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braced wall code

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What's the deal with the so-called braced wall code?  I did a
lateral design on a residential home with a cut-n-stacked roof
and specified shear ply extension to the roof diaphragm at
interior shear walls (required due to shear size of house).  The
designer then added a couple of walls here and there to
just meet the requirements for standard construction (braced
wall requirements).  Thus, he ended up with interior "braced
walls" with gyp board ending at the top plate above which
in some areas there was over 15 feet of clear to the roof
diaphragm.  These walls seem highly ineffective for lateral
resistance of the roof diaphragm.  How is the developed shear
load supposed to get to these walls?  The plan now conforms
to braced wall specifications and all the holdowns, footing
requirements, and shear ply I originally specified have been
removed (gyp panels were used).  There are also now no
collectors at diaphragm and/or chord discontinuities yet the
UBC allows this by meeting the braced wall criteria.  I spend
more time trying to explain why the designs end up so
different, but usually only confuse the client/designer further.
The framers and contractors usually think we are the "bad"
guys by adding all these "unneccessary details" and costs
associated with them.  They (the contractors usually) will
often say things such as "we've built dozens of houses just
like this one (in one case an identical house across the street
from the current project) and never needed all these straps,
hardware (hold-downs) and plywood extensions."  I'm
never really sure exactly how to respond.

What's worse is some building departments are asking
that we address only the areas that do not conform and turn a
blind eye to the areas that do.  This seems highly unproffessional
when there are usually other areas of the design that concern
me more than simply having a shear line that offsets more than
the 4 feet allowed.

I would appreciate any advice and/or comments regarding
this situation.