What are the benefits/ risks if my contractor wants me to pull the permit?

Question

I recently closed on a house that will be my second rehab, so I'm still relatively new in the space. I have a general contractor I've worked with on a more cosmetic project in the past that I trust. We didn't need a permit for the past job because we didn't change any major systems or structure. For this one, electrical and plumbing need to be replaced, which means applying for a permit. He wants me to go online and apply for it myself- is this typical when working with an investor-friendly contractor, or a red flag? I'm not worried about him walking away before the job is completed - I won't pay him in full until all inspections are successful, but I don't know if there are any other considerations in this situation that I might not be aware of.

Appreciate any advice, experiences that others have in this space. Thank you!

Matt Devincenzo · Answer

There's kind of an industry misnomer, at least in the areas that I have worked, that GCs "apply for permits". That is largely not the case...even the design build firms do not do it themselves The reality is there are typically permit processors who are the ones applying for clients, and usually the developer/owner/designer is the one hiring the permit processor. If the GC does it as a design build then they're just passing along another consultant fee to you as part of your project.

What typically does happen is the GC is listed on the application docs as the builder/contractor etc. When you get to permit issuance, they may be the permit holder, though I personally would not list them there as permit holder but only inspection POC.

On $100M multi family projects typically I see the client/developer apply themselves if they have their own permit team/group, or hire a processor if they don't. The GC will bid and re-bid through the review process and then sign a contract for construction once the design solidifies. This keeps the developer in control of their own permit, and if they switch GCs before contract they don't now need to 'get control' of the application from the prior GC. Same goes for permit, the developer holds the permit and the GC just is listed as builder and inspection POC. If they fire the GC later, the developer is the permit holder and just needs to apply for a change of GC vs. having their permit held hostage by an unethical GC.

That's what I've seen...different jurisdictions may vary in the roles and responsibilities but where I'm familiar with this is the way it is typically handled.

Kenneth Garrett · Answer

@Katie Camargo

Many jurisdictions require contractors as well as subcontractors to be licensed.  This sounds like he is not a licensed contractor.  There are certain jurisdiction that will allow a homeowner to pull their own permit if they are doing the work.  This applies to owner occupied for the most part.

Are you flipping the property?  I would ask why your contractor wants you to pull the permit.  Some jurisdictions are very strict when it comes to flipping properties.  Too many people cutting corners because they will flip the property poorly and then they are gone.  Not saying this is the situation or that you would cut corners, but I have worked with many agencies as a consultant.

I’ve been a building and zoning official for years and this has been my experience.  You can check the cities website to confirm what the rules are for pulling a permit.

Austin Jones · Answer

Hey Ms. Katie, here are the benefits and risks I think of in this situation.

Potential Benefits

1. Lower cost for you – When you pull the permit, the contractor doesn’t have to list themselves as the contractor of record, and sometimes they'll pass those savings on (less overhead, no license on the line, no extra admin on their end).

2. Faster permit approval – Some cities make owners jump through fewer hoops or allow faster online submissions.

3. Flexibility with subs – If they’re using different licensed trades for portions (plumbing, electrical), the owner permit can simplify that.

Risks / Things to Be Aware Of

1. You become the “contractor of record.”
This means:

• You are responsible for code compliance.
• If something fails inspection, you are on the hook.
• If something is done incorrectly and causes damage later, liability often points to you first—not the contractor.

You are responsible for code compliance.

If something fails inspection, you are on the hook.

If something is done incorrectly and causes damage later, liability often points to you first—not the contractor.

2. He may not be licensed for the plumbing/electrical he's subcontracting
Contractors sometimes ask owners to pull permits when they:

• Don’t have the appropriate trade license, or
• Are trying to avoid the liability of having their name tied to the project.

Don’t have the appropriate trade license, or

Are trying to avoid the liability of having their name tied to the project.

This isn't always a red flag, but it can be one.

3. Insurance complications
If something goes wrong and you pulled the permit as the GC, your insurance may say “that’s not covered because you acted as the contractor.”
Meanwhile, the contractor’s insurance may claim they're just a laborer working for you.

4. Harder to enforce accountability
When the permit is in their name, inspectors hold them to a higher standard.
When it’s in your name, that pressure disappears.

Most seasoned flippers let the licensed trades pull their permits (electrician pulls electrical, plumber pulls plumbing).If a general contractor won't pull a building permit for structure-level work, many investors see that as a red flag.

Hope this helps, feel free to let me know if you ever need anything!

