N.J. Admin. Code § 5:23-4.14

Current through Register Vol. 56, No. 17, September 3, 2024

Section 5:23-4.14 - Private on-site inspection and plan review agencies; administration and enforcement

(a) Records shall be maintained by the "on-site inspection agency" of all inspections, applications and plans reviewed and any other information that may be required by the municipal construction official or the Department. These records shall be open to Department audit and shall not be destroyed or removed from the offices of the on-site inspection agency without the permission of the Department.

(b) The on-site inspection agency shall provide the Department with the following:

1. A copy of each executed contract and all amendments thereto, including any attachments containing any terms of the agreement, to be submitted at least 10 days prior to their effective date. Any subsequent amendments shall also be submitted;

2. A list of the municipalities served, and a current list of names, addresses and telephone numbers of the agency's designated representatives actually serving as subcode officials or inspectors in each municipality, who may be contacted in connection with routine matters during normal working hours and, in the event of emergency, during other than normal working hours;

3. A list of names, certification numbers, addresses and telephone numbers of all technical personnel employed; and

4. Monthly reports, due on the 15th of every month covering the period of the previous month, setting forth the following:

i. The number of inspections performed under each subcode in each municipality and the number of inspections performed under each subcode in each municipality more than 72 hours after the receipt of an inspection request by the construction official or the subcode official, whichever occurs first.

ii. The total number of inspections, broken down by subcode discipline, performed by the private agency during the reporting period and the total number of subcode officials and inspectors available during the reporting period, expressed as full-time equivalent (FTE). For purposes of this report, one FTE shall be the total number of subcode official and inspector hours worked during the reporting period divided by eight, divided by the number of working days in the reporting period. All days other than Saturdays, Sundays and official holidays shall be considered working days;

iii. The total payments received from each municipality during the reporting period; and

iv. The total amount billed to each municipality during the reporting period.

(c) Except as stated in the regulations, an executed contract in accordance with the Local Public Contracts Law shall be required between the on-site inspection agency and a municipality prior to the enforcement of any subcode in that municipality by the on-site inspection agency. Supplemental private on-site inspection agencies pursuant to N.J.A.C. 5:23-4.16 shall be considered specialized services allowing for the use of competitive contracting pursuant to N.J.S.A. 40A:11-4.1.

(d) The on-site inspection agency shall not collect fees from the property owner, his or her designated agent, or anyone in his or her employ. The municipal construction official shall be the sole agent for the collection of all fees and penalties. This shall not apply to supplemental private on-site inspection agencies performing inspections for an owner or designated agent pursuant to N.J.A.C. 5:23-4.16

(e) Each on-site inspection agency shall have the following responsibilities:

1. To maintain an adequate number of certified staff to review all plans and specifications for all classes and types of construction not reserved to the State.

2. To act in place of the municipal subcode official or municipal inspector and to perform the duties of a subcode official or inspector as defined in these rules, except all notices of violation and all stop work orders will be issued through the construction official's office.

3. To report to the municipal construction official or subcode official and to be subject to his or her rulings, directives, and orders.

4. To provide adequate supervision, so that its employees are prompt and diligent in discharging their duties.

5. To carry general liability insurance, at least in the amount of $ 1,000,000 for each person and each occurrence, to satisfy claims or judgments for property damage and/or personal injury.

6. To process and return all documents, plans, specifications, and applications within the time frame specified by the rules or the contract with the municipality, whichever is the lesser.

7. To provide technical assistance to applicants in the preparation of a construction permit application, if requested by the construction official.

8. To perform all required inspections and reinspections.

9. To perform nondestructive tests, if required by the rules.

10. To give testimony at hearings or in court, if required by the construction official.

11. To prepare all reports to the Department as are required by the regulations or as may be required from time to time.

12. To meet its obligations under its contract with the municipal enforcing agency.

13. To issue documentation and certification, such as cut-in cards, to utilities and or public agencies if required by the rules.

14. To ensure the attendance of all technical and supervisory employees at required training and orientation programs.

15. To carry to full completion and receive all fees on all projects initiated prior to the termination of their contract with the municipality by reason of non-renewal, unsuccessful bidding, Department authorization disapproval or other reason except suspension or revocation.

