Just for discussion let's assume the work can be done legally without a permit, and at the option of the owner or contractor, a permit can be pulled.
When I worked in a building department I had applications where I would call the applicant and say no permit is required, but their response would be "well I'd like a permit anyway" and so I'd approve the application. It does happen.
So this guy, let's assume he is duly licensed, wants to charge $850 for the permit.
He has to obtain signatures on the application.
He has to fill out the application and make a trip to the building dep't. Let's assume it's an over the counter permit and the building dept is 25 miles away.
For a round number let's say the permit fees total $100.
He has to call for inspection and coordinate access for the inspector, and at his option (normally), either be on site or not.
How many hours do you EC's have in those processes?
And what's your hourly rate for your time?
Now do the math.
How far off is this guy?
Is he over by $100-$200 or is he tripling his costs?
He just might have more time in the permit than in the actual work as we all know does happen.