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Building Permit Process Explained in 10 Steps

Datagrid Team·Published ·Last updated on ·5 min read
Building Permit Process Explained in 10 Steps

A contractor submits a permit application for a tenant fit-out, and two weeks later the city sends it back before review even starts. The permit type is wrong, the site plan is missing, and the floor area on the application doesn't match the drawings. The clock resets, and the start date moves with it.

The building permit process is the sequence of approvals a local building department requires before construction begins and before a building can be occupied. A typical project moves through ten steps: confirm whether a permit is needed, define the scope, check zoning, prepare plans, submit the application, calculate and pay fees, respond to plan review, clear common delays, schedule inspections, and close out with final approval. Forms, fees, and review disciplines vary by jurisdiction, so the building department with authority over the project address has the final word.

Many departments are also changing how they receive and screen applications, and some cities now use automated permitting systems to handle completeness checks. The steps below cover what applicants control, and what to check before each handoff so the package clears intake the first time.

The Building Permit Process Step by Step

Each step depends on the project address and the proposed work. State and local amendments can change permit exemptions, drawing requirements, fee formulas, and the order of approvals, even when two jurisdictions adopt the same model code. Virginia's statewide building code, for example, exempts one-story storage sheds up to 256 square feet from permits, while the model residential code stops at 200 square feet.

1. Confirm Whether the Work Needs a Permit

Before design or construction begins, ask the local building department whether the work needs a building permit, a separate trade permit, or no permit. New buildings, additions, structural alterations, and changes of occupancy generally need approval, while limited finish work may be exempt.

Model code exemptions are only a baseline. The 2024 International Residential Code exempts qualifying one-story detached accessory structures up to 200 square feet, while the 2024 International Building Code uses a 120-square-foot threshold for comparable structures. Check both against local amendments.

A building permit exemption doesn't authorize work that violates other code provisions, so zoning, floodplain, historic district, electrical, plumbing, and mechanical approvals may still apply. Get the determination in writing when the scope sits close to a threshold.

2. Define the Full Project Scope

Write a scope that describes existing conditions, demolition, new work, changes in use, and every affected building system. A bathroom remodel that relocates plumbing needs a different permit scope from a finish-only renovation, and an interior alteration that touches a load-bearing wall counts as structural work.

List each permit the project will need, including building, electrical, plumbing, mechanical, fire protection, demolition, grading, and right-of-way permits. Commercial projects may also need signage, elevator, or health department approvals.

Once the scope is written, a pre-application meeting with the building department confirms the permit list. It pays off most when the project involves a change of occupancy, mixed uses, phased construction, unusual fire and life safety conditions, historic review, or several reviewing agencies. Bring a short scope, a preliminary site plan, a code summary, and specific questions about required permits, concurrent reviews, professional seals, and how the department handles deferred submittals or phased permits. Record each answer and the agency that gave it.

Keep the scope consistent across the application, drawings, specifications, contractor information, and valuation. If one file calls the work structural and another calls it nonstructural, resolve the mismatch before intake. Datagrid's Scope Checker Agent can compare contracts, drawings, and project data for scope gaps and overlaps, so the application describes the same work the drawings show.

3. Check Zoning and Property Restrictions

Before paying for a full drawing set, confirm that the proposed use and building form are allowed on the property. Check zoning, setbacks, height, lot coverage, parking, easements, utilities, flood hazards, and historic restrictions. Zoning compliance checks at this stage catch problems that no amount of building code work can fix.

Some commercial projects need land-use or site plan approval first. Austin, for example, requires a site plan, site plan correction, or site plan exemption before an applicant can apply for a commercial building permit, although some reviews can run concurrently. If the project needs a variance, conditional use approval, rezoning, or public hearing, start that process early.

4. Prepare Plans and Application Materials

Once the permit path is clear, prepare the plans and supporting files for that project type. A typical residential permit package includes:

  • Application and scope: The completed application form and a detailed scope of work.

  • Site plan: Property lines, setbacks, easements, structures, and utilities.

  • Floor plans, elevations, and sections: Existing and proposed conditions drawn to scale.

  • Structural documents: Structural plans and calculations when the work affects the structure.

  • Energy code materials: Compliance forms required by the jurisdiction's energy code.

  • Contractor information: The licensed contractor's details or an owner-builder declaration.

Commercial packages usually include signed and sealed architectural, structural, mechanical, electrical, and plumbing drawings; code and life safety plans; energy compliance documentation; and, when required, a statement of special inspections. Professional seal requirements depend on state law, so confirm them before assuming an owner-prepared set will be accepted.

Follow the jurisdiction's digital submittal standards exactly. Memphis and Shelby County, for example, require searchable PDFs, landscape orientation, and a fixed file naming pattern under their electronic plan review standards.

5. Submit the Application and Pass Intake

Submit only after you've checked every field, signature, plan, and supporting document against the jurisdiction's current checklist. Many departments accept applications through an online portal powered by permitting software, although some permit types still require an appointment.

Intake checks completeness, and technical review follows. San Francisco, for example, first checks each submission for completeness, then emails a letter saying the application is accepted for review or needs more information. Staff confirms the permit type, required plans, current forms, signatures, and seals, and they may return an incomplete package before plan review begins.

Save the application number, payment receipts, uploaded plan set, and portal correspondence in one controlled permit folder. Permit application tracking keeps that record current as the application moves through review.

