The Pro Design Builder Podcast
The Pro Design Builder Podcast
The Hidden Value of a Special Inspector
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What is up my Pro Design Builder family? I'm Sam, also known as the Pro Design Builder. The other day I was just going through my phone and I stumbled on this video, and the video was talking about a special inspector. And specifically what happened was the homeowner had renovated this home. I think they spent somewhere close to $241,000 or something like that. And they had all of these defects, and then they brought in a third-party inspector after the fact, and to remedy some of these things that they wanted uh the house was gonna need to be torn down. Right now, the city had done their inspections on the house and they had passed, but there was zero recourse for the city in the inspections that they conducted and what the third-party inspector engineer was seeing, right? So before we get started, uh this group is specifically for real estate investors who want to make the leap into new development. Uh, I'm Sam, uh, like I said, the pro design builder. Uh, for the last eight years, I've been a design build general contractor. Uh, there's no fluff to me, I'm the best in the business, and it's not even close, right? Because I bring a lot of life experience to the table to really make it vivid for you. So, this particular training is good to know because sometimes you don't know what you don't know, right? And it and typically you wouldn't encounter a special inspector on a regular um a regular event. Um, for me, I work with special inspectors all the time, so uh I thought that this was gonna be a good training to really kind of give you guys the the the nuts and bolts of what this looks like and how this can help you when you're prepared to make that transition. So that's what this training is about. It's about the hidden values of a special inspector, right? So, one of the things I like to do is first start out by defining what is a special inspector, right? So, let me tell you, let me tell you exactly what it is. A special inspector are third-party professionals, oftentimes licensed engineers, who verify the critical aspects of construction and complies with approved plans, codes, and safety standards. So I haven't seen a special inspector that's outside of engineering. Uh, they are almost always licensed engineers because that's what gives them the credibility to be able to sign off and prepare reports and then submit to the city once uh it's complete. There's a bunch of different strategy that I use when using special inspectors. As a builder, I recommend a special inspector to the homeowner because I know the process is going to move faster. And there's eight different benefits, and we'll we'll dive into each one of those benefits and how it can help you moving forward on how you should be looking at your your projects, right? So it ensures code compliant code and standard compliance, all right. So it confirms the construction meets uh international building codes and local codes, all right. It helps avoid costly fines, stop work orders, or for forced rework to non-compliance. Now, this is a massive subject topic, right? If you've ever been through any length of construction and if you've ever had uh inspector issues, you know and understand that this is a massive problem. Uh as a matter of fact, uh I tell I used to tell clients all the time, I can control every aspect of the of the project except for once I submit the permits to the city, right? Their processing times, their uh inspectors, how they review things, the the comments that they want back, all of that stuff is um you know, it's like pulling a rabbit out of the hat. Each municipality is very different and what they want and stuff like that. So it becomes uh really chaos, right? So I'll tell you a little story about an inspector that I I've ran into a few, right? And it really depends on what their moods are that day, right? So I had an inspection, I was doing a massive project, uh, had an inspection, it was an electrical inspection, electrical inspector that came in and did the inspection, right? So he's going through the plans, he's going through the plans, and then he sees everything that he needs to see, and he sees that uh everything is is in place, right? So I'm happy that I'm gonna get through this inspection, but that's actually not how it works. So this particular city, Lighthouse Point, uh, it's almost like a racket, right? Where they try to squeeze and create, you know, um issues for you so you could do revisions so they could continue to bill um the whole the contractors uh as much as possible. So he's flicking through other trades and looking at plumbing, he's looking at mechanical, he's looking at different aspects that has nothing to do with his inspection. And I and I just remember after looking through it, he he made a comment about something that didn't pertain to him and created a three-week or four-week delay, right? So, because a delay, this is what a delay looks like is I have to update the plans with the city, right? With the architect first, submit it to the city for review, they take two weeks to review it, they spit it back. I have to reschedule my trade for that specific thing, and then now it's four weeks later. This is a dangerous, dangerous precedent. It's a dangerous game because you're really running against the clock, right? So by having a special inspector or having a relationship with a special inspector, it it aids in a bunch of different ways because I could have a conversation with the inspector, my job, my project is not going to be held up. He's gonna tell me the corrections, he's gonna notate it, he's gonna document all of the pictures and everything attached to it, and I can continue to proceed once those things are checked off and once those