Bryan Hartlen · Answer

@Katie Camargo, My experience is limited to Birmingham, AL area where a homeowner can only pull a permit for their own owner occupied home if they are doing the work.  On flips or rentals, the licensed contractor that is performing the work needs to pull the permit and they list me (my company) as the owner. The contractor is the company that is required to be available for the inspection and any flagged corrections. The contractor must be licensed for the work (eg a licensed electrician can’t pull a plumbing permit). Assuming this is different in your market and you are able to pull a permit; and assuming your contractor is licensed: I would call the inspector’s office and ask them what benefits they see in having an owner pull the permit vs a contractor.

Jason Garriga · Answer

Hey Katie, great question!

Benefits:

- more control: this is great if you're working with a contractor for the first time and you're unsure how they'll perform

- more oversight: you know exactly where the project/permit stands instead of relying on the contractor's word

- cost: the total cost involved with pulling a permit should be less if you pull it yourself because you don't have to pay the contractor to facilitate and handle the permitting process

Risks:

- liability: if the permit is filled out incorrectly or something goes wrong with the permit, you're fully liable. This is important to consider because contractors are used to the ins-and-outs or pulling permits and what's entailed and typically homeowners don't have that same familiarity which increases the risk for errors and hiccups.

To answer the more direct question about whether the contractor asking you to pull a permit is a red flag: in my opinion, yes. Unless there's a specific reason he's asking you to pull it, I would say that it is NOT typical for a contractor to ask the homeowner to pull the permit. I would definitely get more information on why he wants to pull it and post his answer here just to make sure his reasoning is legitimate.

Hope this helps!

Brandi Williams · Answer

I would not automatically call it a red flag, but I would slow down and clarify exactly why he wants you to pull the permit.

The biggest issue is not just who fills out the online application. It is who the city views as responsible for the work, corrections, failed inspections, and final closeout. If the owner pulls the permit, some jurisdictions may treat the owner as the responsible party, even if a contractor is doing the work.

Before agreeing, I would ask:

• Is he licensed and registered to work in that jurisdiction?
• Why does he not want to pull the permit himself?
• Who will be listed for the electrical and plumbing work?
• Who is responsible, in writing, for failed inspections and correction items?
• Will final payment be tied to passed inspections and a closed permit?

I would also call the local permitting office directly and ask how they handle owner-pulled permits on investor rehabs versus contractor-pulled permits. Some cities are stricter when the property is not owner-occupied or when the work involves major systems.

Not legal advice, but from a risk standpoint, I would want permit responsibility, inspection responsibility, and payment milestones all clearly lined up before work starts.

Peter Mckernan · Answer

You can do owner builder permit, or the GC if licensed can do the permit pulls too. If the GC is not licensed, sounds like maybe they are not licensed, then that is why the request was made to you to pull it. I would check with the city, and some people do pull permits for the GC, and in my experience I have been able to pull permits non-owner occupied, but a lot of city want a owner-occupant to pull the permit for owner-builder.

I did an ADU and pulled the permits for the ADU, then handed them over to the GC with the GC being the contact and licensed person in charge/contact.

Dan H. · Answer

I am assuming that he wants you to apply for the permit with his contractor license.   If he is asking you to pull a permit as owner/builder then I question if his license s active.

I think this is jurisdiction specific.   N my jurisdiction I pull the permits.  If I am using licensed contractors, the permit requires their license info.   But I am the permit holder.  Some jurisdictions require the contractor to have a business license info that jurisdiction (seems to be a way for the jurisdiction to squeeze some more money out of the effort).

Owner/builder in my jurisdictions must have work performed by the owner of w2 employees of the owner.   There has never been a check of this on any of the efforts I have done and I have never heard of this being checked in my jurisdictions (but there could always a 1st time).

To answer your question question, I believe it is typical in some jurisdictions that the owner pull the permits listing the contractor’s license.  As @Matt Devincenzo indicated, this is really what is desired.  What if your contractor fails to perform and you fire them (or anything else that prevents the contractor from being able to finish the effort)?   Do you want to start the permit process over?

good luck

Jonathan Klemm · Answer

Hey There @Katie Camargo - First off each munipality is different.  Here in Chicago, unless you are self-GC'ing your own project, you have to have the GC or a specific licensed trade pull the permits.

Do you know if you are required to have a GC license in Fairfax?  Does your contractor have a GC, and/or does he have the trade-specific subcontractors get on the permit?

The only red flag for now pulling permits is you should expect to a pay a bit more. but more importantly it ensures your project is done to current building code, which is a good thing!

Are you in Richmond or Fairfax?

What are the benefits/ risks if my contractor wants me to pull the permit?

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