NFPA 20, 2010 edition, NOTE this is a new section in 2010
4.20.1.4 Where a test header is installed, it shall be installed on an exterior wall or in another location outside the pump room that allows for water discharge during testing in accordance with 14.2.7.2.
I have tested fire pumps with up to 3 lengths of hose and just met the 150% rating of the pump. If you have more then 100-150' of hose unlikely you will get to the required flows. IF you can not get them to move the header outside then ask them to provide calculations from the test header to a SAFE location outside of the building to see if the 150% flow can be achieved. They may have to increase the number of 2.5" test valves to flow more hoses to meet the 150% flow.
BUT on a new install I would say NO, since I would pay for the water damage IF the hose breaks. Also if the test header is in the room, if a hose breaks and water hits any motor or controller you will have a electric shock hazard. That may be another reason to get them to move the test header.
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