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Tips before starting major repairs on your community – San Bernardino Sun

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One of the biggest challenges HOA periodically faces is the massive rebuilding process.

Whether it’s a new roof, balcony renovation or other major repair, the typical volunteer board and professional manager aren’t often involved in hiring for such jobs. As a result, many potential pitfalls can contribute to additional costs or risks. Before submitting a contract to legal counsel for review, consider these 12 planning tips.

What does HOA need? HOAs often ask contractors to suggest the association’s “scope of work”, that is, job descriptions and “specifications”, the specific materials to be used. While contractors often prepare proposed work ranges and specifications at no charge, if multiple contractors are involved, it is important to have a consistent scope and specifications. otherwise the bids cannot be compared with each other exactly.

Consultants. Qualified consultants can advise HOA on scope of work and specifications, contract arrangements, bid evaluation and respond to contractor requests for additional funds. Such consultants typically charge an hourly fee and act as HOA’s client advocate throughout the project. Many HOAs would greatly benefit from such help.

What kind of contract price? A fixed price offer is just one type of payment arrangement. Depending on the circumstances, a contractor may be hired on a “cost-plus” basis, where the actual cost of the work is marked at an agreed rate. Another type of arrangement is the “time and material” arrangement, where the contractor charges an hourly rate for their labor and is reimbursed for the cost of the material provided (with or without markup).

Lowest bid? The costs of a project that involve significant potential damage risks (rot or termites, for example) can be very difficult to estimate for contractors and can drive up bids. In that situation, a “plus cost” arrangement may prove better for both parties, as the contractor is not tied to a fixed price and therefore will not need to raise their prices to protection from further complications.

Payment schedule. Contractors often recommend payment schedules based on percentage of completion. However, how does the HOA know if the percentage quoted is accurate during the ongoing project? Look for more clear payment indications against completion percentages.

Test project. In projects involving repetitive work such as decks or balconies, paying the contractor on a cost-plus basis for the first place can provide a solid fixed unit price for the units. other mind.

License – required. The type of contractor doesn’t have the right license for the job or if their license number doesn’t match the name of their business. Check the license at www.cslb.ca.gov.

Sponsor. If a bank loan or special appraisal is the source of money, be careful about contracting for repairs before the money is available.

Project budget. Consider other project costs, including a contingency line item in the HOA’s budget.

Quality control. Spending the extra upfront to have a consultant inspect a contractor’s work on the spot can save money and headaches in the long run.

Other planning considerations. How many working hours are allowed? Do you need a place to store materials? How will residents be notified of work beginning on their building or street?

“Measure twice… and cut once,” is the old construction saying. Planning well in advance is always better than undoing mistakes.

Kelly G. Richardson is a Fellow of the Community College Bar Association and a Partner of Richardson Ober DeNichilo, a law firm known for its community association advice. Send a question to Kelly@rodllp.com.

https://www.sbsun.com/2022/01/21/hoa-homefront-tips-before-starting-major-repairs-on-your-community/ Tips before starting major repairs on your community – San Bernardino Sun

Tom Vazquez

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