Environmental impact assessment reveals endangered species habitat on a construction site covering 2.5 acres. The mitigation fee is $75,000 per acre, with a 15% administrative fee. What is the total environmental permit cost?
Correct Answer
C) $215,625
Base cost is 2.5 acres × $75,000 = $187,500. Adding 15% administrative fee: $187,500 × 1.15 = $215,625 total environmental permit cost.
Why This Is the Correct Answer
The correct answer is B because environmental permit costs require calculating both the base mitigation fee and administrative costs. First, multiply the site area (2.5 acres) by the per-acre fee ($75,000) to get $187,500. Then add the 15% administrative fee by multiplying $187,500 × 1.15 = $215,625. This represents the total environmental permit cost including all required fees.
Why the Other Options Are Wrong
Option A: $225,000
Option D incorrectly calculates the administrative fee, possibly using 38% instead of 15%, or making an error in the multiplication process.
Option B: $258,750
Option C appears to round up the base cost to $225,000 but fails to properly calculate or apply the 15% administrative fee to the correct base amount.
Option D: $187,500
Option A only calculates the base mitigation cost ($187,500) without including the required 15% administrative fee, making it incomplete.
Memory Technique
Remember 'BASE + ADMIN' - always calculate the base environmental cost first, then multiply by (1 + admin percentage) to get the total permit cost in one step.
Reference Hint
Florida Building Code Chapter 1, Environmental Regulations section, or local environmental permitting guidelines for fee structures and calculations
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
An activity has an Early Start of Day 10, Early Finish of Day 15, Late Start of Day 14, and Late Finish of Day 19. What is the total float for this activity?
Next Question
A contractor estimates that 2,500 linear feet of electrical conduit installation will require 125 labor hours. What is the productivity rate in linear feet per hour?