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There are contractors specifically trained in the design and construction of retaining walls. Retaining wall contractors are skilled at dealing with the soil on your property and assessing what kind of drainage should be installed. They will recommend the best materials to use for the project and can handle the processing of permits by local authorities.

Yes, to build a retaining wall, a permit is required. Similarly, any repairs or modifications to an existing retaining wall require permits. If the planned wall measures higher than 4 feet, most municipalities require designs and permits come through a licensed engineer. In some locations, if the wall is shorter than 4 feet, a permit may not be required. For the requirements in your area, contact your local government.

Small retaining walls still require a foundation of some kind, typically a concrete footing. This helps to ensure the wall is structurally sound and prevents the ground from shifting over time, especially during those winter freeze/thaw cycles. The footing helps spread the weight of the wall and the load it carries over a larger area of the ground, thus assisting with stability. This is true of small retaining walls, larger rock garden walls, and the like. 

Poured concrete is often the cheapest material for a retaining wall, costing around $6 to $8 per square foot. Other budget-friendly options include vinyl and landscaping timbers, which range from $10 to $15 per square foot; landscaping timbers are particularly well-suited for DIY projects. Untreated timber and railroad ties are a step up in price, starting at $15 to $25 per square foot. Natural stones can also be a cost-effective choice if you can source them from your own property, but they can be expensive to purchase. High-end materials like steel are typically the most expensive but offer superior durability and aesthetics.