A general contractor is building a 3,500 square foot commercial office building. The building permit fee is $2.50 per square foot for the first 2,000 square feet and $1.75 per square foot for each additional square foot. What is the total building permit fee?
Correct Answer
A) $7,625
First 2,000 sq ft: 2,000 × $2.50 = $5,000. Remaining 1,500 sq ft: 1,500 × $1.75 = $2,625. Total: $5,000 + $2,625 = $7,625.
Why This Is the Correct Answer
This is a tiered fee calculation problem that requires breaking down the total square footage into different rate categories. The first 2,000 square feet are charged at $2.50 per square foot, while the remaining 1,500 square feet (3,500 - 2,000) are charged at the lower rate of $1.75 per square foot. Adding these two amounts together gives the correct total permit fee of $7,625.
Why the Other Options Are Wrong
Option B: $8,125
This answer likely results from incorrectly applying the higher rate ($2.50) to the entire 3,500 square feet instead of using the tiered structure, or from making an arithmetic error in the calculation.
Memory Technique
Remember 'TIER-ED' fees: Tiered rates require Identifying breakpoints, Evaluating each section separately, and Remembering to add Each Division together
Reference Hint
Florida Building Code Chapter 1 - Scope and Administration, specifically sections dealing with permit fees and 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?
People Also Study
Business & Financial Management
120 questions · 70% to pass
Project Management
60 questions · 70% to pass
Previous Question
In a Guaranteed Maximum Price (GMP) contract, if the actual project costs are $485,000 and the GMP is $500,000 with a 50/50 cost savings split, what is the contractor's total compensation if the base fee is $35,000?
Next Question
What is the primary difference between substantial completion and final completion of a construction project?