Building Permit Fees: “How are fees calculated for a new Single Family Dwelling building permit?”
This is a very important question to contractors and homeowners alike. Knowing the accurate amount of permit fees is important to the homeowner calculating one’s overall project budget. Similarly, a contractor needs to know what dollar amount to include into the bid proposal. Underestimating the fees will bite into the contractor’s profit margin, while guessing too high could cause the contractor to lose the work completely in a competitive bid process. Typically permit fee amounts will range from 1% to 2% of the total valuation of a given project.
In the past, the manner in which local jurisdictions calculated building permit fees varied greatly. With approximately 130 separate jurisdictions throughout the State of Oregon, one can understand how difficult it was if each one used a different method of calculating permit fees. Contractors working in various areas of the state needed to be able to accurately predict fees to prepare bids and estimates. In order to obtain consistency the State of Oregon Legislature enacted ORS 455.055. This statute requires local jurisdictions to use consistent state-wide methods in calculating the fees assessed to a building permit. The State of Oregon Building Codes Division drafted and adopted OAR 918-050-0100, commonly called the “Uniform Fee Methodology” rule. Each local jurisdiction is required by statute and rule to adhere to the Uniform Fee Methodology.
The Uniform Fee Methodology rule contains provisions regarding the calculation of fees using the International Code Council (ICC) Building Valuation Data Table. (See Attached) All local jurisdictions are required to use the table that is in effect on April 1 of each year. The ICC Valuation Data Table is intended to be reflective of national average construction costs based on typical methods for each occupancy group and type of construction. Once the project valuation is determined using the ICC Table, the municipality’s fee schedule is applied to determine the building permit fee. Plan reviews fees are based on a predetermined percentage of the building permit fee. Our current plan review percentage is 75%. Local fees must be enacted by ordinance pursuant to ORS 455.210 (3) (a) which allows a municipality to establish a fee schedule that is both reasonable and necessary to provide for the administration and enforcement of the state building code. Fees collected by the local jurisdiction are dedicated funds to be used only to offset the cost of administering the building code enforcement program. Typically, local building departments receive no General Fund support and are expected to be self-sufficient relying solely on the fees collected.
Example: One 2,000 sq. /ft. single family dwelling with 500 sq. /ft. of garage space.
Valuation
Living Space 2,000 sq. /ft. x $150.87 per foot ICC Table cost $301,740
Garage Space 500 sq. /ft. x $60.43 per foot ICC Table cost $30,215
Total Valuation $331,955.00
Permit Fee
The first $100,000.00 is assessed a fee of $1,167.35
The additional $231,955 is assessed a fee of $1,436.08
$6.19 per each $1,000.00 and fraction thereof
(6.19)(231,955/1000)
Building permit fee total $2,603.43
Additional fees
Plan review fee (75% of the building permit fee) $1,952.57
State surcharge (12% of the building permit fee) $312.41
Technology Fee (3% of the building permit fee) $78.10
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Building permit, Plan Review fee and Surcharge total $4,946.51
Our staff is happy to provide you with a very close estimate based on the information that is provided to them and I encourage all contractors and homeowners to contact our office to obtain assistance in calculating the correct fees for a given project.