Contractor pays for Building Permits?
Hello all! So I have A201 in front of me right now and I see that in 3.7 it very clearly states "Contractor shall secure and pay for the building permit as well as for other permits, fees..." etc.
However, in B101 11.8, "permitting and other fees required by authorities having jurisdiction over the Project" is listed as a reimbursable expense for Architects. Can anyone explain this distinction?
I've always gotten mixed up on these questions because in my experience working with a small residential firm, we get billed by the Building Department for the permit fee and either have our client reimburse or have our clients pay for the permit fee directly.
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Hi Janet.
Can be confusing. Also depends on wether A101 or A101 & B101 are being used with A 201. Meaning if the owner is only dealing with a contractor or with both Architect and Contractor. In a typical DBB (B101) Architect applies for permits and fronts the cost. Then the GC pulls permit. GC also pays and secures relevant permits for construction. Hopes this helps. -
Janet,
Couple of pointers for you here:
1) The question you get on the ARE will very specifically say "per which document" they are referencing. It will say something to the effect of "per A201, who is responsible for paying the building permit fees?"
2) Your comment about architect's sometimes paying fees, and them being reimbursable expenses, is not necessarily contradictory to A201. It's simply laying out for us architects that, if in the event the owner asks US to cover these costs and not the contractor, these would be reimbursable expenses. I would also note for you that I've been doing commercial architecture for 16 years, and in my experience we rarely pay for the actual building permit, but, we very often pay the plan permit review fees, the zoning review fees, planning commission fees, etc. - all the fees associated with the city's review of the project. But then once the actual permit is approved and ready to be picked up, the contractor is the one who's gone down there to get it and pay for it. Thus, there are other fees that could fall into the category of reimbursable expenses that are involved with getting a building permit. Those are quite often the ones that B201 is referring to. That document is just covering us for if/when the owner wants us to pay for those.
That's just my experience, and certainly you're not being tested on Dave Kaplan's architectural experience. This is why you should focus on #1 above - pay attention to what document they tell you to reference, and just read the wording in the question. You should be fine.
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I would like to add to what David pointed out.
Normally, it is the owner who pays the cost of acquiring the "Building Permit." The permit cost is included sometimes in the architects' contract with the owner and if it exceeds, it will be charged as re-imburseables or sometimes the payment is directly coming from the owner.
Once the contractor received the approved building permit, the contractor pays for "Trade Permits", i.e, electrical, mechanical, plumbing, structural and so on.
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