Would Privatizing Building Inspections Streamline the Construction Process?

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A new Tennessee law will allow real estate developers to hire their own private building inspectors. Supporters say the law will cut down on lengthy wait times for inspections, but opponents say it carries significant risks.

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Would Privatizing Building Inspections Streamline the Construction Process?

A new Tennessee law set to take effect on October 1 aims to reduce building inspection delays by allowing developers to hire private companies for safety code inspections. This change, which has been met with approval from real estate developers, is part of a broader effort to address the state's housing shortage by streamlining the construction process.

The law, initiated by Governor Bill Lee, permits developers to bypass city code departments and the State Fire Marshal’s Office by using private inspectors to check for environmental, safety, and building violations. Governor Lee, who previously worked in the construction industry, has made this measure a key policy priority, arguing that it will help expedite building projects in Tennessee’s fast-growing communities. “A bureaucratic permitting process is bad for everybody but the government,” Lee said earlier this year.

Proponents of the law, such as Dan Mitchell of the Home Builders Association of Tennessee, believe it will alleviate inspection backlogs, which can sometimes delay projects by up to 20 days in certain municipalities. “It’s definitely another tool in our tool belt to help expedite projects,” Mitchell said. He noted that some municipalities lack the necessary number of inspectors to perform timely inspections, leading to costly delays.

But, not everyone is convinced of the benefits of the law. Critics, including the statewide association of code officials, warn that for-hire inspectors might have an incentive to overlook safety and building standards since they are paid by the developers. Steve Elliott, director of development services at Knox County Engineering and Public Works, expressed concerns about potential conflicts of interest and emphasized that Knox County will continue to perform final inspections to ensure life safety features like smoke alarms and carbon monoxide detectors are properly installed.

Under the new law, all private inspectors must be certified by the state, similar to municipal inspectors. Despite these safeguards, the debate continues over whether this privatization will truly benefit Tennessee's construction industry or create new risks in the building process. Developers may enjoy faster inspections, but they may also need to be cautious about the potential downsides.

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