A building permit lets you start construction; an occupancy permit, or occupancy approval, lets people use the finished building. The first is based on drawings and what you plan to build. The second is based on inspections and documents showing what you actually built. Most projects need both, and the gap between them is where delays usually happen.
The two permits side by side
| Building permit | Occupancy permit or approval | |
|---|---|---|
| When | Before construction starts | After construction is complete, before use |
| Based on | Drawings, specifications, applications | Inspections, tests and closing documents |
| Question it answers | Does the design meet the code? | Was it built as approved, and is it safe to occupy? |
| Who issues it | Authority having jurisdiction, usually the municipality | The same authority |
Terminology varies. Some municipalities issue a separate occupancy document; others record occupancy approval as a stage in closing the building permit. Ontario's building code, for example, includes rules for occupying a building before it is fully complete. Check what your authority calls it and what it requires.
The building permit stage
A building permit is usually needed for new construction, additions, structural changes, many renovations, and changes of use. You submit drawings and information showing the work will meet the provincial building code, which is usually based on the National Building Code of Canada with provincial changes. Ontario, BC and Alberta each adopt their own versions, and some large cities have their own bylaws as well.
Separate trade permits are often required for electrical, gas, plumbing and sometimes mechanical work. These are usually pulled by licensed contractors.
Inspections during construction
The building permit typically comes with a list of required inspections at key stages, such as footings, framing, insulation and vapour barrier, and plumbing rough-in. Each one has to be passed before the work is covered up. Missing a required inspection can mean opening finished work later.
Trade permits have their own inspections. All of them need to be closed before occupancy.
The occupancy stage
When construction is done, the authority does a final inspection. For most buildings it focuses on life safety, exits, fire separations and conformance with the approved drawings. The authority also asks for documents, which commonly include:
- Fire alarm verification reports and sprinkler test certificates
- Letters of assurance or compliance from the architect and engineers, where required
- Closed electrical, gas and plumbing permits
- Elevator acceptance documents where elevators are installed
- Backflow preventer test reports
Once satisfied, the authority grants occupancy, sometimes with conditions or for part of the building only. See what is a certificate of occupancy? for more on this stage.
Why the gap causes trouble
Teams often treat the building permit as the hard part and assume occupancy will follow. In practice, these issues hold it up:
- Changes made on site that weren't submitted as permit revisions
- Life safety systems installed but not verified
- Missing firestopping found during the final walk
- Documents scattered across consultants and trades
- Earlier stage inspections that were never booked
Plan closeout from the start. Make a list of every document the authority will need at occupancy when the building permit is issued, assign an owner to each, and track it through construction. Closeout is far easier when it isn't left to the last week.
Who usually does what
Roles differ with the project and the contract, but on a typical commercial project the work splits roughly like this:
| Party | Building permit stage | Occupancy stage |
|---|---|---|
| Owner or permit holder | Applies for the permit, often through the designer | Responsible for arranging the final inspection and supplying documents |
| Architect and engineers | Prepare the drawings, and letters of assurance where required | Carry out field reviews and provide closing letters where required |
| General contractor | Books stage inspections | Collects trade documents and corrects deficiencies |
| Licensed trades | Pull their own trade permits | Close those permits and provide test and verification reports |
| Authority | Reviews drawings and issues the permit | Inspects and grants occupancy |
A worked timeline
An owner adds a single-storey warehouse extension to an existing building. The architect submits drawings, and the building permit is issued with a list of required inspections. The electrical and plumbing contractors take out their own permits. Footings, framing and plumbing rough-in are inspected and passed as the work goes up. Midway through, the owner asks for an extra overhead door, which is added on site without a permit revision. At the end, the sprinkler contractor provides test certificates for the extended system, and the trade permits are closed. At the final inspection, the authority notices the extra door is not on the approved drawings. Occupancy waits while the architect submits a revision and the authority reviews it. A pre-final walk against the drawings would have caught it weeks earlier.
Questions to settle when the building permit is issued
- Which stage inspections are required, and who books each one?
- Which trade permits are needed, and who holds them?
- What documents will the authority want at occupancy, and who provides each?
- How will site changes be reviewed and submitted as permit revisions?
Related situations
Changes of use and renovations
A building permit and new occupancy approval can be needed even when little physical work happens. Changing a space's use, for example from office to restaurant or from retail to a daycare, can change requirements for exits, fire separations, plumbing fixtures, ventilation and accessibility. Talk to the authority early, before signing a lease or buying a property for a new use.
Commissioning and occupancy
Commissioning, which verifies that building systems work as designed, is a separate process from occupancy approval. The authority may grant occupancy before every system is tuned. Owners usually want both. Our guide to commissioning a new building explains the difference.
How ehZee can help
We help owners and contractors through the occupancy stage: reviewing permits and drawings, inspecting ahead of the final inspection, listing deficiencies and tracking the documents the authority will want. The authority alone grants occupancy. Learn more about our certificate of occupancy inspections, or call 1-833-888-0091.
Common questions
Can I get an occupancy permit without a building permit?
Generally no. If work was done without a permit, the authority will usually require a permit application, and may require work to be opened up for inspection, before granting occupancy.
Who is responsible for getting occupancy?
The permit holder, usually the owner or the owner's contractor, is responsible for arranging inspections and providing documents. Contracts should say who does what.
Does a building permit expire?
In many municipalities, permits can lapse if work doesn't start or stalls for a period. Rules vary, so check with your authority if a project is delayed.
What happens if a stage inspection was missed?
The authority may ask for the work to be exposed so it can be seen, for example by removing drywall to show framing or insulation, or may accept other evidence such as an engineer's review. Which option applies is the authority's decision, so contact them as soon as you find the gap rather than waiting for the final inspection.