She needs to find out who's who at the building dept. and raise Cain in writing with the people above both these inspectors.
She's right, she payed once, and they dropped the ball! She should demand results, and be an absolute pest until she gets them.
She could probably rewire the whole place for the price she'd have to pay an attorney.
Maybe the inspector still works there?
(And get that stupid builder into it too)
