Due to the age-old conflict-of-interest rule, the International Building Code (IBC) forbids the building contractor from hiring or paying the special inspector. Code law requires the owner or the design professional representing the owner to pay the approved agency (firm providing special inspections). The building code does, however, issue an exception that allows the contractor to employ the special inspection agency where the contractor is also the owner (IBC Section 1704.2, Exception 5).
This exception creates serious concerns in practice because it introduces an inherent conflict of interest. The contractor may refuse to allow other project team members to be copied on special inspection reports and test results. Since the contractor hires the special inspector, the contractor owns the special inspector’s reports, and they may or may not share the special inspection reports and tests with the building official or the design professional in responsible charge. The contractor may fire the special inspector because they think that the special inspector is overzealous with the testing frequency or because of too many discrepancies.
It is important for every special inspector and every approved agency to realize that the IBC code and most statewide building codes require that the special inspection agency send copies of all reports and tests to the building official (directly) as well as the registered design professional in responsible charge. Please note IBC Section 1704.2.4 and the report requirements listed at the bottom of the page.
In many cases, when the contractor is designated as the owner of a large project, the contractor is not the long-term owner of the project. In many design-build or speculative ventures, the contractor forms a temporary “shell” company to act as the legal owner. The contractor subsequently sells the building shortly after completion. This violates the spirit of the “code exception rule for the owner” because the true long-term owner is not the one overseeing the project’s special inspections and testing. While the building official could reject the contractor’s chosen inspector if the inspector lacks independence, this is rarely done and can create adversarial situations among project team members.
IBC Section 1704.2.4 Report Requirement. Approved agencies shall keep records of special inspections and tests. The approved agency shall submit reports of special inspections and tests to the building official and to the registered design professional in responsible charge. Reports shall indicate that work inspected or tested was or was not completed in conformance to approved construction documents. Discrepancies will be brought to the immediate attention of the contractor for correction. If they are not corrected, the discrepancies shall be brought to the attention of the building official and to the registered design professional in responsible charge prior to the completion of that phase of the work.
IBC Chapter 2 Definition of “Approved Agency”: An established and recognized agency that is regularly engaged in conducting tests, furnishing inspection services, or furnishing product certification where such agency has been approved by the building official.
For more information or further enthusiastic discourse on topics of CODE, please contact Alan Tuck at: atuck@fandr.com or 540.344.7939.
