The permit question comes up on almost every job. Sometimes the client pushes back on permits to save money. Sometimes it's tempting to skip the hassle. But the consequences of unpermitted work are serious — for the homeowner and for your license. Here's what you actually need to know.
What Requires a Permit
Every jurisdiction is different, but the general rule: any structural work, electrical, plumbing, HVAC, or significant alteration requires a permit. This includes additions, decks over 200 square feet, finished basements, water heater replacements in many jurisdictions, electrical panel upgrades, new circuits, any work on the supply or drain lines, and HVAC equipment replacement in some areas. Cosmetic work — paint, flooring, cabinet swaps — typically doesn't require permits.
Why Permits Exist
Building permits exist for one reason: to ensure work meets code so that people don't get hurt. Inspectors catch real problems — undersized structural members, unsafe wiring, improper venting. The permit process is imperfect, but it's a quality check that protects both the homeowner and you from serious liability.
What Happens Without One
Homeowners who sell a house with unpermitted work face serious problems at closing — buyers demand the work be disclosed, lenders refuse to finance properties with unpermitted additions, and title companies flag it. The homeowner either pays to have the work permitted after the fact (which often means opening walls for inspection) or they disclose it and lose value. In either case, they may come back to you. Your license can be at risk if you're identified as the contractor who did unpermitted work.
The "Homeowner Exemption" Trap
Some homeowners want to pull the permit themselves to save money or avoid scrutiny of contractor licensing. This can work, but know what you're getting into. If the homeowner pulls the permit and you're identified as the contractor, you may still be liable. And if something goes wrong on unpermitted work, your insurance may not cover it.
When Clients Push Back
When a client asks you to skip the permit, the right answer is: "I can't do that. Unpermitted work creates liability for you at sale and liability for me professionally. Here's how we handle the permit cost in the estimate." If they insist, that's a client you don't want.
The Bottom Line
Pull the permit. Build it right. Pass the inspection. It's the only way this ends well for everyone.