I am a newly licensed inspector and have just been contacted for what might be my first job. It is from an investment group that wants me to perform inspections throughout a new construction project. They are asking me at what phases would be most appropriate / beneficial to perform an inspection and what charge per inspection. After attending the convention last week I met with a few individuals that say they have been doing these types of inspections semi frequently but did not get into alot of specifics with them. I’m hoping that someone my have suggestions for this project. Thanks
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Search the forum for “phase inspections” (Magnifying glass at top right of this page.)
Here’s a start:
https://forum.nachi.org/t/phase-inspections-question/233404/7
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Welcome to the InterNACHI form, Michael!
Best of luck with your endeavors.
I do not know if you are ready for a (3 Phase) New Construction project inspection at this time unless you have many years of multi faceted skills under your belt in the building trades.
And there are actually 4 Phases but most builders ignore the 4th Phase inspection.
Do not think it will be soon. Usually it can take months before you get your feet on the ground to inspect several buildings. You mention it is a new construction project. Could be attached multi family homes. That appears to be the thig these days in my neck of the woods. Commercial/residential.
As well, make sure you ask your insurance provider if you are covered, in case you need more coverage. One ops could eat your deductible quickly.
How much to charge.
Depends upon ‘the scale’ of the development. I did a Phase inspection that had me at the house 5 times prior the pre-drywall inspection. I charged $500.00 dollars every time I went. 3.5 hour dive 2 ways.
Say $500.00 each per-home per pre-drywall phase inspection for a 2400 SQ FT home.
Add another $200.00 when you do the last of the 3-Phase inspection when everything is completed.
I want to be there Pre-pour inspection. To survey the site and look at how materials are stored. That’s me remember.
The new home inspection checklist includes:
Drainage, grading, elevation, Water lines, Soil, Trenching’s, Structural, Columns, Floor joists, Sub flooring, Stud walls, HVAC, Plumbing, Vent, drain, and waste lines. All Bracings, Vapor barriers, fenestrations, exterior coverings, Roof, Drive and Walkways, etc…
Good luck.
Keep us posted.
Sorry Michael, but this sounds like a situation where the blind may be leading the blind. If these investors don’t have an extensive background in home construction and it’s their plan to build several houses they really need to start by hiring an experienced project manager. A good project manager coordinates all the building trades, suppliers, develops and manages the work schedule and project budget. If your area includes union workers then the project manager must also manage the union work force, which requires knowledge of each trade’s rules and responsibilities. Home inspectors should not be getting paid by investors that likely expect you to find every code violation to protect their investment. IMO phase inspectors should work for the home buyer not the builder.
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First all reasonable phases of inspection are beneficial to the buyer. However the number would be determined by the buyer themselves. The definition of “reasonable” in the context of phase inspections can be objective. However, in my opinion, there are several aspects to use for determining this.
- At what point would important details be covered over so they can not be visually inspected and no other means is available to at least help determine if a specific aspect has potentially been properly performed.
- At what point would corrections either not be possible (even with an Engineered change) or extremely expensive to correct? Obviously we are not concerned with the Builder’s expenses in correcting an issue but this plays into the next aspect.
- How willing are the clients to push the Builder to correct issues? Are they ready to go to court if need be to correct an important issue?
These are seven possible phases that can be done that would encompass the aspects above and also help the client with less fighting.
- Subterranean utilities (plumbing, electrical, etc.) - Once the pad site has been prepared these trades will go in to place these utilities before being covered over at which point important details would no longer be accessible to inspect.
- Pre-pour just before foundation concrete is poured - A proper moisture barrier may cover the pad surfaces but even then many aspects of the pad can still be determined and at least enough to determine if the pad was not formed properly.
- First floor framing - This encompasses all aspects above.
- Second floor framing if more than one story - Again this covers all aspects above. Obviously for your safety it is best done after interior flooring has been installed as well as exterior sheathing. You may lose out on some details but framers are creatures of habit. Typically they will do everything the same way and if they screwed up the first floor they may screw up the second floor even though you can’t see a particular detail.
- Pre-drywall before insulation and drywall are installed and before any exterior cladding and wrap (if used) have been applied. - Obviously insulation in walls and ceilings can obscure many important details.
- Insulation - After insulation is installed and before drywall is applied.
- Final - Before the closing.
There are other inspections that can be performed between these but if all corrections were performed then issues occurring after this are not as critical and are easier to correct.
You are not an Engineer and not an AHJ or other licensed/sanctioned Code Official. However you must be able to read plans and you must be intimately familiar with the Building Codes and local amendments the Builder is required to use for the construction project as well as the material manufacturer requirements for the more popular materials used. You are not there to perform an engineering review as that would not only take way to long but also most likely violate any State Engineering laws. You are not there to perform an official Building Code review since there are many aspects that the Codes do not cover or are superseded by the engineered plans for the home. However if you are familiar with these things you can determine if a potential issue is present. Also by being familiar with these things you can reference them in your report which gives your client more ammunition to force a Builder to correct issues found.
As for what you should charge that is entirely your decision to make. If you perform the inspections and write the report properly it will take time and you should charge accordingly. If you lowball it you will no doubt obtain the work as well as the very high potential of liability if you do something wrong. If you lowball the fee you will realize after the first inspection (especially in a multi inspection situation like this) that you are losing money and will have no choice but to continue providing the same level of service for the lowball price. Also if you lowball it you will obtain referrals as a result if you did the job right. At that point you will have difficulty charging the next client a proper fee as they will most likely know what you lowballed on the last client for.
