Certified Building Official Management Practice Exam

Building Permit Fees are classified as what type of fee?

1. Service fee

2. Regulatory fee

3. Administrative fee

4. Inspection fee

The correct answer is: Regulatory fee

Building permit fees are classified as regulatory fees because they are established to regulate construction practices and ensure compliance with building codes and safety standards. These fees are imposed by local governments and authorities to cover the costs associated with enforcing regulations that protect public safety, health, and welfare. Regulatory fees help fund the necessary activities for oversight, including plan reviews, inspections, and compliance checks, which are integral to maintaining the integrity of the built environment. While service fees do relate to the provision of specific services, they typically cover direct costs for services rendered rather than regulatory oversight. Administrative fees would pertain to costs associated with administrative functions but do not specifically capture the regulatory aspect of building permits. Inspection fees are charged specifically for the inspections performed during construction, but they are usually separate from the initial permit fee, which encompasses the regulatory mechanisms in place to ensure all building projects adhere to required standards.