The Five Steps to Successful Reconstruction and Repair Projects by Shani O . Zakay & Andy G . Ronan
Major construction and repair projects can take a significant toll on the sanity of even the most experienced a board of directors , the members and managers . Repair prioritization , contractor selection , and funding options present just a fraction of the various elements that must be weighed and considered prior to commencement of work . Whether conducted post-litigation , or simply as a result of deferred maintenance , all Boards face the same preliminary question when it comes to reconstruction and repair projects : Where do we begin ?
1 . Understand What Needs to be Repaired
After settlement / verdict in a construction defect case , associations and managers are inundated with litigation materials . There are settlement agreements , defect lists , cost of repair reports , and a bevy of other case file documents that must be reviewed and considered . Expert reports provide a comprehensive analysis of deficiencies throughout the development as well as preliminary cost estimations to remedy the defective elements . While different attorneys use markedly different techniques in developing these reports , review and analysis of reports for both the association and the developer can provide insight as to the elements requiring immediate attention . If elements are consistent in scope , and have a similar cost , both sides generally agree that those elements contain legitimate defects and require repairs .
Where an association is not conducting reconstruction projects post-litigation , but instead due to deferred maintenance or as a comprehensive maintenance / repair package , expert reports will not be available but alternative documentation to assist in this step likely exists . Reserve studies indicating deficiencies , homeowner correspondence , maintenance records , and routine visual property inspections can all provide important insight as to which elements require immediate repair .
Finally , it is important to consider the difference between life safety elements ( fire sprinkler systems , ingress / egress , etc .) which require immediate repair versus aesthetic elements that do not require immediate attention .
2 . Issue Requests for Proposals
After gaining a general understanding as to the elements requiring repair , associations should issue requests for proposal ( RFP ) packages to pre-construction service providers . The pre-construction service provider , preferably a licensed general contractor specializing in association reconstruction projects , will review all documentation and assist the association in further refining which repairs require immediate attention , based upon the association ’ s reconstruction budget . The pre-construction service provider will then develop a bid package based upon the various scope of work items discussed with the Board and solicit bids for the various reconstruction work .
It is important to have legal counsel assist throughout this process . Counsel will ensure the scope of work coverage is proper , and verify the competitiveness between the pre-construction services provider and other bidders .
3 . Review and Analyze Reserves
During the pre-construction process , it is important to identify all reserve components which may be affected by construction projects . In many instances , a new reserve study will need to be conducted after a reconstruction project , due to modifications in the remaining life of repaired components . Reconstruction projects will also implicate the amount of reserve funding , as some reserve funding may be expended or added depending on the level of construction to be performed .
In addition , associations should consider elements that were not identified for immediate reconstruction but are identified on the reserve study as requiring maintenance / repair / reconstruction in the near future . Contactors build general conditions and mobilization fees into each bid , irrespective of the amount of work that is performed . In some instances , associations can actually save money on these fees by having the contractor conduct additional work under the current contract , as opposed to waiting for the end of the useful life of a particular component to conduct the necessary maintenance / repairs .
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Summer 2017 | Issue # 18 | The HOA Board Quarterly | 13