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Project Managementaka: permitaka: construction permit

Building Permit

In Plain English

The official government approval required before construction can legally begin.

Definition

A building permit is an official approval issued by a local government authority that authorizes construction, alteration, demolition, or repair of a building or structure. The permit process ensures that work complies with adopted building codes, zoning ordinances, and health and safety regulations. A permit is required before work begins and is closed out through inspections that verify code compliance.

Why It Matters in Bidding

Permit cost, fees, and approval timelines feed directly into a bid's general conditions and schedule, and an unissued permit blocks the notice to proceed that lets billing begin. Estimators who underestimate plan-check duration or fail to assign permit responsibility in the scope risk schedule slippage and disputes over who absorbs delay costs.

Example

The building permit was issued six weeks after plan check approval, and the GC posted it visibly at the job site entry.

Related Terms

Certificate of OccupancyInspectionFinal InspectionNotice to Proceed

Frequently Asked Questions

Most contracts assign permit pulling to the general contractor, who is typically the licensed party the jurisdiction holds accountable for code compliance. Some owners pull permits directly to retain control. The bidding documents should specify responsibility, since the party that pulls the permit often carries liability for inspections and corrections.
Permit and plan-check fees are commonly scaled to construction valuation, so they rise with project size and can reach thousands of dollars on large jobs. Estimators list them as a line item in general conditions or as an owner allowance, because guessing wrong erodes margin or triggers a change order dispute.
Building without a required permit can trigger stop-work orders, double or penalty fees, mandatory exposure of covered work for inspection, and refusal to issue a certificate of occupancy. Unpermitted work also creates liability and resale problems for the owner, so reputable contractors never begin permitted scope before the permit is in hand.

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