A permit allowance is carried at 1.05% of a $1,860,000 construction value. What allowance should be included?
Correct Answer
D) $19,530
Multiply construction value by rate.
Why This Is the Correct Answer
Multiply construction value by rate.
Why the Other Options Are Wrong
Option A: $18,600
$18,600 is below the supported result for permit-fee allowance; it likely omits part of the approved scope, cap, credit, or holdback.
Option B: $20,460
$20,460 is above the supported result for permit-fee allowance; it likely adds scope or money the rule does not allow.
Option C: $21,390
$21,390 is above the supported result for permit-fee allowance; it likely adds scope or money the rule does not allow.
Memory Technique
Permit-Fee Allowance gate for Negotiated 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, Florida notice/permit rule, or field-control record before answering.
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