Picture this: you sell your house in five years. The buyer's inspector opens the attic hatch, peers at the electrical panel, and asks a question that makes your stomach drop: "Was this work permitted?" It wasn't. And now a $1,200 permit fee you skipped has turned into $8,000 in retroactive demolition, inspection, and re-finishing — plus a buyer threatening to walk.

Permits are not bureaucratic busywork. They are the trigger mechanism for inspections, and inspections are the only independent verification that your contractor's work is structurally sound, electrically safe, and plumbing-code compliant. The liability does not follow the contractor. It follows the property. For decades.

Which projects require permits

Rules vary by jurisdiction, but these categories require permits in virtually every municipality in the country:

  • Structural changes — Removing or modifying load-bearing walls, adding headers or beams, foundation work, room additions, and any change to the building envelope (new windows or doors in bearing walls, dormers, bump-outs).
  • Electrical work over 15 amps — New circuits, panel upgrades, sub-panel installations, and any work that involves running new wire from the electrical panel. Swapping an outlet or light switch on an existing circuit typically does not require a permit. Adding a new outlet or circuit does.
  • Plumbing relocations — Moving supply lines, relocating drain/waste/vent (DWV) piping, adding new fixtures that require new drain connections, and water heater replacements (in most jurisdictions).
  • HVAC — New furnace or AC installation, ductwork modifications, mini-split installations, and gas line work. Even a like-for-like furnace replacement requires a permit in most areas — the inspector verifies proper venting, gas connections, and clearances.
  • Roofing — A full re-roof requires a permit in most jurisdictions so the inspector can verify underlayment installation, flashing, ventilation, and fastener patterns. Some jurisdictions allow a permit exemption for repairs covering less than 100 sq ft.
  • Decks and porches — Any attached or freestanding deck over 200 sq ft or 30 inches above grade (thresholds vary) requires a permit. The inspector verifies footings, ledger board attachment, joist sizing, railing height, and baluster spacing per IRC R507.

Which projects typically do not require permits

  • Cosmetic updates — Interior and exterior painting, wallpaper, and decorative finishes.
  • Flooring over existing subfloor — Installing hardwood, tile, or LVP over a structurally sound existing subfloor. If the subfloor needs replacement, that may trigger a permit if structural members are exposed or modified.
  • Cabinet refacing and replacement — Swapping cabinet doors or installing new cabinets in existing locations without moving plumbing or electrical.
  • Like-for-like fixture replacement — Replacing a faucet, toilet, or light fixture in the same location using the existing connections. No new wiring, no new plumbing.
  • Landscaping and fencing — Most jurisdictions allow fences under 6 feet without a permit, though setback requirements still apply. Check local ordinances.
The gray area: Some projects fall in between. Replacing a window with the same size window in a non-bearing wall often does not require a permit. Replacing it with a larger window, or cutting a new opening where there was not one? Almost always does — because the framing is modified. When in doubt, call your local building department. A 5-minute phone call is cheaper than an enforcement action.

Permit costs by project type

Permit fees are typically calculated as a percentage of the project's declared construction value, with minimum and maximum thresholds. These ranges reflect costs across U.S. municipalities as of 2026 — and they are a rounding error compared to the risk of skipping them:

  • Kitchen remodel — $400-$2,500. A $60,000 gut-remodel in a major metro area (Chicago, Los Angeles, Seattle) with structural, electrical, plumbing, and mechanical work may require separate permits for each trade, pushing total fees toward the higher end.
  • Bathroom remodel — $300-$1,500. A straightforward bathroom with a new shower, toilet, and vanity in existing locations runs $300-$600. A full gut with plumbing relocation and electrical adds $400-$900 more.
  • Deck construction — $200-$800. Most jurisdictions calculate deck permits based on square footage and height above grade. A 300 sq ft deck at 4 feet above grade typically falls in the $350-$550 range.
  • Electrical panel upgrade — $150-$500. Upgrading from a 100-amp to a 200-amp panel is one of the most straightforward permits. The fee covers the permit plus two inspections (rough and final).
  • Re-roof — $100-$400. Roofing permits are relatively inexpensive because the scope is well-defined. Some jurisdictions charge a flat fee; others base it on the number of squares.
Example: A homeowner in Austin, TX plans a $45,000 kitchen remodel that includes relocating a gas line, adding 3 electrical circuits, and moving the sink drain 4 feet. Permit fees: building permit ($875, based on 1.4% of declared value), electrical permit ($225), plumbing permit ($195), mechanical permit for gas line ($150). Total permit cost: $1,445. The contractor's quote should include these as a line item or explicitly state they are excluded. If permits are not mentioned at all, the contractor may be planning to skip them.

Who pulls the permit matters

Either the homeowner or a licensed contractor can pull a building permit in most jurisdictions. That sounds like a minor administrative detail. It is not. It shifts legal liability.

Red flag: A contractor who asks the homeowner to pull the permit is asking you to become the legally responsible party for code compliance. When a licensed contractor pulls the permit, they are certifying that they will perform the work to code and that they carry the insurance required by the jurisdiction. When the homeowner pulls the permit, the homeowner assumes that responsibility. If the work fails inspection or causes damage, the homeowner-pulled permit means you cannot hold the contractor accountable through the permitting system.

There are legitimate situations where a homeowner pulls a permit — owner-occupied homes doing their own work, for example. But if you are paying a licensed contractor, the contractor pulls the permit. Their license number goes on the application. Their insurance is attached to the project. That is precisely what their license fee, their bonding, and your contract price are supposed to cover.

