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Old 01-03-2011, 11:05 PM   #1
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Is the GC responsible for paying for building permit?


We didn't think about this when we went to the city and paid for the building permit but is the Contractor really responsible for paying the permit since this clause is in the contract?

"Contractor shall at its own expense obtain all permits necessary for the work to be performed."

If so, we're going to bill him for this when the project is complete (deduct it from the final payment.) The permit is in the GC's name and we signed the contract with him before the permit was issued.

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Old 01-03-2011, 11:07 PM   #2
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Is the GC responsible for paying for building permit?


if it's in your contract the GC pays, then that is what it is. Permits are usually paid by the customer but your contract says otherwise.

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Old 01-03-2011, 11:17 PM   #3
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Is the GC responsible for paying for building permit?


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We didn't think about this when we went to the city and paid for the building permit but is the Contractor really responsible for paying the permit since this clause is in the contract?

"Contractor shall at its own expense obtain all permits necessary for the work to be performed."
You already answered your own question and have the proof to back it up. So, why did you go and pay for the permits when your contract says the GC is supposed too pay for permits?

Why are you making this an issue when you are the one who made the mistake?

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If so, we're going to bill him for this when the project is complete (deduct it from the final payment.) The permit is in the GC's name and we signed the contract with him before the permit was issued.
How come you haven't talked to the GC about this? Does he know you picked up and paid for the permit? If so, did he ask you why you did that? And why are you going to bill him at the end of the job and deduct it from the final payment and not settle it now?
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Old 01-04-2011, 12:35 AM   #4
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Is the GC responsible for paying for building permit?


There is no standard practice. A good contractor secures the permit in my opinion, because it is his reputation and good standing with the city at stake. A good contractor doesn't rely on a homeowner to take care of that for him. Often, homeowners handle it for their contractors.

My personal opinion is that you made a mistake and bought the permit, going against what is required of both you and the contractor in the contract. If your contract is a lump sum cost, he had it built into his contract price. If you're not working on a lump sum contract and are paying by the hour or in another manner I believe I'd recognize my mistake and suggest that you meet in the middle financially and split the cost.

If you just got the permit it is awful early to start bickering with the contractor, but I feel it would be more underhanded to hold out until the end of the job to address the issue. Talk to the guy....He's your partner in this, not your adversary. If he's your adversary already you need to part ways before things get going.
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Old 01-04-2011, 08:54 AM   #5
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Is the GC responsible for paying for building permit?


reminds me of the argument that some advocate - companies need higher taxes,,, companies do NOT pay any taxes - they're passed on to their customers as part of operating & overhead costs,,, matter of fact, customers pay ALL any company's expenses
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Old 01-04-2011, 09:32 AM   #6
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Is the GC responsible for paying for building permit?


around here they are starting to eliminate home owner permits to remove tailgaters doing crap work
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Old 01-04-2011, 11:04 AM   #7
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Is the GC responsible for paying for building permit?


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Originally Posted by sfsolar View Post
We didn't think about this when we went to the city and paid for the building permit but is the Contractor really responsible for paying the permit since this clause is in the contract?

"Contractor shall at its own expense obtain all permits necessary for the work to be performed."

If so, we're going to bill him for this when the project is complete (deduct it from the final payment.) The permit is in the GC's name and we signed the contract with him before the permit was issued.
That is an odd clause to have in a contract. Generally, and by generally, I mean always, the customer is responsible for all expenses related to the job.
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Old 01-04-2011, 08:47 PM   #8
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Is the GC responsible for paying for building permit?


As others said, make sure to talk to your contractor right away about this one. I'm surprised he hasn't found out already though. If he went to the city to apply for the permit, he would have found out you pulled it already. Has the work started?

Don't save surprises to the end of the project - that's the wrong time to settle the issue.
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Old 01-04-2011, 09:13 PM   #9
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Is the GC responsible for paying for building permit?


sfsolar,

The cost is yours one way or the other you will pay the cost no matter what. You paid it, it's paid. Forget about it.

Talk to your contractor to tell him to be sure not to charge you again for it if it was in his cost already. That's all there is to it. No reason to sneak up on the guy later, he isn't stupid and will know the permit is there won't he? Did you hang it in a window or in a conspicuous place like you are supposed to? That's your job too you know now that you have procured it.

Something tells me this project isn't going to go well.

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