When I was doing electrical work in NJ, each town or borough hired an independent inspection agency. These inspectors were not employees of the town at all. Our permit fees pretty much covered their charges, so it wasn't about the money at all. These guys were true third parties and we got along very well. The inspectors were in a position where they could look at things in an unbiased manner. Those were good times. The state still had the ultimate authoritative power in the event of an impasse, however those rarely occurred.
I have not done electrical work in NJ since the early 80's, so I don't know how things have changed if at all.
I will admit that government employees acting as multi-inspectors are an accident waiting to happen. They hire cheap, pay cheap and we find ourselves paying the price. We have to fight their incompetence, either by doing work over again or sitting through the lengthy protest process. It's cheaper to do the job over.