Now that you have that please do enlighten us all on your actual background and qualifications. Others may have other good advice based on that.
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Thanks Larry. Appreciate your solid feedback.
Yeah Emmanuel - That is some real good info. I have been remodeling for 25+ years. My brother in law was a contractor and had me on site in my teens. I am totally comfortable from the demo to the framing all the way through the trim work. Have done a lot of plumbing and a lot electrical and essentially been involved in every aspect of construction. Worked with homeowners and contractors and have done mostly residential but quite a bit of commercial. If I don’t do it … I know who does. I thank you for your info and responding so promptly!
Hi Randy. Thanks for the reply to my post. I fully get your point of view. I am very experienced in the building trade. However I am not seeking work as a project mgr and they did not ask that of me. (I would of told them …no) This field allows one the opportunity to do work for the homeowner, commercial and insurance. After the trade show I am coming to realize that phase inspections are rather common as well. They contacted me for this service and I will by all means do my best to provide them that. I am hoping that they will turn into a long term client.
Hi Robert - That is the kind of positive info I’m needing. There is no doubt a lot to constructing a building “properly” from the ground up. And there is a lot an inspector would need to be knowledgeable about. But my understanding from day 1 is we need to be diligent in our observation and reporting but are job is not code enforcers. Be clear with the client as to what they are expecting and what I will deliver. If we can agree then they have hired an inspector who hopes to exceed their expectations. Thanks again!
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We can often overcomplicate things in our minds. The client is asking for your recommendations and why. I think the term “phase inspection” has muddied the waters here.
I would recommend pre-drywall and a final if I were asked. Others may add additional inspections such as pre-pour, etc. But now you have my 2 cents. Best of luck!
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Hey Brian - Thanks for your input. I’ve been doing some digging and coming up with what you say. Most seem to do the pre pour as well. Just hoping the contractor has good subs that actually have pride in their work!
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Michael, I’m interested in learning more about the construction background of this investment group and their expectations for hiring you. Have they already chosen a single contractor to handle all the work?
I partnered once with a seasoned realtor who worked with two contractors to build and sell homes. I’ve collaborated with this realtor for over 20 years, so she reached out to me on behalf of the group to conduct phase inspections on their first project, which was already underway.
The day after I was contacted, I visited the site and found that their concrete subcontractor had already poured the footings and installed about 80% of the concrete forms and reinforcement. The only plans available were a basic floor plan from a generic house plan book, the kind you’d find in a bookstore. The vertical reinforcing steel they had installed was #4 bars spaced 48 inches apart. These were intended for 9-foot walls that would be backfilled with heavy clay soil excavated form the basement. According to the 2018 IRC, the reinforcement should have been #6 bars spaced 32 inches apart. Additionally, the vertical steel was 3 feet short of reaching the top of the forms. Overall the contractor had only installed 14% of the required reinforcement.
Within an hour, I sent her a detailed letter outlining these issues and informed her that the subcontractor planned to pour the foundation walls the next day. She shared my concerns with the subcontractor, who then complained to her contractor partners and threatened to walk off the job. Their solution was to pay my full fee and terminate the phase inspection contract. I suspect their initial intention was to use my involvement to help market the home as professionally inspected, but they would likely have blamed me if any problems arose later.
From that day forward I do not perform phase inspections with out a full set of architectural plans, including structural details stamped by an engineer.
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Hey Randy - I am not yet aware of how much construction knowledge this particular group has. I have let them know the phases (3) and what each would entail. But if they wanted more I would certainly do that. I stated that I would like access to the plans to verify some details. However I have also made it clear I am not a code enforcer nor their project mgr. I actually talked to the contractor and told him that they hired me and he took it in stride. I have been reading about contractors getting upset and yada yada but I’ll just see how it goes. Thanks
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My advice is to stay away from them . You will serve as a middle man between the owner and builder. As an inspector you will be the one responsible for anything that the subs don’t do correctly. I’ve done several of these and every one I did was a PIA.
Hey John - I understand what you’re saying. I have had several conversations with him and and I sent him a “proposal” with a disclaimer stating that I am not a project mgr making any inspections pertaining to code compliance. This is a “visual only”… that a phase has been completed. He has an arrangement withe the GC to release add’l funds after each “phase”. He is in south Florida, hired a GC from Orlando to construct in the town I live in. I guess he doesn’t know this GC very well and doesn’t want to pay an actual project mgr? We “over the phone” agreed he just wants some photos of each stage and a brief summary of observations before releasing the next draw. So, I composed an email with these comments with the disclaimer I mentioned. Haven’t heard back? Do you think those disclaimers would be sufficient to cover my… Thanks for your thoughts.
No.
Once you “sign off” on a phase, he cuts a check. And later it’s learned that the phase wasn’t completed (correctly, totally, or whatever), and you’re left explaining why.
Why did you contact the contractor? Why were you concerned he might get upset? Is the client still radio silent? Perhaps contacting the contractor has effected the deal?
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I asked if it was a two story and when they thought the timeframe for the first inspection would be he said he was not sure and did I mind contacting the GC myself and gave me their phone number so I ended up talking to the guy for a few minutes and that’s where it’s left at this point
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My advice is to write a good contract protecting yourself. You don’t want to be responsible now or in the future should errors in the construction arise. Pictures alone don’t disclose adherence to building codes. Be very specific in the contract to what you will be responsible for. Frankly I would stay away from them. Good luck.
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On Fri Feb 28 06:46:15 EST 2025 “Michael Morris via InterNACHI®️ Forum”