I generally advise against permits. OTOH, I make my living investigating building fires and explosions
The contractor does not have an option on getting a permit. The building code requires a permit. The only thing exempt would be "portable gas-fired appliances", "replacement of minor parts on an existing system", or "emergency work" - none appears to apply. And
he should get the permit, not you. If he wants you to get the permit in your name, that generally means he does not have a license to do the work or he wants to be deemed a subcontractor to you so he can use your homeowners general liability insurance in case something goes 'boom'.