BISMARCK, N.D. (KXNET) — The City of Bismarck Building Inspections Division uses an estimated construction value to determine the building permit fee for new homes.
This is done to see if the city will need to increase the price of building permits.
“The takeaway is this is something we do each year,” said Brady Blaskowski, building official. “We do consider it with the City Commission along with our budget committee.”
Blaskowski says it’s important to note that the fees are not a representation of the market value of that structure.
“There is a certain dollar value that is assigned to each square foot of a residential home,” said Blaskowski. “A new home or an addition to that home. That dollar value is then put into a permit multiplier and it creates a permit fee.”
The value per square foot has been incrementally adjusted to new one and two-family dwelling projects annually since 2018. The city has continually adjusted the construction value in order to keep up with the national average construction value for homes.
“I think across the board the city operates like any private business would. When cost increases each year, they take a look at how we are providing services, the cost of those services, and adjust things accordingly. “
The division has recently recommended raising the price of the permit from $122.43 to $136.65.
Blaskoski says the increased permit recommendation is not necessarily in direct correlation with the rise of inflation.
“It’s a concern for the contractor as to what the costs are going to be on everything, including permit fees,’ said Blaskowski. “Whether those shipments or issues have resulted in a specific value that we use that’s not the case. “
The update will be considered by the Bismarck Board of City Commissioners during the 2023 budget