HomeMy WebLinkAbout26-0040 - 2026-03-31 - Informal ReportINFORMAL REPORT TO CITY COUNCIL MEMBERS
No. 26-0040
di;Ttp To the Mayor and Members of the City Council March 31, 2026
r',° Page 1 of 3
V.
�O Y
rrn SUBJECT: THIRD PARTY BUILDING PLAN REVIEW AND INSPECTION
PROGRAM
The purpose of this Informal Report is to provide information about the City of Fort Worth's Third
Party Building Plan Review and Inspection Program. Additionally, this report highlights recent
legislative bills that sought to enable third party plan review and inspections statewide. Though the
bills did not pass in the most recent legislative session, staff anticipates that there will be future
interest in the next session.
City of Fort Worth Third Party Plan Review and Inspection Program
In 1999, the City of Fort Worth introduced the first third party plan review and inspection program
in Texas. The program allows applicants to hire approved third party organizations to complete
plan reviews and inspections for compliance with the Fort Worth Building Administrative Code. The
use of third party plan review and inspections organizations is authorized by Chapter 7-1, Section
117.1 of the City Code. Approved third party organizations are authorized to perform plan review
and/or construction inspections associated with building permits on private property within the City
of Fort Worth in place of city personnel.
When a customer chooses to utilize the City's third party program, the customer contracts directly
with a pre -approved third party organization of their choice. The third party organization then serves
as the agent for permit applications and interactions with the City regarding the building permit(s).
Compensation for services rendered by a third party organization is between the customer and the
third party organization. The City does not regulate or control the fees charged by third party
organizations.
When a third party organization is engaged for plan review services, the third party reviews
supporting documentation such as plans, plats, documents, designs, developments, reports,
studies, surveys, etc. prepared by persons or entities other than the third party organization for
compliance with the adopted codes (Building, Residential, Mechanical, Electrical, Plumbing,
Energy, and Existing Building Codes as appliable). These documents are provided to the third party
organization by the customer directly and independently of the City. The third party organization is
responsible for plan reviews to ensure compliance with the City's adopted codes as well as
packaging and submitting all plans and documents to the City for permitting and additional reviews
outside the scope of the third party process.
Whan a third party organization is engaged for construction inspections, the third party is
responsible for performing all prescribed on -site inspections of the project to ensure compliance
with the adopted codes. Contractors are responsible for requesting inspections through their third
party organization. The third party organization is then responsible for documenting and reporting
the inspections in the City's system of record - currently Accela Automation. For commercial
building projects, the City of Fort Worth inspectors perform a final inspection of all building and
trade permits prior to project close-out and Certificate of Occupancy issuance.
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS
No. 26-0040
di;Ttp To the Mayor and Members of the City Council March 31, 2026
r',° Page 2 of 3
V.
�O Y
rrn SUBJECT: THIRD PARTY BUILDING PLAN REVIEW AND INSPECTION
PROGRAM
The City has stringent requirements for approval of third party organizations including reporting,
minimum insurance, indemnification, prohibition of conflict of interest, and qualifications for
personnel. Additionally, the City retains the right to conduct quality control reviews and, as
appropriate, take corrective action regarding the third party organizations or their employees,
including temporary suspension or complete revocation of approval to operate in Fort Worth.
State Legislature Past and Potential Future Interest
During the 89t" Texas Legislative Session, multiple bills were introduced that would have required
cities statewide to allow third party plan review and inspections. While these bills did not pass the
legislature, staff anticipates similar bills will be introduced in future sessions. Notably, the proposed
bills lacked many of the safeguards that have helped the City of Fort Worth's Third Party Program
succeed since 1999. The following provides a comparison of the City's current program and key
differences from the generally proposed legislation.
City of Fort Worth
Reporting
Detailed Report Required
Timing
Inspections documented in real time
in the City's system of record
Insurance
$1 M per occurrence, $2M aggregate
Indemnification
Yes
Conflict of
Detailed restrictions including limits
interest
on how much income can be derived
from a single entity
ICC certifications and applicable
Qualifications
state license specific to work being
inspected
Quality control
Allowed (currently 10%5 follow up)
Discipline
Suspension and/or termination of
contract
Proposed Legislation
Reasonable report requirement
allowed
Within 15 days after the review or
inspection
$500K per occurrence, $1 M
aggregate
Yes
Limited to applicant/owner or a person
whose work is the subject of the
review or inspection
ICC certified to inspect buildings,
though certification not specific to
work being inspected
Prohibited
Termination after 5 violations
The most concerning aspects of the previously proposed bills are the lack of specificity in the
qualifications, insufficient conflict of interest prevention, and vague/weak quality control provisions.
The previously proposed bills would have allowed any "individual certified to inspect buildings" to
inspect any building within a jurisdiction. This would create significant life safety concern. For
example, under this language someone with an ICC certification as a masonry inspector could
approve gas piping or electrical work. An individual certified as a residential plumbing inspector
could approve high rise structural inspection. The potential for conflicts is extensive. In contrast,
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS
No. 26-0040
di;Ttp To the Mayor and Members of the City Council March 31, 2026
r',° Page 3 of 3
V.
�O Y
rrn SUBJECT: THIRD PARTY BUILDING PLAN REVIEW AND INSPECTION
PROGRAM
Fort Worth's third party program already includes trade specific certifications and licensure as a
condition of approval to provide plan review and inspection services.
Another weakness in the proposed legislation is insufficient conflict of interest protection. While the
previously proposed legislation prohibits plan review or inspection of work by the applicant, the
owner, or the person who did the work, it does not prohibit family, relatives, a subsidiary or sister
company from providing approvals. Additionally, it does not account for inspection companies who
derive 100% of their revenue from a single builder or construction company allowing said company
undue leverage over the review process. Fort Worth's ordinance already includes protection
against all of these potential issues.
For these reasons, Development Services and Fort Worth Fire staff worked with the City's
legislative partners and stakeholder groups to educate lawmakers. Staff testified at hearings, wrote
white papers, and met with lawmakers to highlight staff's concerns and provide potential solutions
based on Fort Worth's extensive experience with third party plan review and inspection programs.
In future legislative sessions, staff will continue to advocate for provisions that are similar to what
Fort Worth adopted in order to maintain the health, safety, and welfare of the Fort Worth community.
For questions regarding this information, please contact D. J. Harrell, Development Services
Director, at 817-392-8032.
Jesus "Jay" Chapa
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS