What is valuation in the context of permit fees

The estimated cost of the work or construction used as a basis to compute permit fees.

Why is accurate valuation important for permit fees

Because fees are often a percentage or formula of valuation; under- or overestimating can cause revenue loss or unfair charges.

What are plan review fees and how are they determined

Fees charged for reviewing submitted plans; often based on valuation, project size, complexity, or fixed schedules.

What is a base permit fee

A minimum fee charged regardless of valuation or project size, to cover basic permit processing costs.

What is surcharge / administrative fee in permit costing

Additional fees added to cover administrative overhead, technology, record retention, or processing.

What is a permit deposit / escrow in the building permit process

A sum held to ensure performance, cover inspections, or guarantee compliance (e.g. for public improvements).

What is a performance bond or construction bond

A financial guarantee that a contractor or applicant will complete work according to approved plans and codes.

What is a maintenance bond

A bond to ensure that after construction is complete, any defects or issues within a defined time are corrected.

A three-party agreement in which a surety guarantees to the jurisdiction that the principal (contractor) will perform obligations.

What is financial assurance / guarantee

Mechanisms (bond, letter of credit, escrow, deposit) ensuring funds are available to do work or remedy code violations.

How is a letter of credit used in lieu of a cash deposit or bond

The jurisdiction may accept a bank’s irrevocable letter promising payment if the applicant fails obligations.

When might the jurisdiction require cash bonds

For small projects, public improvements, or when surety or other guarantee is not acceptable or available.

What is fee schedule / fee ordinance

The adopted regulation or table in a jurisdiction’s code that prescribes how fees are computed (e.g. per valuation ranges).

What is adjustment / appeal of fees

The process by which an applicant can request reconsideration or reduction of a fee based on discrepancies or comparisons.

Why must a permit technician understand financial assurance and bonds

To ensure all required guarantees are in place before issuing permits, protect the jurisdiction’s interests, and properly communicate these to applicants.

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PT Ch. 5 Review

Question	Answer
What is valuation in the context of permit fees	The estimated cost of the work or construction used as a basis to compute permit fees.
Why is accurate valuation important for permit fees	Because fees are often a percentage or formula of valuation; under- or overestimating can cause revenue loss or unfair charges.
What are plan review fees and how are they determined	Fees charged for reviewing submitted plans; often based on valuation, project size, complexity, or fixed schedules.
What is a base permit fee	A minimum fee charged regardless of valuation or project size, to cover basic permit processing costs.
What is surcharge / administrative fee in permit costing	Additional fees added to cover administrative overhead, technology, record retention, or processing.
What is a permit deposit / escrow in the building permit process	A sum held to ensure performance, cover inspections, or guarantee compliance (e.g. for public improvements).
What is a performance bond or construction bond	A financial guarantee that a contractor or applicant will complete work according to approved plans and codes.
What is a maintenance bond	A bond to ensure that after construction is complete, any defects or issues within a defined time are corrected.
What is surety bond	A three-party agreement in which a surety guarantees to the jurisdiction that the principal (contractor) will perform obligations.
What is financial assurance / guarantee	Mechanisms (bond, letter of credit, escrow, deposit) ensuring funds are available to do work or remedy code violations.
How is a letter of credit used in lieu of a cash deposit or bond	The jurisdiction may accept a bank’s irrevocable letter promising payment if the applicant fails obligations.
When might the jurisdiction require cash bonds	For small projects, public improvements, or when surety or other guarantee is not acceptable or available.
What is fee schedule / fee ordinance	The adopted regulation or table in a jurisdiction’s code that prescribes how fees are computed (e.g. per valuation ranges).
What is adjustment / appeal of fees	The process by which an applicant can request reconsideration or reduction of a fee based on discrepancies or comparisons.
Why must a permit technician understand financial assurance and bonds	To ensure all required guarantees are in place before issuing permits, protect the jurisdiction’s interests, and properly communicate these to applicants.

Created by: user-1915758

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