After the on site inspection, I spoke with AHJ off site(towns general building insp.) to find out whats up; The HO was instucted that if any walls were exposed and any mech/elec/insullation were needed, such areas shall be treated as new work,this was the condition for his permit, but HO did not comply and insullated/sheetrocked then called me. This was not conveyed to me. I was aware of the 51% demo code and was leary when I quoted job seeing all this new rock and mentioned to HO it would have been easier to wire prior to rock install. I intentionally wrote on elec permit application old work without service upgrade knowing more elaborate elec would be neccessary. Did not release estimate to HO until I recieved my permit via mail. The HO was trying to do renovations without permit, because I looked at his permit date at town hall and it was after mine, obviously the AHJ knew it too. Thanks for the interest fellow contractors. Ravin