City Controller reports L&I inspectors’ negligence jeopardizes safety of Philadelphia workers and residents.

An audit conducted by the Philadelphia City Controller’s Office has uncovered significant deficiencies within the Department of Licenses and Inspections (L&I) regarding safety oversight activities related to construction projects. The findings indicate that inspectors failed to adequately validate contractors’ licenses at construction sites, performed inspections without the proper documented certifications, and neglected to conduct some mandated inspections. These lapses have raised serious concerns about the safety of both construction workers and local residents.

The Controller’s Office initiated the audit for the fiscal years 2023 and 2024 amid mounting complaints from Philadelphia residents regarding unsafe construction practices. The report, which was released on Thursday, stated the necessity of ensuring that construction activities across the city are conducted safely and in compliance with legal standards.

City Controller Christy Brady emphasized the importance of rigorous inspections and legal compliance in her remarks during a press conference. Since her appointment as city controller in December 2023, she has prioritized oversight of L&I’s management of unlicensed contractors and workplaces. This latest audit builds on a previous investigation that highlighted L&I’s failure to effectively track hazardous building conditions, which often resulted in houses becoming uninhabitable due to neighboring construction.

Key aspects of the audit reveal that some inspectors, totaling eight employees, conducted 1,057 residential and commercial fire inspections without the necessary fire inspector certifications. Furthermore, four inspectors performed 229 residential mechanical inspections without proper documentation. Notably, during site visits, inspectors failed to verify contractors’ licenses, leaving the quality and legality of the work questionable. They also did not investigate the employment status of workers, which raises concerns over worker misclassification—a practice that often denies employees access to essential labor protections.

The audit surveyed various construction sites, including those owned by reputable institutions such as the Children’s Hospital of Philadelphia and the University of Pennsylvania. In reviewing 40 residential building permits, auditors found that a majority lacked necessary documentation, noting that required inspections were not recorded for a significant number of permits. Specifically, out of 73 required inspections, 33 were undocumented.

In response to the audit’s findings, L&I and the city administration stated that they are committed to enhancing service delivery, increasing compliance, and improving documentation practices. The administration has pledged to strengthen the capacity of the L&I’s Audit and Investigation Unit and to develop new systems to monitor employee training and certifications.

Moving forward, both Controller Brady and City Councilmember Michael Driscoll intend to collaborate with L&I to ensure meaningful progress in addressing these critical safety issues within Philadelphia’s construction sector. They acknowledged the necessity of providing the department with adequate resources to enable it to fulfill its essential role in maintaining public safety and regulatory compliance.