EstatePass
Business & FinanceRegulationsmedium15% of exam part

A building permit for a $800,000 commercial addition expires before construction is complete. The permit fee was $4,500. What is the typical renewal fee in most Florida jurisdictions?

Correct Answer

C) 50% of original fee ($2,250)

Most Florida jurisdictions charge 50% of the original permit fee for renewal of an expired permit, provided the renewal is requested within a specified timeframe (usually 180 days). This encourages timely completion while allowing for project extensions.

Answer Options
A
25% of original fee ($1,125)
B
100% of original fee ($4,500)
C
50% of original fee ($2,250)
D
75% of original fee ($3,375)

Why This Is the Correct Answer

Florida building codes and most local jurisdictions establish a standard 50% renewal fee for expired building permits. This fee structure balances the administrative costs of permit renewal with the need to encourage timely project completion. The 50% rate is widely adopted across Florida municipalities and is considered the industry standard for permit renewals within the allowable timeframe.

Why the Other Options Are Wrong

Option A: 25% of original fee ($1,125)

75% is higher than the typical renewal fee and would be punitive rather than encouraging timely completion

Option D: 75% of original fee ($3,375)

25% is too low and not the standard rate used by most Florida jurisdictions for permit renewals

Memory Technique

Think 'Half-time renewal' - when your permit expires, you pay half to get back in the game

Reference Hint

Florida Building Code Chapter 1 - Administration, Section on Permits and Fees

Was this explanation helpful?

More Business & Finance Questions

A general contractor purchases equipment worth $45,000 with a useful life of 9 years and no salvage value. Using straight-line depreciation, what is the annual depreciation expense?

What is the typical recommended coverage amount for general liability insurance for a small to medium-sized general contracting business?

A contractor estimates startup costs of $75,000 for equipment, $25,000 for initial inventory, $15,000 for insurance premiums, and $10,000 for working capital. They can finance 70% of the total. How much cash do they need?

When establishing professional relationships with architects and engineers, what is the most important factor for a general contractor to consider?

A partnership agreement for a construction company should address all of the following EXCEPT:

A contractor purchases a truck for $60,000. After 5 years, it has accumulated depreciation of $35,000. What is the truck's book value?

A contractor's business plan projects first-year revenue of $500,000 with a 15% net profit margin. If actual revenue is $450,000 with the same profit margin, what is the variance in net profit?

Using the Modified Accelerated Cost Recovery System (MACRS), construction equipment is typically depreciated over how many years?

A contractor is comparing financing options for equipment purchase. Option A: $80,000 cash purchase. Option B: $20,000 down, $65,000 financed at 6% for 4 years. What is the total cost of Option B?

A contractor purchases equipment using a capital lease with a present value of $120,000. How should this be recorded on the balance sheet?

People Also Study

Related Study Resources

Practice More Contractor Exam Questions

Access all practice questions with progress tracking and adaptive difficulty to pass your Florida General Contractor exam.

Start Practicing

Disclaimer: EstatePass is an independent exam preparation platform and is not affiliated with, endorsed by, or connected to any state contractor licensing board, the Construction Industry Licensing Board (CILB), the Department of Business and Professional Regulation (DBPR), NASCLA, Pearson VUE, PSI, or any government agency. Exam requirements, fees, and regulations change frequently. Always verify current requirements with your state's licensing board before making decisions. Information shown was last verified on the dates indicated and may not reflect the most recent changes.