Revenue.
Although permits with fees required that are not followed up on by an inspection process are called "taxes".
I mean I get it. The city shouldn't be liable for the **** *** work of builders, that's a private contract between owner and builder. The inspection process is generally there to address a min quality of work and "typical" things - at least here - like homes over allowed height, set backs, and a number of other "common" violations.
Do I really think my local inspector is going to flag something, say if one of our trusses fell off a truck and didn't get installed? I doubt it.
But the upside is ALL of this stuff is leverage when you're getting close to cutting that final check on your home. It's just ashame here that the home "passed" and apparently is so defective that it needs tear down. The inspector "moved on" (details TBD).