hokie66...sure the concept is flawed..same as many other design/construction/government processes. As flawed as it might be, I believe it has saved lives and huge amounts of property damage.
The SI who is also an engineer has to be careful not to take on the EOR responsibilities....therefore they do not review the design nor do they check the design. Their obligation is contractual and (in Florida) statutory to check against the plans/specs and a specifically filed inspection plan.
Apparent design discrepancies can be pointed out to the EOR for review, but there's no obligation on the part of the SI to do so, nor should there be. Finding one design error then obligates you to find ALL design errors...which are sometimes just differences of opinion between two engineers.