Structural Inspection Services 1

[zero1238]

I'm planning on getting my PE license this year as well as becoming a licensed home inspector. Does anyone have any experience running their own inspection company for residential and structural inspections? I'm just looking for an idea on what it's like and if it's feasible (financially) to be on your own and complete regular home inspections as well as more involved structural inspections as a practicing engineer. Any recommendations/warnings? Any feedback is very much appreciated, thanks!

 

[TehMightyEngineer]

I didn't do many residential inspections but my previous boss started his company as a home inspection company and it blossomed into a general consulting practice and he still did the home inspections regularly. A few things he passed on to me.

-Get setup with realtors as their go-to engineer for inspections, they'll pass you a lot of work.
-Setup standardized forms that cover the common items you see. A lot easier to check off a box than write out notes.
-Make sure you clearly distinguish that you're not practicing engineering. Some states will even go so far as to say that you can't even claim that being an engineer means you provide a higher standard of care or otherwise gives you a leg up over a non-engineer home inspector (I completely disagree with this).
-Get your inspections down to an hour or so for a typical home. You'll have trouble being competitive otherwise. Bill for travel time and inspection as a lump sum.
-Pictures, so many pictures. Keep plenty of records of everything for many years.
-Lawsuits ahoy! Have a solid contract that limits your damages to your fee only. Abandon ship and refund that fee at the first sign of trouble. Be prepared to have to fend off frivolous lawsuits on occasion. Also, clearly specify that your scope is limited to visible items only.
-Overall it's a hard area to make money. My boss would often mention he was considering not doing home inspections anymore (at least when we were busy).

All that said; I felt other than odd jobs when not busy, it wasn't worth it to setup a business where residential inspections was the main focus or even a major component. Still, I know a number of engineers who do this regularly so it can be done. I'm sure google will turn up a lot of other details.

As for structural specific inspections, I've done plenty of those and find them far more rewarding/profitable than residential inspections and much less risky. Plus they often open doors to full structural design repairs. The only downside is they're not as available as residential inspections and if they do devolve into lawsuits they can potentially be very big (think career ending for some of the most disastrous ones). So maybe not the best place to start out as a new PE (but not impossible).

Professional Engineer (ME, NH, MA) Structural Engineer (IL)
American Concrete Industries

https://www.facebook.com/AmericanConcrete/

 

[XR250]

There was a competitor of mine who did general home inspections and had an engineering practice. The board ruled that it was a conflict of interest.

 

[Once20036]

So you want to go through all the trouble of getting your PE license, and then open a business where you don't need a PE license and can't bill for your PE license?
I`m not sure I understand what niche you're looking to fill, or how you`ll compete with home inspectors who don't have a PE.

 

[dik]

TME's got a pretty good overview... one item, the third one, you should be careful with. Just because you are 'not practicing engineering' may not limit your liability. If the courts deem you to be an 'engineer' you can be held to that standard... even if you don't seal anything.

Dik

 

[XR250]

I won't do structural inspections (review is a term that the lawyers like better). Too much liability. I will, however, look at issues that a homeowner or home inspector has found and wants a further review.
Much easier money as it usually only takes 20 minutes or so and I charge a flat fee to go out there.

 

[BAretired]

Home inspection encompasses more than just the structural discipline. You would need some knowledge of code requirements respecting architectural, electrical and mechanical as well as structural items.

BA

 

[kmart30]

I would stay away from home inspections because its so much more than structural like BA said above. Yes, you could probably get a good amount of work quickly from realtors but you do open yourself to alot of liability. The home inspectors around here get anywhere from $350-$600 per job depending on the size but is it really worth the time it takes to look at every square in of a house and take on all that liability? Especially when you are dealing with homeowners who have no clue about construction and think everything should look like pintrest and HGTV! You can make alot more in half the time only doing structural inspections (Structural Observations and Recommendations) and you are limited to only the structural components not all the other components that come with a typical home inspection. Yes you wont get as much work if you go that route but why waste your time when you could be doing design work or other things which you are getting paid for at a PE rate.

I supplement with these type of inspections but I only look at the structural components and I make it clear its based only on my observations, nothing that is covered or hidden, Im not doing any calculations, and I recommend typical types of repairs but keep it very general. Also, if it is a real estate transaction whether you are working for the buyer or seller and especially the buyer make sure you request full payment up front! If they dont like it then move along; I get alot of realtors and home owners that have no clue and usually they just say "I dont know what I need, the underwriter said I need a structural engineer or else I cant close" then they cry about a price over what is typically paid to a home inspector.

In my opinion its not worth doing home inspections if you are a PE. You can do structural inspections no problem just make sure you have the experience and let everyone know you cant see through walls. Use your time wisely!

 

[Ron]

So many problems with this and so little space to write it all!

Others have noted a lot of the issues with being an engineer and doing non-engineering work. One big one is that as a licensed professional engineer, you are held to a much higher standard of care than a home inspector. Even if the task does not require engineering judgment or activity, if there is a problem it will clearly be brought out that you are an engineer and should have (seen, heard, evaluated, smelled, uncovered, seen through walls or whatever......take your pick) warned.

Another is that you'll be competing with people doing this for $250-$400 (in my area), spending approximately 4 hours on site, writing a report and taking the responsibility.....with an hourly rate yield of $60-$80 an hour. Such rates lower the bar for all professional engineers and demean the profession.

 

[dcarr82775]

Friend of mine has his own consulting firm. He did a home inspection back in the early 1990's. Shortly after the water heater broke, dumped water into the basement, and allegedly resulted in foundation movement from expansive soils. He was ultimately found to be at fault since he was an engineer and should have noticed it. He closed up shop after that.

The moral of the story, don't do home inspections.

 

[zero1238]

Thank you very much for all of the responses. The reason that I was looking at home inspections in the first place was that I was trying to see if I could do structural inspections full time but it didn't seem feasible so I was going to supplement any downtime with home inspections. If you have your PE, you can get your home inspector's licenses without taking the test (in NJ at least) if you have the right experience but I would still take classes on the subjects I was unfamiliar with. Sounds like I need to do more homework on this one but I really appreciate all of the feedback. Thanks again!