Why Building Permits Matter

We ensure that all safety procedures are carried out as required by the permits. Furthermore, construction permits ensure compliance with building codes and regulations. These codes are established to safeguard the structural integrity, fire safety, and accessibility of buildings.

A building permit is the official written authorization from the relevant City authority that a construction project may begin. For example, the City of Los Angeles requires a permit for any private property construction and/or alteration and, in many cases, even for repair work.

The size and complexity of the proposed work dictate how much information a given City will require before a requested permit will be issued. Small, straightforward projects typically require very little details, while large, complex projects require fully developed plans to be reviewed and ultimately approved by the relevant authority.

Similarly, the cost of a permit is tied to the overall size of the project as it is based upon a small percentage of the total cost of the project. While some homeowners and/or contractors feel “pulling a permit” causes unnecessary delays to their project as well as increased costs, it is in their best interest to do so.

For instance, obtaining a building permit allows the City to confirm the proposed work to be performed is in conformance with all applicable building codes and standards. As part of that process, City inspectors will periodically visit the project site to ensure that the work is, in fact being, performed correctly.

For obvious reasons, it is much better to discover and correct any construction related errors while work is ongoing rather than after it has been completed and/or covered up.

Additionally, should a homeowner desire to sell his or her home in the future, making sure all work was performed pursuant to a permit ensures the homeowner can maximize the value of their home. Conversely, if it is disclosed to potential buyers that there exists unpermitted work on the property that typically causes the potential buyers to provide significantly lower purchase offers. This is due to the fact that City officials can and often do require the purchaser to bring the un-permitted work commissioned by the previous homeowner “up to code.”

When the prior homeowner does not disclose that there was unpermitted work performed on the property and the new homeowner later discovers it, such a scenario often results in expensive litigation that requires the previous homeowner to reimburse the new homeowner for all costs and fees associated with correcting the unpermitted work.

The relatively small amount saved on permit fees is typically eclipsed by the liability imposed on the prior homeowner for not having the work performed the right way the first time around.

It might seem like a lot of legwork to make sure you have the proper permits in place before, during, and after construction. But taking care of the permits right away can save a lot of hassle down the road. Unapproved constructions, or work completed by contractors who don’t have the proper permits, can actually decrease the value of your home.

Not only that, your property taxes are generally based on the value of the improvements made to the land, failure to get the appropriate permits can leave you on the hook for unpaid property taxes later on.

So, as you can see, permits can have a big impact on your finances if you ignore them.

For example, if you don’t have an electrical permit on file for any electrical modifications in your home, you couldn’t collect insurance if the cause of a fire is determined to be non-permitted work. Permits help when it’s time to sell since potential homebuyers will want to be sure the appropriate permits exist for any modifications or additions to the home.

Most importantly, building codes and permits are put in place for your health and safety. They set forth minimum requirements for the types and sizes of materials to be used to meet safety standards.

These are all really important reasons why the permitting process works in your favor. If you’re hiring a contractor to build your addition, then ensuring that your builder is working with the necessary permits is a pretty great clue that they’re a legit company doing quality work. Win-win!

If you’re making significant changes to your home, you need to have permits, as well as all the proper building inspections during the process and at the project’s completion. In addition to the traditional building permit, which gives you and/or the contractor the permission to build or add onto the home, each specialty trade, such as HVAC, electrical, or plumbing, has its own permit. Before building a home addition, brush up on the required permits.

If the system seems like a confusing web of applications and inspections, you’re right. That’s why we don’t recommend doing it yourself. Keep in mind that “the one who pulls the permit is responsible for the work.”

That means if you pull the permit yourself, or if your contractor pulls it in your name, then YOU are responsible for the work, even if you didn’t do it. This leaves lots of room for error on the contractor’s part, and some contractors may not accept responsibility for mistakes.

For that reason, you should hire an experienced, locally licensed contractor who does quality work and knows the system. The two keywords here are “experienced” and “local.”

Just as a certified public accountant or a lawyer has to pass an exam and prove their qualifications, a properly licensed contractor has to have certain qualifications to pull a permit. These include having a master technician on the team and meeting selected screening qualifications.

Local means hiring a contractor who works frequently in your municipality. Permit and building requirements vary from town to town.