic translates to your building permit submission.

Below are some of the major factors that ultimately influence the cost of your final building permit: 

  • Project size and scope: Larger, more complex projects require more resources, resulting in higher fees.
  • Location: Permit costs vary based on local regulations. Renovations might replicate previous permits, while new builds in rural areas may need new documentation.
  • Type of construction: Different projects have different costs—the needs of a residential build are different from the needs of a commercial build.
  • Valuation of the project: The estimated total cost, including labor and materials, often correlates with permit costs to maintain consistency.
  • Special requirements: Projects with environmental or other special requirements may incur additional fees based on local legislation.

How to calculate permit costs

If you’re looking to get an estimate for how much a specific permit will cost, the best place to start is with the local government you’re looking to file in. Their individual websites will have information on what you will need a permit for, estimated costs, and how to best submit your building permit. 

For more information on your local legislation, check out PermitFlow’s Municipal Guides.

The best way to clarify your permit costs and manage multiple permit submissions at once is by using a permit management tool like PermitFlow. Using PermitFlow to manage permits and submit information keeps all of your information in one place, so you know when to submit fees without delaying the submission process.

4 ways to manage and reduce permit costs

Your construction project is already costly—the last thing you want to add to your total is unexpected permit costs. The good news is there are a handful of strategies you can implement to avoid surprise permit costs.

Here are a few strategies you can take to manage and reduce your building permit costs:

  1. Accurate permit submissions: Submitting information that doesn’t need costly revisions or resubmissions is the most important way to avoid surprise fees. Avoid inaccurate submissions by using permit management software like PermitFlow to keep submission files on track.
  2. Accurate valuation: Providing an accurate valuation is the best way to ensure that permit fees stay aligned with the cost of your build.
  3. Streamlined processes: Streamlining the permit submission process can help you avoid resubmissions and delays in your project that ultimately turn into unexpected costs. Using a more streamlined process can help mitigate those costs and prevent mistakes during the submission process.
  4. Negotiating fees: Not all fees are a set price. Work with your local government official to see what fees are absolutely necessary, and which ones you can work to reduce or get rid of entirely.

Hidden costs and surprises

While you can do what you can to avoid any additional fees or costs, sometimes surprise fees arise and add cost to your process. We’ve compiled a few potential surprise costs that could occur during the permit submission process.

  • Time costs: Delays in responses, initial fee submissions, or reviews could impact the final fee. The best way to avoid this is by responding promptly to avoid unexpected delays due to inaction.
  • Revisions and corrections: Revisions or corrections require additional review from experts and other departments. The more revisions required, the more work and review the government has to do. This means additional costs and fees, and a potential delay to your project timeline. 
  • Additional department fees: If your project requires input from several different departments, this could impact the final amount of your permit fee. The best way to avoid this is to go into the submission process knowing what departments require input on your submission, and how they’re going to review it.

Manage permits and mitigate fees with PermitFlow

Avoid confusing municipal websites and clarify the building permit submission process with PermitFlow. With end-to-end permit management software, your team can save time, reduce errors, and increase transparency in the submission process. 

Interested in learning more? Talk to one of our experts and see how your team can implement PermitFlow into your process.

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