The inspection sequence

Most remodeling projects involve 3-5 inspections, depending on scope. The order is not optional — each inspection must pass before work can proceed to the next phase, and for good reason.

  • Rough-in inspection — Conducted after framing, electrical wiring, plumbing pipes, and HVAC ducts are installed but before walls are closed. This is the most critical inspection because it verifies structural connections, wire sizing, pipe slopes, and fire blocking that will be permanently buried behind drywall. If the rough-in fails, the contractor must correct the deficiency and schedule a re-inspection ($75-$150 re-inspection fee in most jurisdictions).
  • Insulation inspection — Required in many jurisdictions before drywall installation. The inspector verifies insulation R-values, vapor barrier placement, and air sealing per the energy code (IECC or state equivalent). Some jurisdictions combine this with the rough-in.
  • Final inspection — Conducted after all work is complete: fixtures installed, devices connected, finishes applied. The inspector verifies GFCI protection in wet areas, smoke/CO detector placement, railing heights, stair dimensions, and overall code compliance. Pass this one and you get your Certificate of Occupancy or Certificate of Completion.
Timeline impact: Each inspection requires scheduling, typically 3-7 business days in advance. A failed inspection followed by correction and re-inspection can add 1-2 weeks to the project timeline. A good contractor builds inspection scheduling into the timeline from day one. A contractor who says "we'll deal with inspections at the end" is telling you they have not planned for them — or never intended to call them in at all.

What happens when work fails inspection

A failed inspection is not a catastrophe. It is a correction notice. The inspector documents the specific deficiency — "GFCI protection missing on kitchen counter circuit," "deck ledger bolts spaced at 24 inches o.c., code requires 16 inches o.c." — and the contractor fixes it. Assuming the contractor pulled the permit and the deficiency is in their workmanship, the cost of correction is theirs, not yours.

Common reasons for failures: electrical boxes not properly secured, plumbing drain slope less than 1/4 inch per foot, missing nail plates on studs where pipes or wires pass within 1.25 inches of the face, fire blocking missing at floor-to-floor transitions in balloon-framed homes, joist hangers installed with incorrect fasteners. None of these are exotic. All of them are preventable by a competent crew.

Example: A deck fails the framing inspection because the ledger board was attached with lag screws instead of through-bolts as required by the approved plan. The fix: removing the ledger, drilling through-holes in the rim joist, installing 1/2-inch through-bolts with washers at 16 inches on center, reattaching the flashing. That is $400-$800 in labor and materials. On a properly permitted project, the contractor absorbs this cost. On an unpermitted project, this deficiency would never be caught — and the deck could separate from the house under snow load or occupancy load. One costs a few hundred dollars. The other costs a life.

The insurance risk of unpermitted work

Homeowner's insurance policies typically contain a clause requiring that all construction work comply with local building codes. Unpermitted work, by definition, has no verification of code compliance. So when unpermitted electrical work causes a fire, or unpermitted plumbing causes water damage, the insurance company has grounds to deny the claim entirely.

Think about what that means in dollars. A house fire originating from unpermitted electrical work could result in a denied claim on a $350,000 home. Water damage from unpermitted plumbing that reaches the foundation could cost $15,000-$40,000 to remediate — every dollar out of pocket, because the insurer is not writing that check.

Then there is the resale problem. A buyer's inspector identifies unpermitted work. The buyer's lender requires permits to be pulled retroactively, which means finished walls get torn open for inspection. Retroactive permitting on a completed kitchen remodel can cost $3,000-$8,000 in demolition, inspection, and re-finishing — on top of the permit fees you tried to avoid in the first place.

Red flags: when contractors dodge permits

Red flag: A contractor who says "you don't need a permit for this" for any project involving structural changes, new electrical circuits, or plumbing relocation is either uninformed or deliberately sidestepping the process. Both are disqualifying. Equally dangerous: a contractor who says "I'll handle the permits" but never produces a permit number, never has an inspector visit the site, and closes walls without a rough-in inspection. That is unpermitted work with a verbal fig leaf.

Protect yourself: ask for the permit number within the first week of the project. Call your local building department and verify that the permit was issued, that it matches your project scope, and that it is in the contractor's name. Ten minutes. Zero cost. Complete peace of mind.

  • "We don't need a permit for this" — For structural, electrical, plumbing, or HVAC work, this is almost never true. Verify independently by calling your building department.
  • "Permits just slow things down" — Inspections add 1-2 weeks to a typical project. That is the cost of ensuring the work is safe. A contractor who frames speed as more important than safety is telling you exactly what they prioritize.
  • "I'll handle it" with no follow-through — The permit should be posted visibly on-site (a legal requirement in most jurisdictions). No permit card in the window after the first week? Ask. If the contractor deflects, call the building department yourself.
  • Homeowner-pulled permit on a contractor-performed project — Unless you are acting as your own general contractor and hiring individual tradespeople directly, the contractor should be pulling the permit under their license.

What your quote should say about permits

A professional quote addresses permits explicitly: which permits are required, the estimated cost of each, who will pull them (the contractor), and whether permit fees are included in the quoted price or billed separately. If none of this appears in the quote, add it to your list of questions before signing. The absence of permit language is not an oversight — it is a tell.

Permits are the one area where cutting corners has no upside and catastrophic downside. A $1,445 line item protects a $45,000 investment, your insurance coverage, and your resale value. Refusing to pay it is like declining the warranty on a parachute.

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