A General Contractor is planning a commercial building project valued at $2.5 million. The building permit fee is calculated at $8.50 per $1,000 of construction value. What is the total permit fee?
Correct Answer
D) $21,250
The permit fee is calculated as: $2,500,000 ÷ $1,000 = 2,500 units × $8.50 = $21,250. This represents the total building permit fee for the project.
Why This Is the Correct Answer
The correct answer is A) $21,250. To calculate permit fees based on construction value, you divide the total project value by $1,000 to determine the number of fee units, then multiply by the per-unit rate. With a $2.5 million project value divided by $1,000 equals 2,500 units, and 2,500 units × $8.50 per unit equals $21,250. This straightforward calculation method is standard for permit fee structures in Florida.
Why the Other Options Are Wrong
Option A: $20,000
This answer of $20,000 appears to round the calculation incorrectly or use an approximate rate, possibly calculating 2,500 × $8.00 instead of the correct $8.50 rate.
Option B: $25,000
This answer of $25,000 would result from using $10.00 per $1,000 instead of the given $8.50 rate, representing an error in applying the correct fee schedule.
Memory Technique
Remember 'Divide by thousands, multiply by rate' - always convert the project value to thousands first, then apply the per-thousand rate
Reference Hint
Florida Building Code Chapter 1 - Scope and Administration, Section 109 - Fees, or local jurisdiction fee schedules
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?
An indemnification clause in a construction contract typically requires the contractor to:
A property owner wants to convert a single-family home into a duplex in an area zoned for single-family residential use. The conversion meets all building codes but violates density requirements. What approval is needed?
As-built drawings are typically required to be submitted:
AIA Document A401 is primarily used for:
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?
People Also Study
Business & Financial Management
120 questions · 70% to pass
Project Management
60 questions · 70% to pass
Related Study Resources
Previous Question
A time and materials contract has a labor rate of $85 per hour with a 15% markup on materials. If a project requires 120 hours of labor and $8,500 in materials, what is the total contract amount?
Next Question
What is the acceptable tolerance for concrete slump when the specification calls for 4-inch slump?