A general contractor is building a 12,000 square foot commercial warehouse. The building permit fee is calculated at $8.50 per $1,000 of construction value. If the project value is $2,400,000, what is the building permit fee?
Correct Answer
B) $20,400
The permit fee is calculated as follows: $2,400,000 ÷ $1,000 = 2,400 units. 2,400 × $8.50 = $20,400. This represents the total building permit fee for the commercial warehouse project.
Why This Is the Correct Answer
Option B is correct because the calculation properly converts the total project value into permit fee units and applies the rate. The project value of $2,400,000 is divided by $1,000 to get 2,400 units, then multiplied by the rate of $8.50 per unit. This yields $20,400 as the total building permit fee. The calculation follows the standard formula used by most Florida jurisdictions for permit fee assessment.
Why the Other Options Are Wrong
Option A: $18,400
Option A ($18,400) is incorrect because it appears to use an incorrect rate or miscalculates the number of units. This would result from either using $7.67 per $1,000 instead of $8.50, or from some other computational error in the fee calculation process.
Option C: $22,800
Option C ($22,800) is incorrect because it overestimates the permit fee. This error could result from using a rate of $9.50 per $1,000 instead of the given $8.50, or from incorrectly calculating the number of permit units from the project value.
Option D: $24,600
Option D ($24,600) is incorrect because it significantly overestimates the permit fee. This would result from using approximately $10.25 per $1,000 instead of the correct $8.50 rate, representing a substantial calculation error.
Memory Technique
Remember 'Divide then Multiply' - always divide the project value by 1,000 first to get your units, then multiply by the rate. Think 'D-M' for Dollar calculations.
Reference Hint
Florida Building Code, Chapter 1 - Scope and Administration, Section 109 - Fees, or local jurisdiction fee schedules typically found in municipal building department regulations
More Contract Admin Questions
A project experiences a 30-day delay due to unusually severe weather. The contract includes a liquidated damages clause of $1,000 per day for delays. If the weather delay is excusable but not compensable, what liquidated damages apply?
A commercial project requires a total of 12 inspections. The building department charges $85 per inspection for the first 5 inspections, $65 for inspections 6-10, and $45 for any additional inspections. What is the total inspection fee?
What document must be posted at the job site before a Certificate of Occupancy can be issued for a commercial building?
A mixed-use development requires a variance for reduced setbacks. The property is located within 500 feet of a hospital. What additional consideration must be addressed?
A LEED project requires tracking of regional materials. Materials are considered regional if they are extracted, harvested, or recovered, as well as manufactured within what distance of the project site?
People Also Study
Business & Financial Management
120 questions · 70% to pass
Project Management
60 questions · 70% to pass