Private Provider Cost Savings in Florida: What You Actually Save

One of the most common questions we hear from builders and developers considering a private provider is simple: what does it actually cost, and what do I save? The answer is more favorable than most people expect. Here’s how the math works.

Mandatory Permit Fee Reductions

Florida Statute §553.791 requires municipalities to reduce permit fees when a private provider performs plan review, inspections, or both. This reduction is not discretionary — it is legally mandated. The reduction reflects the work the building department is no longer performing.

Permit fee reductions vary by municipality but typically range from 25% to 50% of the plan review fee component when a private provider is used for plan review, and a separate reduction for inspection fees when private inspections are used. On a $1.5M residential permit, this can represent $3,000–$8,000 in direct fee savings depending on the jurisdiction.

Schedule Savings: The Bigger Number

The permit fee reduction is real money, but the larger financial benefit is schedule compression. Tew & Taylor clients reduce their construction timeline by 6–7 weeks on average compared to full municipal processing. For projects with meaningful carrying costs, that schedule reduction translates directly to the bottom line.

• Construction loan interest: A $2M construction loan at 8% carries roughly $13,000/month in interest. Closing 6 weeks earlier saves approximately $20,000.
• Contractor wait time: Subcontractors idled by inspection delays charge waiting time or reprioritize to other jobs. Schedule continuity reduces change orders.
• Earlier revenue or occupancy: For investment properties, every week of earlier occupancy is rental income. For custom homes, it’s a closing that happens sooner.

Plan Review Round Compression

Municipal plan review in Florida’s active markets averages 3–6 weeks per round. Projects with two or three review rounds — common for complex residential and commercial work — can accumulate 8–18 weeks of plan review time at municipal pace. Private provider plan review at Tew & Taylor averages 2 days per round. That’s not a small difference.

Total Cost Comparison

A realistic cost comparison for a custom residential project:

• Municipal route: 4–6 weeks plan review, 1–2 week inspection queues, full permit fees, 6–8 additional weeks on schedule
• Private provider route: 2-day plan review, same-day/next-day inspections, reduced permit fees, Tew & Taylor fee partially offset by permit reduction

For most projects above $500K in construction value, the private provider cost is recovered entirely through permit fee reductions and schedule savings within the first month of construction.

Get a Project-Specific Estimate

Tew & Taylor provides project-specific fee estimates. Contact us with your project address, permit type, and construction value and we’ll give you a clear picture of what the engagement costs and what you’ll recover through fee reductions and schedule improvement.