Minimum Building Valuations

MINIMUM PERMIT VALUATION

Consistent with the authority granted under the California Building Code, the City of San Ramon has established a minimum valuation methodology utilizing ICC Building Valuation Data together with regional adjustment factors derived from the Engineering New Record (ENR) Building Cost Index. This methodology is applied consistently across projects within the jurisdiction to establish minimum permit valuations reflective of the total scope of permitted construction.

Section 109.3 of the 2025 California Building Code states:

“The applicant for a permit shall provide an estimated value of the work for which the permit is being issued at time of application. Such estimated valuations shall include the total value of work, including materials and labor, for which the permit is being issued, such as electrical, gas, mechanical, plumbing equipment and permanent systems. Where, in the opinion of the building official, the valuation is underestimated, the permit shall be denied, unless the applicant can show detailed estimates acceptable to the building official. The building official shall have the authority to adjust the final valuation for permit fees.”

VALUATION CALCULATION METHODOLOGY

This includes all new buildings, facilities, additions, tenant improvements and residential remodels.

• Valuation is defined as the fair market value of materials and labor for the work.

NOTE: When the garage space structurally supports the second floor, the value for R-2/R-3 will be used in calculating the fair market value of materials and labor for the garage space. If the garage is detached or contains no structural support for a habitable area, the garage space may be calculated as a Utility Occupancy.

• Valuation shall be the higher of the stated valuation by the applicant or the figure from the current International Code Council valuation table (Published in FEB and AUG of each calendar year).

• The current ICC Valuation data table is adjusted with a regional building cost modifier for the San Francisco Bay Area of 20%*. *Source: The local modifier is calculated using the Engineering News Record (ENR) McGraw-Hill Construction Monthly Building Cost Index for San Francisco.

• The valuation for tenant improvements, residential remodels or other projects that do not involve new square footage, shall be a minimum of 60% of the cost per square foot in the current ICC valuation table.

DEFINITIONS

  1. Building cost index means the Engineering News Record (ENR) McGraw-Hill Construction Monthly Building Cost Index for San Francisco.

  2.  Valuation means the fair market value of all materials and labor for the permitted work (including permanent systems like electrical, plumbing, mechanical, finishes, etc.).

  3. Building permit valuation means the fair market value of the building or other construction project and Building Official’s estimate of the development project or improvement valuation.

  4. ICC Building Valuation Data means the national average minimum dollar value per square foot based on occupancy type that is published by the International Code Council (ICC) in February and August of each Calander year.

  5. Regional cost multiplier means the difference between the ENR National Building Cost Index and the ENR San Francisco Building Cost Index.

  6. Minimum valuation means the building permit valuation based on the current ICC Minimum Building Valuation Data per square foot multiplied by the current Regional Cost multiplier.

  7. Dwelling Square Footage means the habitable square footage of the Dwelling plus the garage square footage combined as an R-2/R-3 (if supporting habitable space above).

    NOTE:     When the garage space structurally supports the second floor, the value for R-2/R-3 will be used in calculating the fair market value of materials and labor for the garage space. If the garage is detached or contains no structural support for a habitable area, the garage space may be calculated as a Utility Occupancy.

  8. Adjusted Value Per Sq Foot means Current ICC Building Valuation Data per square foot × ENR Regional Modifier, (Rounded down to the nearest full dollar).

  9. Minimum Valuation Calculation: Dwelling Square Footage multiplied by the Adjusted Value Per Sq Foot.

EXAMPLE OF CALCULATION

  1. August 2026* ICC Building Valuation R-3 min per square foot is $177.63.
  2. The calculated regional cost multiplier (per the ENR*) is currently 23.32% but rounded down to 20% for easier calculations.
  3. As the ENR increases, the City will continue to round down to the nearest 5% (i.e. 20-24% will be 20%, 25-29% will be 25%, and so on).
  4. $177.63 x 1.20 = $213.16
  5. $213.16 is rounded down to the nearest full dollar = $213.00
  6. If the calculated square footage is 3000 square feet
  7. Then the minimum building valuation will be: 3000 x $213.00 = $639,000

*When performing your calculation, always use the most current ICC Building Valuation Data and the most current Engineering News Record (ENR) McGraw-Hill Construction Monthly Building Cost Index for San Francisco.

If you have questions regarding the calculation, you may contact the permit center for assistance at 925-973-2580.