That's probably true, but it also limits the number of available contractors to the ones who know a particular city's processes. It would be harder for a smaller contractor to operate across multiple jurisdictions. So it limits competition, which drives up prices.
That may be true. But that means it makes much less sense to build “affordable homes”. Even though the home we had built (through a builder) 3 years ago was very reasonably price (Metro Atlanta) at less than 350K, we chose the smallest, cheapest floor plan available and still ended up getting 3100 square feet.