things are done to compliance, right? So there's a bunch of different advantages uh here, and I'll kind of continue to go down this rabbit hole to explain how this could affect you in the future when you're looking at uh different projects, right? So the second way that uh it helps you is quality assurance. So provides independent verification that materials, methods, assemblies are installed correctly, um, catching issues early, preventing long-term performance failures, uh, etc. So engineers are licensed professionals, right? And their license are on the line when you hire them to be that final checkoff between you, the developer, the contractor, the design team, the specs that are in uh the plans, the as built, everything that's going inside of the home, they act as a separate check and they create the reports that they would finalize and submit to the city. So the special inspector is replacing the municipality uh as the person that's checking the home, uh, ensuring that uh if something happens, you can actually have recourse on them. Whereas in in the story that uh I was looking at, there is no recourse. There's no recourse for the city if they signed off on something and it's defective. There's no recourse, you can't sue them, and it's it's not gonna go anywhere. I'm just I'm just letting you know right now. Um, so because engineers are are licensed, they are to go to um to that. So, like I said, I I referenced this project that the homeowner paid 241,000. There were structural issues, there were uh plumbing issues, there were there were framing issues, there were there were all of these different problems that just made it unsound. And they they they blamed it as if it was a renovation, well addition renovation, that it wasn't um it wasn't caught because the means and methods are different than building a home or something like that. Um it's borderline, it's BS. So um that that that didn't help uh the situation at all. And it also showed the importance of why having an inspector that uh there is is so important. So I so let's talk about the third aspect of it. So it's risk reduction and and liability protection. So it reduces the risk of structural failures, um, safety hazards, and future lawsuits. So when a we use specifically a structural uh inspector, and they're looking at and calculating load calculations, they're looking at uh things like grade beams, they're looking at the structural components on it, and that's very important in getting that sign off. They're looking at every clip that's connected to the to the framing, and and it's built as built, you know, uh as they call for the size screws that are going into the lumber. These are the types of jargon that I don't want to hit you with, but understanding that all of these aspects are very important in putting together a great home. Now, this is important long term because you do you do not want to be labeled as a developer that's putting out uh sub subpar uh below grade product, right? It will always catch up to you in the long run. You're there to uh build community, keep your name clean as you're building, and continue to build your um resume as as a builder that someone can trust, as a developer that someone can trust and and continue to come back to. So, um your name, you only get one chance at it. Uh so I highly recommend that you you use best practices when you're looking at construction and finishing, right? You don't want to be like the big conglomerates. I I have a story right now. This literally just happened probably in the last like three weeks. So my wife has this friend, and she goes to her house, and she's kind of like in and they just had some testing done. They had bought a house in 2020. There's a big conglomerate builder, and uh she did some labs and tested positive for mold, right? And then her husband is my friend, which is a forensic structural engineer. He gets up in the attic and he's looking, and then he he he finds something, some wetness or whatever, and he sees that there was some duct work that how it was component, it was holding water and and all this bunch of stuff, right? So then they had somebody come out and examine it, and pretty much said that their whole their whole duct system wasn't sealed. There was mold in the attic and and they had to get all their ducks replaced, right? So what happened was after they saw that, they had to leave the house for um you know for a week or so to get this done. They notified their neighbors, and then their neighbors started seeing that this issue was pretty widespread with the developer, right? Uh bad reputation. You do not want to be attached to building homes that are going to end up being defective and could harm someone in the future, right? So, you know, one of their friends had uh very large amounts of parts per million of mold behind the walls that gotten down behind the walls, you can't see that beautiful home. Right? These are the types of things that are very important and and that you should know. These are the types of stories that resonate why it's important to keep your your name clean and perform great work, right? Having that special inspector to check that off because uh for you in the beginning, you don't know what you don't know, right? And I can only share so much for you two things that you need to look out for, but you know, through the long run, you're relying on these professionals to put you in the best spot as a developer, right? So uh so that was uh risk reduction, so early problem detection. So it identifies deficiencies during construction process instead of after the project is completed. It's always way more expensive to try to remedy something after the fact, before the walls get closed up, right? And that's something that I learned from uh my mentor is the the walls is what you see, the house is what's behind the walls inside