10.2 Permits, Plan Review & Inspections

When a Permit Is Required

Two thresholds operate in parallel in Arizona:

1. ROC $1,000 threshold — Arizona requires a contractor license for any construction, alteration, or repair where the total project cost exceeds $1,000. Projects under $1,000 that do not require a building permit are exempt from licensure.
2. Local building permit — The city or county building department separately determines when a permit is required for the work itself (new construction, additions, structural alterations, electrical/plumbing/mechanical work, fences over a certain height, and so on). Requirements vary by jurisdiction.

A licensed contractor must still pull the local building permit even though they already hold an ROC license — the two are distinct authorizations. The ROC license authorizes the contractor to engage in the business; the building permit authorizes the specific project.

The Plan-Review Process

Before construction begins, the contractor or design professional submits construction drawings and specifications to the local building department for plan review. The plans examiner checks the drawings for compliance with the adopted code edition (IRC for residential, IBC for commercial), including:

• Structural design (foundations, framing, lateral load path)
• Means of egress (doors, stairs, exit widths)
• Fire-resistance ratings and separations
• Energy code compliance (IECC)
• Accessibility (commercial)
• Site grading and drainage

Plan-Review Submittal Package

A typical plan-review submittal includes:

• Site plan showing property lines, setbacks, and grading
• Foundation and framing plans with structural details and calculations
• Floor plans, elevations, and sections demonstrating code compliance
• Mechanical, electrical, and plumbing layouts (commercial and complex residential)
• Energy code compliance documentation (IECC prescriptive worksheet or performance report)
• Specifications organized under CSI MasterFormat
• Structural calculations stamped by a licensed design professional (engineer or architect) when required

When the review is complete, the jurisdiction issues a permit (often with a set of correction comments that must be addressed before or during construction). Fees are typically based on the project's valuation, which the jurisdiction determines from the submitted scope or from a declared construction cost.

What Happens When an Inspection Fails

If an inspector finds noncompliant work, a correction notice is issued identifying the deficiency. The contractor must correct the issue and re-request the same inspection before proceeding. Reinspection fees may apply after repeated failures. Common reasons for failed inspections include:

• Foundation excavations too shallow or rebar misplaced
• Rough-in plumbing or electrical not properly secured or spaced
• Framing missing required headers, fire-blocking, or bracing
• Insulation with gaps or incorrect R-value for the climate zone
• Final inspection with missing smoke alarms, incomplete egress, or unfinished accessibility features

Types of Inspections

Once permitted work begins, the contractor must request inspections at defined stages. Work must not proceed beyond an inspection point until the inspector approves the prior stage.

Quick Answer: Inspections occur in a fixed sequence — footing, rough-in, framing, insulation, final — and work cannot proceed past a stage until the inspector signs off.

Certificate of Occupancy

For commercial and new residential construction, the building department issues a Certificate of Occupancy (C of O) after the final inspection passes. The C of O is the legal authorization to occupy the building. Without it, the owner cannot lawfully use or occupy the structure, and utilities may not be released.

Working Without a Permit — Consequences

Performing work that requires a permit without one exposes the contractor and property owner to:

• Stop-work orders — the jurisdiction halts construction until a permit is obtained
• Double permit fees — many jurisdictions charge a surcharge for work started without a permit
• Code compliance regardless — the work must still meet the adopted code; if it was concealed, the jurisdiction may require destructive inspection (opening walls) to verify compliance
• ROC discipline — working without a required permit is a code violation that the ROC can cite, fine, or use as grounds for suspension or revocation of the contractor license
• Insurance and warranty issues — work without a permit may void homeowners insurance and manufacturer warranties

Responsibility of the Qualifying Party

Under A.R.S. Title 32, Chapter 10, the qualifying party is the individual named on the license who is regularly employed and actively engaged in the licensed work. The qualifying party and the contractor entity are responsible for:

• Ensuring all required permits are obtained before work begins
• Scheduling and passing inspections at each required stage
• Correcting work that fails inspection
• Complying with the adopted code edition and local amendments
• Supervising employees and subcontractors so their work meets code

The ROC holds the qualifying party accountable for code violations and work without a permit — discipline runs against both the license and the individual.

Quick Answer: The ROC license authorizes the contractor to do business; the local building permit authorizes the specific project. The qualifying party is responsible for obtaining both and passing every inspection.