6. Calculate and Pay Permit Fees

Departments collect some fees at intake and others after plan review, and the permit won't issue until every fee is paid, so confirm what's due at each stage. Permit fees depend on project valuation, floor area, occupancy, construction type, and local policy. A jurisdiction's fee schedule may list separate charges for plan review, building and trade permits, inspections, zoning, impact fees, and certificates of occupancy.

Many departments base the building permit fee on the International Code Council's Building Valuation Data table, which uses this formula:

Permit fee = Gross area × Square foot construction cost × Permit fee multiplier

The multiplier reflects the department's budget, the share of that budget covered by permit fees, and the total construction value the department expects to review. Use the jurisdiction's adopted fee schedule for the actual application, because an old spreadsheet or a fee from a similar project in another city will be wrong. Ask whether plan review fees are refundable, whether resubmittals add charges, and whether impact or utility fees are collected separately.

7. Respond to Plan Review Comments

After intake, the department routes the application to the disciplines required by the scope, such as zoning, structural, fire, energy, accessibility, mechanical, electrical, plumbing, or outside agencies. If reviewers issue comments, respond to each item in a numbered comment response letter that names the revised sheet and explains what changed. Submit the full updated plan set when the department requires it.

Before resubmitting, cross-check the application, drawings, specifications, calculations, and response letter as one package, and have the architect, engineer, or code consultant confirm it. Datagrid's Document Comparison Agent can compare the revised drawing set against the previous submission and flag every changed sheet, so the response letter accounts for each change the reviewer will see.

8. Clear Common Delays Before Each Handoff

Permit delays carry real cost. In 2025 testimony to Congress, NAHB said that regulatory costs account for 24% of the final price of a new single-family home. Run a short preflight check before each submission and resubmission:

  • Permit type: The application names the correct permit type for the scope.

  • Site plan: The site plan is complete and matches the survey.

  • Signatures and seals: Every required signature and professional seal is present.

  • Forms and code cycle: The forms are current, and the drawings reference the adopted code edition.

  • Project data: Scope, area, occupancy, and valuation match across every document.

  • File format: Plans follow the jurisdiction's upload standards.

  • Linked changes: Calculations and responses were updated when the drawings changed.

The applicant remains responsible for the submission's accuracy. One person should own the permit record and run the preflight check before anything goes to the department.

9. Receive the Permit and Schedule Inspections

Don't start permitted work until all required approvals are complete, final fees are paid, and the department has issued the permit. Download the permit, approved plan set, inspection card, and conditions of approval, and keep the stamped set on site for the superintendent and trade contractors to use.

If the design changes during construction, get approval before building the change. Seattle, for example, requires applicants to get approval for permit revisions before changing the approved work. Unapproved changes can lead to a correction notice or a stop work order.

The permit holder schedules each required inspection before covering work, typically at footing or foundation, underslab, rough plumbing, mechanical and electrical, framing, insulation, and final. Before the inspector arrives, confirm the approved plans are on site, the work is accessible, and earlier corrections are closed. If an inspection fails, assign each correction item and get approval before concealing the work. Building code compliance tracking keeps those correction items tied to the permit record.

10. Close Out With Final Approval or a Certificate of Occupancy

When construction and trade inspections are complete, schedule the final inspections and close any open correction notices. New buildings, changes of occupancy, and many substantial alterations need a certificate of occupancy before anyone can use the space. Austin, for example, issues the certificate after a successful final inspection and can grant a temporary certificate before that in some situations.

Keep the final permit, approved plans, inspection records, certificate of occupancy, and approved revisions with the permanent project records. Future renovations, refinancing, insurance claims, and property sales all depend on proof that the work was permitted and approved.

Keep Every Permit Package Consistent With Datagrid's AI Agent

Many permit resubmittals stem from mismatched documents. Datagrid's AI agents can run the cross-checks that keep a permit package consistent:

  • Scope checks: Compare contracts, drawings, and project data for scope gaps before the application goes in, with the Scope Checker Agent.

  • Revision comparison: Flag every changed sheet between plan review submissions with the Document Comparison Agent.

  • Requirement search: Find code references, specification sections, and conditions of approval across connected project files.

  • Connected records: Work across project files in Procore and Autodesk Construction Cloud so the permit folder matches the project record.

Architects, engineers, and code consultants still own code interpretation and professional sign-off.

Get started with Datagrid by comparing your last two plan review submissions and checking whether the agent flags a changed sheet your response letter missed.

Frequently Asked Questions About the Building Permit Process

Does a Building Permit Exemption Eliminate Other Approvals?

No, a building permit exemption covers only the building permit. Zoning, floodplain, historic district, and trade approvals may still apply, so confirm each one with the issuing department.

When Should I Get a Permit Determination in Writing?

Get it in writing whenever the scope sits close to an exemption threshold or the answer depends on a local amendment. Keep the written determination in the permit folder and confirm that its address and scope match the current plans.

How Are Building Permit Fees Calculated?

Many departments calculate the building permit fee from project valuation, often using a valuation table such as ICC's Building Valuation Data multiplied by the floor area and a local fee multiplier. Plan review, trade permit, inspection, and impact fees are usually added separately under the local fee schedule.

What Should a Plan Review Response Include?

A numbered response to every comment, the sheet number where each change appears, and a short explanation of what changed. Submit the full updated set when the department asks for it, and confirm no comments remain open before uploading.

Which Permit Records Should I Keep After Closeout?

Keep the final permit, approved plans, inspection records, certificate of occupancy, and approved revisions in one indexed closeout set. That set backs up future renovations, refinancing, insurance claims, and property sales.

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