Inspections
Two different inspections happen during a capital project, and they check two different things.
A capital project is inspected by two separate parties who check different things. The local building department, the authority enforcing the code adopted in that jurisdiction, inspects permitted work against code. Separately, the project's design professional inspects the work itself and certifies substantial completion, the point the project is usable and warranties begin.
Two inspections, two different jobs
A board that hears "the inspection passed" needs to ask which one. A permit inspection checks that the built work matches the code the local jurisdiction adopted, wiring, framing, fire separation, and so on. It is performed by the local building department, not by the association's architect or contractor.
Which office performs this inspection, how many rounds it takes, and what triggers final sign-off vary by city and county, and by which edition of the building code that jurisdiction has adopted.
"[The IBC] is intended to be adopted in accordance with the laws and procedures of a governmental jurisdiction."
Source: International Building Code, product and adoption page, International Code Council
The board's own design professional runs a separate inspection: a site observation of the contractor's work against the contract's drawings and specifications. That inspection is not a code check. It is how the architect or engineer decides whether the project is ready to move to the next milestone.
The inspection that starts the warranty clock
When the design professional's inspection shows the work is usable for its intended purpose, even if small items remain, the standard next step is a certificate of substantial completion.
"[It] was developed to establish the date of Substantial Completion for the purpose of commencement of applicable warranties and to allow the Owner to occupy or utilize the Work."
Source: Instructions, G704 Certificate of Substantial Completion, American Institute of Architects
That certificate is not the same claim as "the project is finished." The same inspection process produces a punch list: the items the contractor still has to complete or correct, which the design professional verifies before the list closes out.
What the board should track
Before the board approves a payment tied to a milestone, ask two separate questions, not one. Has the local building department signed off on the permit inspection for that phase? And has the design professional inspected the work and, where the contract calls for it, issued a certificate of substantial completion?
Confusing the two is the most common way a board gets surprised. A contractor can pass every permit inspection and still leave contract items open, and a project can look finished on a walkthrough while a required permit inspection has not yet happened. Ask for both, in writing, before retainage or a final progress payment goes out.
Check yourself
Answer before you read the explanation, recalling it is what makes it stick.
Check your understanding
The contractor tells the board the roof replacement is finished. The city has not yet signed off on the permit inspection. What should the board do before releasing final payment?
The architect issues a certificate of substantial completion, but the punch list still lists touch-up paint and a sticking door. What does this mean for the project?
A board wants to know which office decides how inspections run during a capital project, since this seems to vary a lot by city. Where does that authority actually sit?
Sources
- International Building Code, product and adoption page, International Code Council
- Instructions, G704 Certificate of Substantial Completion, American Institute of Architects
Capital Projects
Once every required inspection passes and the punch list is closed, the project moves into closeout.
Which office inspects permitted work, how many inspections a project requires, and what triggers final sign-off vary by city and county. Whether the association's contract ties final payment to the architect's certificate of substantial completion depends on the contract the board signed.