The costs of not pulling permits

Maintaining your competitive edge can be difficult, especially when businesses that don't play by the rules start directly competing at a lower price. What's the best way to overcome this obstacle? Educate your potential customers!

One of the initial steps to any project is obtaining the proper permits and is often factored into the timeline for job completion. Since unlicensed contractors can't pull permits for home improvement projects, this greatly calls attention to the importance of hiring a licensed contractor.

Here are the primary repercussions to the homeowner when permits aren't pulled on time or at all

Hard to sell - the house likely won't pass inspection should they try to sell it.

Insurance issues - homeowner insurance policy modifications or changing companies often require a Certificate of Occupancy. If the certificate doesn't show structural changes that have been made, the insurance company can decline coverage because it's not code compliant.

Safety considerations - especially when work is completed that could represent potential fire hazards.

Double the costs - any permits pulled after work has already been completed include a fine that doubles what would have been the initial costs of pulling a permit before work was done. First, they need to contact their local building and planning commission as they are now responsible for pulling the permits.

Homeowner accountability – permits pulled after work is completed is the responsibility of the homeowner. It requires the inspection of visible modifications and changes not visible, which need to be detailed by the contractor or a hired structural engineer.

Many consumers are not aware of the full costs associated with contractors not pulling permits. Use this information to educate your potential customers how much short-term saving can cost in the long-run.