Why can't I include Permit Fees in a line item?

Posted 3/2/2025

If you do you will have a 10% holdback on it. If you put it in with the other "soft costs" the lender can pay it out to you in full without wasting a draw inspection fee.

Every contractor wants to charge for the time they have to spend waiting in line to get the permit. If the permit costs $100 and it takes you four hours to get it. The lender will only allow you to charge $100 for the permit as that is all it cost you.

What we do to cover the contractor is to include a miscellaneous item in line item 35 of the HUD bid specs that says something like this "Permit processing fee. This is not a permit fee but it is a fee for the time it takes to get the permit, typically for the owner of the company to sit and wait at the building inspection dept to get that permit" and they we allot an amount, then a little more to cover the periodic inspection fees that will be charged during the course of construction. #contractors, #203kconsultants