Pulling permits in Philadelphia? Need Advice - First-Time BRRRR

[Sharma Parth]

Hi guys - we are about to close on a property soon in Philly and are planning to do the following work - 

-Add HVAC, Add a full bathroom and add a half bathroom, Fix kitchen (keep same layout)

My contractor is saying that (Approach - 1 ) - we don't need to pull permits. We can finish the work in 8 weeks. After that, I can request a CO from the town and then make it easy for me to rent or sell it. (Approach - 2) - He says that if he is asked to pull permits, he is not responsible for any additional work that the inspector may throw (basically more money out of my pocket on the rehab costs). In his experience, for this job he says we don't need a permit and it will only cause more delays. 

We are torn between both approaches here.

Cam someone suggest what approach is better? If we don't get a permit then does the inspector for the CO ask for it when he/she comes for inspection? or they just care about the house being "liveable"? 

Thank you in advance!

[Stuart Udis]

@Sharma Parth It doesn’t sound like the scope of work you described would require a CO. In Philadelphia a CO is issued for new construction, additions, alterations that impact exits or fire ratings and renovations that change the use. I’m still a proponent for obtaining necessary permits as it costs more if caught, are issued a stop work order and have to then apply.  Have you verified with your builders risk carrier that you will have coverage if there’s a claim and the renovation is completed without proper permits? Also that your contractors carrier will pick up coverage if they are working without permits? Your seller disclosure also looks better when you can check the boxes stating the work was completed with permits when it’s time for resale.  

Ultimately it’s personal preference but if you choose to proceed without permits you should at least use trades who have the ability to obtain permits in Philadelphia. As frustrating as getting hit with a stop work order can be it’s worse if the work that is partially completed was done by non licensed contractors. Now you have to find contractors to apply for permits and assume the work that was completed. They will charge a premium and rarely warrant any of the work. At least if the workers who complete the work are licensed you can avoid this headache if caught because they can obtain the permits and complete the work they started.