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Contract AdminPermitsmedium20% of exam part

A general contractor is building a 3,500 square foot single-family residence. The building permit fee is calculated at $8.50 per $1,000 of construction value. If the construction value is $425,000, what is the total building permit fee?

Correct Answer

A) $3,612.50

The calculation is: $425,000 ÷ $1,000 = 425 units. 425 × $8.50 = $3,612.50. This represents the standard method for calculating permit fees based on construction value.

Answer Options
A
$3,612.50
B
$3,400.00
C
$4,250.00
D
$3,825.00

Why This Is the Correct Answer

The correct answer is A) $3,612.50 because permit fees are calculated by dividing the total construction value by $1,000 to determine the number of fee units, then multiplying by the per-unit rate. With a construction value of $425,000 and a rate of $8.50 per $1,000, this yields 425 units × $8.50 = $3,612.50. This is the standard methodology used by most Florida jurisdictions for calculating building permit fees based on construction valuation.

Why the Other Options Are Wrong

Option B: $3,400.00

Option B ($3,400.00) is incorrect because it appears to use an incorrect rate of $8.00 per $1,000 instead of the given $8.50 rate (425 × $8.00 = $3,400).

Option C: $4,250.00

Option C ($4,250.00) is incorrect because it represents a calculation error of multiplying the construction value by 0.01 instead of the proper permit fee calculation method.

Option D: $3,825.00

Option D ($3,825.00) is incorrect because it appears to use an inflated rate of $9.00 per $1,000 instead of the specified $8.50 rate (425 × $9.00 = $3,825).

Memory Technique

Remember 'Divide then Multiply' - D.M. for permit fees: Divide by 1,000, then Multiply by the rate

Reference Hint

Florida Building Code Chapter 1 - Scope and Administration, Section 109 - Fees, or local jurisdiction fee schedules

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