The guys at my old shop ran into a version of this...

The GC we'd been doing work for sold the last house owing us $15K. The foundation was poured, and we were waiting for the splinterers (excuse me - framing guys) to finish the outside, so we could work on the inside. Put up a temp service, and filed for the permit. Everything got WAY jumbled up and behind schedule. We were supposed to start in May... They finally started framing in June... you know how it is.

Well, after numerous haggles with GC, where he wanted us to start even though he owed us from the LAST job, the boss finally got into a pissing contest, which ended with a threat of a lein against the property.

Didn't hear anything from my foreman, until one day he was driving by the site, nad noticed "E.C. 'X'" vans in the driveway. Well, he drives an unmarked utility body, so he stopped in and BS'd with the guys, then stopped by the Village Hall, to have a short conversation with the AHJ.

Something like: "Did X pull a permit for the job on Main Street?"

"No, why would X pull one...you guys are working over there, right?"

"Right?"

AHJ went over and "stop work"ed 'em, due to improper permits, and, IIRC, quality of work. He had a few choice words for the GC as well... something about a fine toothed comb.

As always, it pays to be on good terms with your inspectors!