A homeowner requests work valued at $8,500 without obtaining a building permit. The contractor should:
Correct Answer
B) Require the homeowner to obtain the permit before starting
Contractors must ensure all required permits are obtained before beginning work, regardless of project value. Working without required permits violates building codes and can result in penalties for both contractor and property owner.
Why This Is the Correct Answer
Option B is correct because Florida law requires contractors to ensure all necessary permits are obtained before beginning any work that requires permits. The contractor has a professional and legal obligation to verify permit compliance regardless of project value. Starting work without required permits exposes both the contractor and homeowner to code violations, stop-work orders, fines, and potential liability issues. The contractor must make permit acquisition a prerequisite to starting the project.
Why the Other Options Are Wrong
Option A: Apply for the permit on behalf of the homeowner
This is incorrect because there is no monetary threshold that exempts projects from permit requirements. Even projects under $10,000 may require permits depending on the type of work being performed (electrical, plumbing, structural, etc.). The permit requirement is based on the nature and scope of work, not the dollar value.
Option C: Proceed with work since it's under $10,000
This approach violates Florida building codes and contractor licensing requirements. Completing work before obtaining required permits can result in the work being deemed non-compliant, requiring costly corrections or removal. It also exposes the contractor to disciplinary action and potential license suspension or revocation.
Option D: Complete the work and advise homeowner to get permit after
While contractors can assist with permit applications, they should not automatically assume this responsibility without explicit agreement. The homeowner is typically the permit applicant as the property owner. Additionally, this option still doesn't address the fundamental requirement that permits must be obtained BEFORE work begins.
Memory Technique
PBW: Permit Before Work - this acronym reminds you that permits must always come before beginning any work that requires them.
Reference Hint
Florida Building Code Administration chapter and Florida Statutes Chapter 489 (Contracting)
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?