the drywall, the electrical, the plumbing, the HVAC, how that's set up, how how plumb the walls are. That's kind of like what's important, and what the what's gonna make your finish the finish, right? And make your home stand out and make your home look different. Those are the types of details that are gonna be important long long term and making sure that you have one of the best products on the market. And if it's up to me, we're putting out some good product, right? So, all right, so uh also saves time and money by correcting issues before they become expensive or hidden. Uh I have an eye for defects, I could walk into any any home, any project, doesn't matter what level of finish it is. I'm finding something that's off. That's just kind of how my eye is trained. And then also, too, because I am in construction, I also understand that none of the walls are plump. Uh, and these are the types of things that are important to me, especially building high-end homes. You need to have these certain types of details because what happens is it will show up in tile work, right? So you could take it all the way up the wall, and then and then that might show, hey, listen, this wall is slightly off 11 16ths, or at least this wall is off a quarter inch going up, and then now by the time it gets all the way up, it's it's it's off more than a half inch. These are these are the types of things that are important um um things to know and understand, right? So also too, uh the fifth uh uh the fifth benefit is credibility with lenders, insurers, and municipalities, right? They they they they hold that uh third-party uh inspector in high regards, right? So lenders and insurance companies uh often see third-party inspectors as reducing investment risk, which it does, right? That's an additional eye that's making sure things are verified and their license is on the line, right? So local building departments may require a special inspector. One of the things that they make you do is sign a special inspector form. He fills out all their information, and now he knows, hey, here are the things that I need to report to them, and then here is the final package that I need to put together for them to sign off and then close the permit, right? So you can set it up so that all of the permits, all of the inspections will go through your special inspector. So very important stuff. All right, so sixth benefit is to uh specialize expertise, very important. Okay, special inspectors are trained in a specific system, whether it's structural HVAC, whether it's it's plumbing, whereas building inspectors, what they typically what what they literally do, all right. So building inspectors tend to want to get people in a specific trade, and so they have some built-in experience, if that's how that building department works. Or they just take a test and based on the test, then then they put them out in the field. And then when they go out in the field, then they'll gain their experience by seeing things visually for the first time, cross-referencing it with code. Obviously, if they have been in a specific trade for a while, they already kind of know and understand what certain things need to look like. Um, but you can just take a test and be an inspector, right? There's a big drop-off compared to a structural engineer that this is all that he does. This is what he studied, this is all that he does every day, day in and day out. He computes um load calculations or structural elements, he understands the the importance of having certain straps for your uh trusses, etc. So this is like very important stuff. There is a level uh above when you're using a special inspector. Alright, so number seven, the seventh benefit is to protect the owner's investment. You as the developer need to be uh I call it playing offense and defense. Um, and you know how I categorize that is offense is making sure that your numbers are right and then you can execute quickly and equals profit. And then defense is also making sure that you have the proper documentation and you're avoiding litigation. So having the proper documentation and having all of this stuff documented puts you in a better position when you do go to sell the home to an buyer. Hey, listen, I had all these inspection reports, I could see the pictures of you know the things behind the walls, I know how it was done, da-da-da-da-da. And now, if you ever had a legal issue, you have all of these documents to reference as your quality of work, your scope of work, your your um uh level of professionalism with using the engineer. Now he could testify on your behalf, etc. Right? These are there's a lot of benefits here that we're not thinking of until you you are activated in your development and you understand that, hey, this is a very litigious uh society, right? So uh protects the homeowner, provides peace of mind, uh that uh corners isn't being cut by contractors or subs. Always double checking the subs work. Um they're always double checking and making sure that it is all all the way up to stuff, stuff, snuff. Uh so the la the last piece I'm gonna share with you is improved uh communications and transparency, offers a natural third priority perspective between the developer, contractor, and design team. Uh detailed reports creating uh creating a transparent trail of accountability, and you you want to be, like I said, on the right side of litigation when it comes to taking on this level of risk in these type of projects, right? So I can't stress the importance of this anymore because I always use a spectral inspector on my projects. Let me know what you think. Let me know what you think about this training. Let me know, uh, comment in the details if you haven't already. Hit like and subscribe. It definitely helps the algorithm uh moving forward, and I hope you got value from this training. Have a good day.