Building licensis , permits , fee , and test?

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http://forum.allaboutcircuits.com – I am wondering in the trade world how licenses , permits , fee , inspection and test go? ( basically the difference) Example: I would imagine if a person just didn't go thru the testing but had a lot of electrical experiences/information and felt confident that he could wire a whole house ... etc and did it (that would technically not be going by the book) but if he after that had a professional inspector come in and the inspect said it was (as good or better then the professionals in terms of building code ) then it should fly. :) So the test/licensing would be just for an initial to get (Embedded)