I know this is a 2 month old post but thought I'd add one more point: Why does the insulation contractor care? He doesn't fail electrical insp. NEC and NEMA violations are irrevelent to him as long as he can back up/substantiate his answer that it's "code compliant"; after all, he just did what the customer wanted.
(I've had this prob on a smaller scale and I don't agree with him, just playing devil's advocate)
