Plan to create private building inspectors in NC raises safety, conflict-of-interest concerns

A proposal in the state House would create a system of private inspectors for commercial buildings in North Carolina, an idea that opponents say could be disastrous.

Posted 11:50 p.m. Sep 23, 2021 — Updated 11:50 p.m. Sep 23, 2021

Laura Leslie

, WRAL Capitol Bureau chief

RALEIGH, N.C. — A proposal in the state House would create a system of private inspectors for commercial buildings in North Carolina, an idea that opponents say could be disastrous.

House Bill 865 would allow builders to select a private inspector of their choice, instead of local officials, to sign off on their work. The inspectors would be certified by the North Carolina Code Officials Qualification Board.

Bill sponsor Rep. Mark Brody, R-Union, said the change would help overworked inspection departments, especially in smaller towns.

"They have to beg, borrow and steal from surrounding municipalities and counties in order to get these inspectors," Brody told members of the House Finance committe on Thursday. "They can actually use this system to say, 'OK, go ahead. We're going to want you to pass it on to a private inspection system.'"

Under the proposal, the private inspectors would be immune from liability for mistakes or even negligence. Brody said that’s because they’re performing a government function, but Rep. Deb Butler, D-New Hanover, called that absurd.

"If you're paving the roads with your private business or if you are hauling trash in your private business, which are governmental functions, you don't have immunity," she said.

Allowing builders to choose their own inspectors would almost certainly lead to backroom deals and fraud, Butler said, which could have tragic consequences.

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"We're talking about public safety," she said. "We have seen buildings recently fall in Florida and hundreds of people die."

"The inspection departments were completely eliminated from any wrongdoing on this, on that project itself," Brody countered.

Florida has a private inspection system similar to the one Brody’s bill would create. But he noted public officials, not private inspectors, reviewed the construction of the Champlain Towers South condominium high-rise that collapsed in June.

The Code Officials Qualification Board also is against the bill, echoing some of Butler's concerns.

"North Carolina jurisdictions now provide inspection by individuals with no financial interest in the project and who inspect to protect the citizens of North Carolina," board Chairman Bill Thunberg wrote in a letter sent to lawmakers. "What safeguards are going to be put in place to prevent contractors from simply hiring the inspector that will pass their jobs, irrespective of code compliance?"

"In summary the effect of this legislation would be to dismantle both the state and local framework for training, certifying and disciplining those who enforce the North Carolina State Building Code," Thunberg said in closing his letter.

House Finance didn't vote on the bill Thursday, and it's unclear when the bill might move forward. It's passed only one House committee since it was filed in early May.

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