I've personally had minor electrical work done (e.g., adding one outlet) without pulling a permit. So obviously that's the most affordable option of all, depending on how extensive the work is relative to your assessment of risk associated with foregoing permitting/inspections. I would always ensure permitting happens where my safety or the salability of my house are at all at issue, though.
If you are interested in handing permitting yourself, my basic understanding is that if you're skilled enough to complete any required drawings and communicate the technical details in your application, then permitting staff should generally be able to help guide you through the process. After all, it's not you or your contractor who really matter for permitting, but rather the permitting staff and their inspectors, so if you can work effectively with them that's all that matters. This isn't my area of expertise, but it seems like it might be worth trying to do yourself, especially if the contractor's quote for that line item is relatively high and you possess the requisite technical know-how.