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Builders back third‑party inspections; inspectors and unions warn of safety and budget risks

Senate Community and Urban Affairs Committee · May 11, 2026
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Summary

S-31-74, which would let owners hire private on‑site inspection agencies, drew sustained opposition from municipal construction officials and plumbing inspectors who said the change risks conflicts of interest and safety lapses. Builders and developers argued delays justify a private‑inspection option; the committee released the bill but senators pledged further stakeholder talks.

The Senate Community and Urban Affairs Committee on Monday released S-31-74 after a contentious hearing that split builders and developers from municipal construction officials and trade unions.

Municipal officials warned the bill would create potential conflicts of interest and degrade local accountability. Michael Tulene Jr., a certified floodplain manager and municipal construction official, urged senators to vote no, saying private inspectors unfamiliar with local flood hazard or coastal rules could miss critical requirements and leave residents with unsafe buildings. “If that inspector misses a critical flood venting requirement or foundation height, one of two things can happen: the error could financially ruin the resident, or it could lead to loss of life,” Tulene said.

Speakers representing municipal inspection associations and the New Jersey Plumbing Inspectors Association highlighted budget impacts: if developers contract privately, municipal building departments could lose fee revenue and struggle to staff and sustain services. Ray Keeley of the plumbing inspectors cited a state survey he said found 97 percent municipal compliance with inspection duties and argued the bill would harm that majority.

Builders and industry groups said the bill is a practical remedy for chronic inspection delays that add cost and schedule risk to projects. Jeff Kolakowski, CEO of the New Jersey Builders Association, said the statute would provide a remedy for “problem children” — jurisdictions that fail to meet existing three‑day inspection targets — and urged senators to retain a private‑inspection option with guardrails.

Senators voted to release the measure but several members said the bill will require negotiated amendments, including conflict‑of‑interest protections, qualification standards for private inspectors, documentation and municipal oversight to preserve life‑safety enforcement. The Senate leadership’s office told the committee it will convene follow‑up meetings with affected groups before the bill advances further.

The release advances S-31-74 to the next legislative step but does not enact the changes described in the bill.