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Costs of Contracting for Building Inspections <br /> vs. <br /> Hiring a Receptionist and Training Ken Cook <br /> ++++++++++++++++++++++++++++++++++ + + + + + + + + + + + + + + + + + + + + + + + + + + + + + ++ <br /> Before a cost /benefits analysis can be completed on the above <br /> issue, it is imperative that everyone agree on some basic <br /> assumptions. <br /> If we use the figure of 140 new residential units that we have <br /> agreed at previous meetings is a realistic estimate of probable <br /> units to be built in 1997, then we can base the number of <br /> building inspections on that figure. We also need to add to that <br /> figure the number of additional inspections for decks, additions, <br /> etc. on the existing housing stock. From these figures we can <br /> estimate the amount of time needed to complete the inspections <br /> for work scheduling and we can estimate the revenues compared to <br /> the expenditures for each of the above scenarios. <br /> Assuming 140 new units next year @ $1800 building permit <br /> revenue /unit = $252,000 <br /> and <br /> Assuming a total of 160 other building permits (school expansion, <br /> decks, additions, commercial, industrial... etc. 160 x <br /> $90 /permit = $14,400 <br /> Estimated 1997 Building Permit Revenue = $266,400 <br /> Contracting Scenario <br /> Assuming Paul could conduct 50% of the building inspections <br /> by himself then : <br /> 50% x $266,400 = $133,200 is the amount of money the City would <br /> retain plus 20t of the remainder of the building permit revenue <br /> $133,200 x 800 = $106,560 lost to contractor <br /> $133,200 x 20 °s = $ 26,640 retained by the City <br />