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Question DetailsAsked on 1/16/2018

Does the company installing a furnace have the right to charge the owner for the permit? and How much in Indianapol

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You should NOT be paying for a contractor licensing fee, even if he does not routinely work in the Indy city limits, unless you agreed to this up-front because you place was out of his normal service area but he agreed to come do it there IF you paid the licensing fee. His licensing fee is for his annual license to work as a HVAC contractor or Plumber (as the case may be) - this is part of his overhead and should not be individually billed to customers. This is different from a building or intallation permit, which is issued individually for each job and is a legitimate part of the total charges for that job.

Certainly they have to recover the permit fee cost somewhere - either rolled into a lump-sum price, or added onto a "cost plus" job like a repair where the cost could not be figured out up-front. If they gave you a "bid" or firm quote for a fixed price, unless the contract (or the fine print on the back of the quote form, commonly) specifically said that taxes and permit fees and such would be added onto the amount shown, generally the permit cost should have been included in the quoted price. (Taxes are different - generally sales taxes can be added to a listed price, because that is not part ofthe job cost - the contractor is just acting on behalf of the city in collecting the tax).

Assuming you are in the city of Indianapolis, you can see the permit fee schedule below - page 4 for HVAC jobs. Looks like $153 for a furnace replacement in a house not over 2500SF, more for larger ones. For a combined Heating/AC system replacement, $185 for house not over 2500SF, more for larger, it looks like to me.

Answered 2 years ago by LCD

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