Your community may be faced with a large siding, dryrot or structural repair. These projects often involve a number of trades like carpentry, electrical, plumbing and engineering that must be properly combined for a satisfactory outcome. If the scope of work is large, it makes sense to use the services of a professional Construction Manager (CM). Why? Here are some of the reasons:

Speak the Same Lingo. Contractors, like professionals in all fields, prefer to work with people who understand their trade. Making a profit depends on maximum production and efficiency from a work crew. CMs speak "Contractorese".

Good Specifications. A good CM provides the kind of specifications that allows subcontractors to be more price competitive. When dealing with laymen like homeowners, it's common for subs to add a margin to compensate for potential problems resulting from inadequate specs.

Getting The Material For Which You Bargained. Occasionally materials get "mistakenly" delivered to another job site or arrive in a lesser quality than ordered. Consider having your CM buy the materials direct and have them delivered to the job site. The CM will ensure you get what you ordered.

A good contract includes clauses that keep costly change orders to a minimum such as:

1. Time frame for job completion.
2. Penalties for failing to meet the deadline.
3. Hours when work may be performed.
4. Requirement for liability and workers compensation insurance.
5. Quality checks prior to payment.
6. Progress payments based on work completed.
7. holdback pending final review.

Don't Advance Funds. Associations managing their own projects, large or small, often fall into the trap of advancing money prior to work being done. Prepayment is a red flag. Contractors that require prepayment are often in financial straits or do not have adequate credit to purchase the materials needed for the job. Occasionally, contractors disappear with the money or pay another job's bills with it. There can be exceptions to this rule, like purchasing custom built windows or installing special order materials. If this is the reason for prepayment, have the materials delivered to the jobsite and pay the bill directly.

Another alternative to prepayment is to have an agreed deposit placed in escrow subject to certain conditions being performed like contractor completing satisfactorily an equivalent amount of the work.

Lien Releases. Lien releases are written and signed statements from the contractor that warrants all employees, subcontractors and suppliers involved in the job have been paid. Employees, subcontractors and suppliers have the legal right to file a lien on the property to which their labor or materials is attached. Don't tender payment without exchanging it for a lien release that transfers this liability to the contractor. Writing the check to both the contractor and supplier is additional insurance that it won't come back to haunt you.

Scheduling. CMs handle the complex scheduling of various trades to ensure smooth job progress. Understanding the sequence of construction events is essential. CMs aren't afraid to apply pressure to speed up slow contractors, (contractorese is "kicking butt").

Hold Back. It's common to withhold 10% of the total contract pending completion of a "Punchlist" (corrections and left-to-do list) gathered as result of a walkthrough by the contractor and CM. Don't release funds unless satisfied that the job is complete.

Construction managers are masters in piecing together complex projects and getting the best value for your money. There is too much at stake to risk trying to do this yourself. Don't go down this road without one. Get a CM involved in the planning stages to run the project from start to finish.

For more information on this subject, see www.Regenesis.net.

Published: April 25, 2001

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Richard Thompson owns Regenesis, a management consulting company that specializes in condominium and homeowner associations. He is a nationally recognized expert on HOA management issues. Regenesis publishes The Regenesis Report, a monthly newsletter for HOA boards, developers and managers. To subscribe, go to Regenesis.net. He can be contacted by email at .