If you’re beginning or working on a community project, here’s a quick cheat sheet on how to make the project run smoothly.
TRANSPARENCY IS KEY:
Including the community membership in the discussion from the beginning of the project is important to address potential concerns, identify complaints, handle potential conflict and overcome opposition with factual documentation.
WHERE IS THE MONEY?:
Owners will always be concerned about how a large, expensive project will affect them personally so it is important to have a solid plan for payment that can explained – whether it is paid from reserves, a bank loan or special assessment.
MAJORITY VOTE REQUIRED:
The Declaration or State Statute will require a percentage of affirmative votes from the membership to make a material change within the community and may also require a percentage of affirmative votes for a capital project in excess of a certain amount.
The Board is required to perform due diligence by obtaining a minimum of three proposals from licensed contractors with verifiable references that have been provided with the exact same job specifications.
REQUEST FOR PROPOSAL:
An engineer is generally hired to create the RFP which will include detailed material and labor requirements from initial permitting, change orders and final completion.
PUT IT IN WRITING:
The Association’s legal counsel should write a contract that will include the vendor’s contractual requirements in addition to protections for the Association which will detail the permitting responsibility, notice of commencement, production schedule deadlines, payment arrangement, site inspections, product and labor warranties, damages by employees or sub-contractors, monetary penalties and a hold back amount to ensure completion of the punch list along with the notarized releases from all sub-contractors.
Worth the investment to protect the Board from liability and provide a professional result by ensuring that required inspections are performed, permits closed, damages minimized, complaints addressed, change orders approved, payments made on time and deadlines met. A project manager protects the client’s interests by providing a proprietary contract, project schedule and deadlines with punitive damages. If you’re in need of a Project Manager for your community, Signature Management has qualified professionals that can help.
We strongly recommend following these tips to avoid any liability issues, confusion, or mismanagement.