Today I inspected this home. These pics are in the garage. The exterior walls non-bearing are installed on OSB sheathing, essentially acting as flooring on a minor foundation threshold/curb, some areas have no curb and the OSB is equal to the slab. As you can see, I could pull the OSB sheathing out in some areas therefore the bottom plate was somewhat floating. I told my client to talk to the city building inspector as the final occupancy was not yet granted.
I had some discussion with the onsite contractor, he left to make some phone calls regarding my concern. Then, the local building inspector just showed up to conduct final occupancy. My client asked the question regarding the OSB sheathing and the hot water tank installed in the garage with no pan and drain. The City Building Inspector said it was all fine due to the OSB sheathing is acting just like flooring and the hot water tank does not require pan/drain as it is a non occupant area.
Anyways, my concern is the fact that the OSB sheathing is not under compression in some areas therefore the bottom plate is somewhat floating. Furthermore, the hot water tank is located next to the occupant door into the building with no threshold (see the pic). From a performance evaluation is there not potential for the hot water tank to cause water damage under the door sill? Your opinions would be greatly appreciated and any recommendations on how to write this up would be helpful. Thank you.