(f) Except as otherwise provided in this subsection, no person employed by or associated with an on-site inspection agency as an employee, proprietor, officer, director, partner or manager shall, whether directly or indirectly, be engaged in ownership of, or employment by, or contracting to provide goods or services to, any business or employment furnishing labor, materials, products or services for the construction, alteration or demolition of buildings, or for the maintenance of any equipment or building component the maintenance of which is regulated pursuant to this chapter, that is engaged in any such activity within any municipality in which he or she is so employed. Nor shall any such proprietor, officer, director, partner, manager or employee engage in any other work that conflicts with his or her or the agency's official duties, including, without limitation, employment to testify before any construction board of appeals, or to be involved in any court proceeding within any municipality in which he or she is so employed, as a paid expert witness against any construction official, subcode official, inspector or enforcing agency, or in any other compensated capacity, except on behalf of an enforcing agency, or as a court-appointed witness.

1. This prohibition shall not apply to any litigation not involving enforcement of the Code, or as a fact witness; nor shall it apply to any activities unrelated to an action for, or an appeal of, enforcement of the Code.

2. This subsection shall not apply to:

i. The ownership of stock or other investment instrument in any corporation listed on any national stock exchange;

ii. Any such business or employment outside the State;

iii. Any business or employment which is not subject to the regulations.

3. An on-site inspection agency may employ municipal subcode officials and inspectors on a part-time basis. This employment, however, shall be subject to the following conditions:

i. The on-site inspection agency can only employ municipal subcode officials and inspectors. A municipal construction official shall not be employed by an agency in any capacity.

ii. The written approval of the construction official supervising a municipal subcode official or inspector shall be obtained by the on-site inspection agency prior to hiring such municipal subcode official or inspector.

iii. An on-site inspection agency that hires a municipal subcode official or inspector shall thereupon waive the right to bid or contract in the employed subcode official or inspector municipality or municipalities.

iv. No person employed by, or associated with, an on-site inspection agency as an employee, proprietor, officer, director, partner or manager shall be permitted to retain such employment or association if he or she accepts employment with a municipality as a subcode official or inspector enforcing a subcode that was the subject of a contract or proposed contract for which the on-site agency was an unsuccessful bidder at any time during the previous 24-month period.

(g) The amount charged to a municipality by a private agency for work subject to a minimum fee pursuant to N.J.A.C. 5:23-4.20(c)2, or for certificates of occupancy, certificates of approval, and certificates of continued occupancy shall be the percentage set forth in a contract entered into in accordance with N.J.S.A. 52:27D-124.3, times the amount of the minimum fee or fee for a certificate of occupancy or certificate of approval, times the amount determined in accordance with this subsection. For agencies utilizing N.J.A.C. 5:23-4.16 for supplemental private on-site inspection agencies, the fees may be established pursuant to N.J.A.C. 5:23-4.18.

1. In the case of work requiring inspections by four subcode officials or their designees, the allocation of the fee revenue shall be as follows:

i. Building subcode: 40 percent;

ii. Fire protection subcode: 20 percent;

iii. Plumbing subcode: 20 percent; and

iv. Electrical subcode: 20 percent.

2. In the case of work requiring inspections by fewer than four subcode officials or their designees, the allocation shall be among or between the subcodes involved in the proportions set forth in (g)1 above. (Thus, for example, in work involving only the building and plumbing subcodes, two-thirds of the fee (40/60) would be allocated to the building subcode and one-third of the fee (20/60) to the plumbing subcode.)

(h) Where plan review is performed more than one month before the construction permit is issued, or where a project does not go forward after a private on-site agency has performed plan review, then the municipality shall pay to the private agency 20 percent of the amount that would otherwise be due, which amount shall be determined by multiplying the relevant fee set forth in 5:23-4.20 by the percentage set forth in the contract between the municipality and the private agency entered into in accordance with 52:27D-124.3.

(i) Private on-site agencies shall bill for their services at least once monthly. Each bill shall specify the billing period and the amount currently due, amounts already paid, and any remaining balances, identified by permit number and totaled for the billing period.

(j) The bid documents and contract shall specify whether the private agency shall be paid for work performed even if the municipality receives no inspection fee for such work.

(k) Private enforcing agencies shall charge no fees other than the fees set forth at N.J.A.C. 5:23-4.20 multiplied by the percentage set forth in the contract between the private agency and the municipality, unless the supplemental private on-site inspection agency is acting pursuant to N.J.A.C. 5:23-4.16 Private enforcing agencies shall furnish no services other than subcode enforcement or inspection services to municipalities and shall not receive any payments from municipalities for any other goods or services whatsoever.

N.J. Admin. Code § 5:23-4.14

Amended by 50 N.J.R. 1888(a), effective 8/20/2018

Adopted by 56 N.J.R. 469(a) effective 4/1/2024