A permit-fee allowance is carried at 0.95% of a $2,730,000 construction value. What allowance should be included?
Correct Answer
D) $25,935
Multiply construction value by the allowance rate.
Why This Is the Correct Answer
Multiply construction value by the allowance rate.
Why the Other Options Are Wrong
Option A: $24,570
$24,570 is below the supported result for permit allowance; it likely omits part of the approved scope, cap, credit, or holdback.
Option B: $27,300
$27,300 is above the supported result for permit allowance; it likely adds scope or money the rule does not allow.
Option C: $28,665
$28,665 is above the supported result for permit allowance; it likely adds scope or money the rule does not allow.
Memory Technique
Permit Allowance gate for Prepares Gmp: paper opens before money moves.
Reference Hint
Open-book path: tab Principles and Practices of Commercial Construction, 11th Edition, 2024 to General conditions estimating; permit-fee allowance; verify the quantity, approval point, notice rule, or field record before answering.
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