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How do you build permit costs into a contract?

Short answer. Include permit costs in the estimate and the contract so the price is transparent. Whoever pays the fees, COMAR 09.08.01.08 makes securing the permits your duty as prime contractor.

  • COMAR 09.08.01.08

Work it through

You're the contractor. Pick what you'd do, then see how each choice plays out.

Dave Kowalski

Homeowner who wants a deck and basement finished fast

Dave calls back a week later. "Alright, fine. My wife looked it up and you're right about the permits. Let's do this the right way. But I still want a good price."

He's ready to sign a proper contract.

  1. Excellent

    By educating the client and then following through with a proper contract, you've turned a risky situation into a solid job. Including permit costs in the estimate is transparent and professional. Remind Dave: permitted work means inspected work, which means warranty-backed, code-compliant construction that adds real value to his home.

  2. Risky

    While not strictly illegal, separating permit costs can create confusion about who's responsible for pulling and paying for permits. Under COMAR 09.08.01.08, the duty to secure permits is yours as prime contractor regardless of who pays the fees. Better to include everything in one transparent estimate.

All 26 permits, inspections & building codes questions

  1. Who is responsible for permits on a Maryland home improvement job?
  2. Can you skip permits if the homeowner asks you to?
  3. How do you build permit costs into a contract?
  4. Which home projects need a permit in Maryland?
  5. Do cosmetic bathroom refreshes in rentals need permits?
  6. What happens when an inspector finds work without a permit?
  7. What is your liability when unpermitted work fails?
  8. How should you handle a problem the inspector finds?
  9. Why do building inspections happen in stages?
  10. How do you get a building permit approved faster?
  11. Where is fire blocking required under IRC R302.11?
  12. When does a basement bedroom need an egress window?
  13. Where are smoke alarms required after a renovation?
  14. Can a homeowner refuse GFCI outlets in the kitchen?
  15. When does a deck stairway need a handrail?
  16. Does a bathroom need an exhaust fan under the IRC?
  17. How must a deck ledger be attached to the house?
  18. How is energy code compliance checked on an addition?
  19. Does the ADA apply to a single-family bathroom remodel?
  20. When does a retaining wall need an engineered design?
  21. What is required before removing a load-bearing wall?
  22. Can you build a deck over a utility easement?
  23. When does a patio trigger stormwater management in Maryland?
  24. Does a building permit override HOA approval?
  25. How do you take over a job another contractor abandoned?
  26. How do you assess a homeowner's failed DIY renovation?