Pass fees On

How Contractors Are Making Digitization Affordable: The Power of Expedited Permitting Fees

September 28, 20243 min read

How Contractors Are Passing Permitting Fees On To Their Customers – Creating A “Win-Win” Scenario For All Parties Involved

In the competitive world of construction, staying ahead often means embracing new technologies. However, the cost of digital tools can be a concern for many contractors. Enter the game-changing approach of passing on digital service fees as "Expedited Permitting Fee." in job quotes. This strategy is making the digital transformation of manual processes, like driving to the court house to record your Notice of Commencement (NOC) with the county clerk, financially viable for contractors of all sizes.

The Traditional NOC Process: Costly in Time and Resources 👊

Traditionally, the Notice of Commencement process has been a drain on resources:

 1. Creating the document

2. Getting it notarized in person

3. Driving to the recorder's office

4. Waiting in lines at the court house

  1. Obtaining a certified copy

This process often translates to hours of lost productivity and increased operational costs.

The Digital Solution: Efficient and Now Affordable

Digital tools are revolutionizing this process, offering a streamlined, efficient alternative. Here's how the digital NOC process typically works:

1. Digital Form Creation: Online document creation of permitting forms

2. Electronic Notarization: Traditional notarization but performed online

3. Electronic Recording: Digital submission online to the county recorder's office

4. eCertification: Instant electronic certified copies

Making Digitization Affordable: The Expedited Permitting Fee Approach

Some contractors are concerned about the fees involved in implementing some of these digital and automated changes. The key to making this digital transformation affordable lies in how contractors handle the associated fees. Recognizing that the digital process not only makes the contractor's life easier, but also benefits their customer by getting their permitting processed faster, many contractors are now passing these fees on to their customers and including these as "Expedited Permitting Fee" in their job quotes. This approach offers several benefits:

- Cost Neutrality for Contractors: By passing on the fee, contractors can adopt digital tools without impacting their bottom line.

- Transparent Value for Clients: Clients see the direct benefit of faster, more secure processing of their permits.

- Competitive Advantage: Offering expedited services can set contractors apart in a crowded market.

The Contractor's Perspective

As one builder noted:

"We include the File and Go fees as 'Expedited Permitting Fee' in our job quotes. Clients love the fast, secure process, and we appreciate the easy fee pass-through. It's a win-win that adds value to our services."

This sentiment is echoed across the industry, with many contractors seeing these fees not as a cost, but as an investment in efficiency that clients are willing to pay for.

The Benefits of This Approach

1. Time Savings: Processes that once took days now take hours or minutes.

2. Cost-Effective: The fee pass-through model makes adoption financially viable of the online services.

3. Increased Accuracy: Digital tools often include validation checks, reducing errors.

4. 24/7 Availability: Online systems allow for processing outside of traditional office hours.

5. Client Satisfaction: Faster processing and transparent fees lead to happier clients.

Looking Ahead: The Future of Affordable Digitization

As more contractors adopt this model, we can expect to see:

- Wider adoption of digital tools across the construction industry

- More contractors offering expedited digital options for permitting

- Increased client expectation for fast, efficient processes

For contractors, the message is clear: embracing digital tools and passing on the fees as a valuable service isn't just about keeping up with technology—it's about providing better, faster service to clients, remaining competitive in a crowded market, while maintaining a healthy bottom line.

By leveraging digital tools and passing on the fees to the customer, contractors are making digitization affordable and positioning themselves at the forefront of industry innovation, ready to modernize and adapt to the ever-evolving construction industry.

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