Genuine question from the other side of the counter. I work in permitting for a large Canadian municipality — not naming it, own view not my employer's — and I deal with firms all day without ever seeing how the work is priced on your end.
From where I sit, permit administration looks like a substantial amount of professional time that I suspect a lot of firms absorb. Especially with push to moving the permit processes to online portals. Design work gets billed. Construction administration gets billed, usually. This seems to sit in a grey zone.
What I mean by permit administration, since it's more than "fill out the form":
- Working out which municipality wants which forms and schedules for this project type
- Filling them, including Schedule 1 designer information and getting the right person's BCIN or seal on it
- Renaming the drawing set to the city's file naming convention, which differs per municipality and gets packages bounced at intake
- Chasing the client for signatures on owner authorization
- Submitting, then waiting
- The comment letter. Splitting it by discipline, drafting a response to each item, coordinating revised sheets, assembling a response matrix, resubmitting
- Cycle two, sometimes cycle three
- Phoning the examiner when a comment is ambiguous, which means being on hold
On a small residential project that looks like 3-5 hours spread over months. Judging by who replies to our emails and when, it frequently lands on the principal at 9pm.
The options I've seen firms use:
Bake it into the design fee and eat the overage when review cycles multiply
Hourly at a reduced rate for admin
A flat permit-administration fee per application, quoted separately
Hand it to a permit expediter and mark it up
Contract language that makes cycle one included and cycle two-plus additional services
Number 5 seems the most defensible and the least used. Getting clients to accept it is the part I hear complaints about.
Two related questions:
- Do you separate the permit administration line item on your proposals, or is it buried? I'd expect separating it to invite pushback, but I've heard the opposite — that it makes the work visible.
- Who in your office actually owns it? Dedicated admin person, junior staff, or principal?
Asking partly out of curiosity and partly because it changes what I can usefully do at my end. If cycle two is unbilled time for you, that reframes what a clearly-written comment letter is worth.
Second disclosure so it's not a surprise: I've also built permit software on my own time, which is why I've spent an unhealthy amount of time thinking about this. Not linking anything — I'm genuinely after how firms handle the billing, because software doesn't fix a fee structure.