Interpretation #7894

Published June 12, 2017

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Original Request

Code Version
2014
Code
BUILDING
Code Description
Chapter
1
Section
FBC (2014) 109.3 Building permit valuations
Topic
job cost

Question

Can you please define or elaborate what the intent of this section means when they refer to "total value of work". ?
Can this

FBC (2014) 109.3 Building permit valuations
The applicant for a permit shall provide an estimated permit value at time of application. Permit valuations shall include total value of work, including materials and labor, for which the permit is being issued, such as electrical, gas, mechanical, plumbing equipment and permanent systems. If, in the opinion of the building official, the valuation is underestimated on the application, the permit shall be denied, unless the applicant can show detailed estimates to meet the approval of the building official. Final building permit valuation shall be set by the building official.

Answer Published 06/12/2017 at 2:32 PM

The applicant has to provide an estimated value of the work. With the exception of flood zones (AE and VE which have different rules), you need to include all labor and materials. If the value estimated is not realistic then the building official can reject the estimate and deny the permit. Many times, spreadsheets or other methods of breakdown of the prices and then overhead and profit are provided. The major price guides to confirm prices may also be used.
The executed contract is another way to determine valuation in addition to the major price guides.
In some jurisdictions, new construction valuation is based on the ICC building valuation data table adopted semiannually. When values of other work is in question a copy of the contract is requested.
Site work may be a separate contract, the cost of which should be added to the building permit if it is not already included.

Commentary

None