New crew sheathed a 40-foot wall with 7/16 OSB.

This is a mess. Here's what needs fixing, based on code and best practice:

1. Layout Error (Critical)

• IBC 2308.6.3 / IRC R602.3: Studs must be spaced at 16" o.c. maximum. Starting the first stud at 16" instead of 15¼" means the last bay is only 12", creating a non-standard, under-supported bay.
• Fix: Strip the sheathing, re-lay out from the corner with the first stud at 15¼", ensuring 16" o.c. throughout.

2. No Expansion Gaps (Critical)

• OSB manufacturer specs (APA): Require 1/8" minimum gap between panel edges and ends to allow for expansion. Butting tight will cause buckling/warping.
• Fix: Remove panels, re-install with proper gapping.

3. Nail Heads Buried 1/8" (Safety Issue)

• ADA / General Safety: Protruding nail heads or deeply buried fasteners create trip hazards and compromise panel integrity.
• Fix: Pull and re-drive all nails flush or slightly below surface—never 1/8" proud.

Bottom Line: The wall looks clean but fails structural, moisture, and safety requirements. Make them strip it and redo properly. Don't accept shortcuts that compromise the build.

You have three code violations to fix. Tear it off and redo it.

1. Layout is wrong (IRC R602.3 / IBC 2308.5.1). Studs must be spaced 16" on center. Starting the first stud at 16" from the corner puts the center of the second stud at 32", the third at 48", etc. The panel edge falls on the center of the stud, leaving only 3/4" bearing for the next panel. You lose nailing surface and panel edge support. First stud must be at 15-1/4" (or 23-1/4" for 24" OC) so the 48" panel edge breaks on the stud center.

1. Zero panel gap (APA Engineered Wood Construction Guide / IRC R602.1.1). Butting OSB tight guarantees buckling when it expands from moisture. 1/8" gap required at all panel ends and edges. Use a 16d nail or spacer tool as a gauge.

1. Overdriven nails (IRC R602.3(1) / ESR-1539 / APA specs). Nail heads must be flush with the panel surface. Countersinking 1/8" crushes the face strands, destroys the shear capacity of the fastener, and voids the shear wall design values. Reset the gun depth. Any overdriven nails require a new nail within 3" (not beside the hole—new location).

Fix: Pull panels. Snap correct layout lines (15-1/4", 31-1/4", 47-1/4"...). Rehang with 1/8" gaps. Gun set flush. If the wall is a braced wall panel/shear wall, this isn't cosmetic—it’s structural.