| April 12, 2000 |
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The "off" season is the time of year that the Board should be arranging and reviewing proposals for fair weather construction and renovation projects. Painting, fencing, pool replastering and roofing are but a few of the major items that fit the profile. There are several practical reasons for starting the process early: Contractors are available - Winter is a slow time for many contractors. This means they have the time to thoughtfully consider your work and produce a good proposal. Better pricing - Sometimes the work you want done can be performed during the winter months, (even certain kinds of roofing). If you agree to start the project now, you just may save a significant amount of money. Scheduling preference - If you accept a contractor's proposal now, you can generally call the shot as far as scheduling. Do not wait until late spring or summer...you may not make the schedule at all. Arranging for money - If you haven't accumulated enough reserve money to do the work, you will need several months to discuss, approve and collect a special assessment. Coordination with residents - If the project is extensive and disruptive, you will want to warn residents well in advance of the timing and length of it. This will give them the opportunity to work around or even plan vacations strategically. Always get references and check them out. It is important to use only contractors that have a good track record. Make sure the references are for work that is comparable in size and complexity to yours. It is not uncommon for small contractors to get in over their head when trying to nail down work. Feel comfortable that they can deliver what they promise. Always, always (repeat) always use contractors that are properly licensed, bonded and insured to do the work they are contracting to perform. If you have any question about requirements, contact the state licensing board. Use it. Insist on getting a current copy of the contractor's liability insurance coverage directly from his insurance agent and if you accept the proposal, require that the association be included on this insurance as an "additional insured". Again, get an appropriate and current insurance certificate from the contractor's agent to prove it. Do not make advance payments on the project work. This is often the sign of a contractor on a "shoe string" that may be using your money to pay past labor or supply bills. You could be left high and dry with uncompleted work. Instead "progress payments" are commonly called for that pay for work completed to date. Make no more than two per month and be sure to inspect the work to verify completion. When making payments, have the contractor sign a Lien Waiver for the amount tendered. (Your attorney can provide the appropriate form or ask the state contractor's board for a sample.) A Lien Waiver is the contractor's promise that he has paid (or will pay) all labor and material/supply bills related to the project. Keep in mind that if your contractor "forgets" to pay his suppliers or subcontractors, those folks have the right to place a lien on association property to secure their debt. It's a good policy to require copies of all supply, material and labor bills be attached to and referenced in the signed Lien Waiver. For any substantial construction, it is very important to involve an attorney who can draft or review the contract. Don't bypass this important step. There's a lot riding on what the Board is obligating the association to. There is much to know about proper project planning. Forget the leap of faith on this one. (The safety net just may not be there when you land.) Take the prudent steps needed to protect the association and to get a quality job done at a fair price. For more on this subject, see www.regenesis.net |
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