Pricing permits into your bids: a contractor's checklist
Permit fees, inspection scheduling, and re-inspection risk all affect your bottom line. Here is how to account for them in every bid.
Permits are not optional costs
When a project requires a permit, the cost is not just the fee at the counter. It includes the time to pull the permit, schedule inspections, wait for the inspector, and potentially re-schedule if something fails.
Contractors who ignore these costs eat them out of their margin. Contractors who price them in win the same jobs at a sustainable profit.
What to include
1. Permit application fees
Every jurisdiction publishes a fee schedule. In North County San Diego, fees vary by city:
- Oceanside: Fees based on project valuation. Call (760) 435-3958 or check the City of Oceanside Building Division website.
- Carlsbad: Similar valuation-based fees. Call (760) 602-2719.
- Escondido: Call (760) 839-4647.
- Unincorporated areas (Fallbrook, Ramona, Rancho Santa Fe): County of San Diego PDS, (858) 565-5920.
Always confirm current fees directly with the authority having jurisdiction (AHJ). Fees change, and online schedules can be outdated.
2. Plan review time
Some permits require plan review before issuance. This can take days or weeks depending on the jurisdiction and the project complexity. Factor this into your timeline and your carrying costs.
3. Inspection scheduling
Most permitted work requires at least one inspection, often multiple. Each inspection means someone needs to be on site, and the work must be at the correct stage.
Build inspection wait time into your project schedule. If you are running multiple jobs, inspection delays on one can cascade to others.
4. Re-inspection risk
If an inspection fails, you fix the issue and schedule a re-inspection. Some jurisdictions charge a re-inspection fee. More importantly, it adds time.
A 5% contingency on inspection-related delays is reasonable for most residential projects.
5. Permit-exempt work
Not everything requires a permit. Generally, cosmetic work (painting, flooring, minor repairs) does not. Structural, electrical, plumbing, and mechanical work almost always does.
When in doubt, call the AHJ. An unpermitted job that should have been permitted creates liability for both the contractor and the homeowner.
Putting it together
Here is an illustrative example for a bathroom remodel in Carlsbad with plumbing and electrical (example figures only; get current fees from the city):
| Item | Cost | |------|------| | Permit fees (plumbing + electrical) | $600 | | Plan review time (1 week delay) | $0 direct, schedule impact | | Inspection scheduling (3 inspections) | Built into labor days | | Re-inspection contingency (5%) | $30 | | Total permit-related cost | $630 |
On a $20,000 job, that is about 3% of the contract price. Miss it, and your margin shrinks by 3 points.
The bottom line
Every bid should include a line item (even if internal) for permit-related costs. When you price permits into your sealed bids, you protect your margin and set accurate expectations for the homeowner.