Permit applications sometimes ask for project valuation. That field is not necessarily the same thing as the home's value or the contractor's profit; it is a project-cost concept used by the jurisdiction under its own rules.
Building departments use their own terminology, deadlines and procedures. Treat this as a practical orientation and verify the current rule with the jurisdiction that issued — or would issue — the permit.
No. Permit valuation relates to the construction project, not the market value of the property.
In some jurisdictions or permit types, valuation can be one input to fee calculations. Check the city's current fee methodology.